Leadership Problem Set 3



Leadership Problem Set 3

Adapt to changes in the environment

Given recent news articles arguing that DVDs are likely to be obsolete by next year, decide on a new strategic direction for Netflix, and persuade an audience of employees, investors, and customers that this new vision is in the best interests of the company’s stakeholders.

Group 1

Ruben Sanchez – Leader

Matthew Morrissey – Researcher

Bastian Golladay – Researcher

Anthony Capone – Writer

Hi my name is Ruben and I am here today to talk about the vision statement of Netflix. I believe the vision statement of netflix should be to “rapidly adapt to their customers changing demands”.

Netflix was founded in 1997 and launched their dvd by mail rental service in 1999. They changed the way people rented movies by allowing the costomers to pick the movies they wanted without ever leaving their homes. Netflix grew to one million subscribers in less than four years and reached an audience of 9.4 million by the end of 2008.

Today Netflix is using technology to continually change the way people rent their movies. Netflix has been expanding to meet their customers demands in a number of ways.

Netflix has already began allowing movies to sream straight to their customers computers.

And beginning this spring Netflix will begin working with TV manufacturuers to build in functions that allow TVs to work with Netflix’s software, so that media can be streamed straight into tvs

With all of the services Netflix offers they earned revenues totaling 1.365 billion dollars in 2008. They currently offer over 100,000 dvd titles with over 17,000 choices that customers can view instantly over the web

The future of Netflix is wide open and that is why a good vision statement is necessary to set a direction for the company to head into for years to come.

According to John Kotter: A good vision statement serves the interests of their customers, stockholders, employees – and can be easily translated into a realistic competitive strategy.

The vision statement I recommend to you today, to rapidly adapt to our customers changing demands, meets all these criteria because:

It will help Netflix provide to the customers what they wantand when they want it. You will be going into the future with your customers at the forefront of your organizations ideas.

By retaining and attracting customers you will increase the value of your company, thereby increasing the value of your investors stocks.

By continually working to adapt to your customer’s demands you will have many opportunities for your employees to utilize their skills and knowledge to expand the services that Netflix provides. This in turn will provide our employees more chances for vertical and lateral moves throughout the organization.

By helping your customers, employees, and investors in these ways you will be benefiting your organization as a whole.

Fact sources:









Kotter, John P. “What Leaders Really Do”. Harvard Business Review. December 2001

Team 2:

Breya Jasper- writer

Brian Henderson-writer

Ben Cox-leader

Michael Arsenault- research

Good afternoon, my name is Ben Cox and I am here today to discuss Netflix’s future in leading the online entertainment industry. Here at Netflix we, to date, is an extremely profitable company that I feel has only yet to reach it’s peak potential. That’s why it is my vision that Netflix will remain the superior leader online and home entertainment, by building a continuous short term foundation that will provide for our overall long term success. In order for any implementation to work, it starts today.

John Kotter says a good vision describes a business, technology or corporate culture in terms of what is should become over the long term and articulate a feasible way of achieving this goal. This is primary intention for Netflix. He also states that some of the best business strategies are mundane, and what some would call ordinary. That it is why it is not just about our products, but its about about expanding on our current successes and innovative products.

Here at Netflix we say our current objective is to be successful in streaming, but it doesn’t stop there. We will rely on our continuous innovation to become capable of much more. Primarily this means being able to stream live on any house hold digital device, including DVD players, game consuls, digital video recorders, blue ray disks and even including all cell phone technologies. Clear wire plans to expand internet service to 120 million people in 80 markets by the end of 2010, opening new doors for us at Netflix, to reach multiple market segments. Acquired licensing contracts would also play a major part in keeping our competitive advantage, and also one step ahead of the pack. Ultimately, these examples are the most important aspects of what we see in our ongoing future here at Netflix.

In order for a vision of this magnitude to work successfully, we must lay a solid foundation as of which we can build upon. Long term successes depend on the compilation of short-term achievements. That is why our focus here at Netflix should revolve around living in the moment, and what we are accomplishing now to reach our distant goals.

A simple equation will demonstrate our efforts, that I will share with you right now is, today plus today, plus today, equals your career. Simply put, what we accomplish on a daily basis, achieving our short-term goals, will establish our overall long-term success. This is a team effort that will increase the value and quality for our customers, increase profits for our investors, create more challenging jobs for our employees and ultimately make Netflix the house hold name.

In Conclusion, as a Netflix family, it is the productive short term goals and living in the moment attitude that will allow this team to take the Netflix name to an ongoing superior level.

Bibliography

Begun, Daniel A. “The future of netflix is all about streaming.” 20 Feb. 2009. (7 Jan. 2010).

Fleishman, Glenn. “Clearwire Announces Expansion Plans.” 5 Mar. 2009. (7 Jan. 2010).

Krotter, John P. “What Leaders Really Do.” Harvard Business Review 79, no. 11 (2001): 85-96.

Satariano, Adam. “Netflix Profit Rises 48% on Increased Subscribers” 22 October, 2009



Begun, Daniel. “The Future of Netflix is All About Streaming” 20 February, 2009



Team 3

Katelyn Downey – Speaker/Leader

Roy Dunlap – Writer

George Fleichmann – Researcher

Kyle Ricci - Researcher

Hello, my name is Katelyn Downey and I am here to present to you the new vision for Netflix. In the past, we started out as a company that focused upon cheap delivery of dvds by mail to our customers.

Netflix currently offers the standard mail delivery systems, and also 10,000 older movies and tv shows online.

Our vision for the future will be to establish a partnership with a major technology leader like Sony, Microsoft or LG in order to innovate a handheld delivery system for movies that can be easily connected to a tv within the next 2 years.

Netflix is the number 1 rated in customer satisfaction for online rentals. 90% of customers surveyed would recommend it to their friends. This new innovation would build upon that success offering more options for consumers.

By entering every consumers home through this handheld device investors profits will increase.

Employees will benefit as much as consumers due to the exciting new opportunities this will bring. They will have the opportunity to help design new solutions for immediate access of movies by consumers.

Netflix is the largest video rental subscription service. In order to continue this position of control, Netflix must adapt to the current times as technology moves away from physical copies and towards digital copies.

There are three major trends that drive us to this vision.

1) Technology moves forward

2) The current environment is leading towards digital medium, without a physical copy.

3) People like having easy to use handheld devices.

Technology moves forward and a company needs to continually innovate to stay relevant. An example of a product being left behind would be betamax or vhs. Dvds are going the way of vhs so it is time for a new direction

The current environment is leading towards digital mediums and away from physical copies. Online Movie rentals reached 12 million people in 2008 and this number should continue to grow.

People like having easy to use handheld devices and sales of such devices have increased dramatically in the last 10 years. A perfect example of this is Apple. iPod sales have exploded and the consumers are hungry for other handheld devices. 57 million iPod devices have been sold in the past 2 years.

For the reasons I have stated, this vision is the clear way to be the most profitable and successful company in our industry.

Work Cited

Internet, mail with instant delivery over the, and all. "Netflix - Overview." Netflix - Overview. (accessed January 7, 2010).

"Netflix (NFLX)." Investing Wiki with Research about Companies, Investment Concepts, and more.... (NFLX) (accessed January 7, 2010).

:. "Netflix Unveils Streaming Set-Top Box." Technology News, Product Reviews, Software Downloads | Digital Trends. (accessed January 7, 2010).

"Netflix vs. Blockbuster: Which is Best? | ." . (accessed January 7, 2010).

"iphone sales figures 2009: fastest selling gadget in history? Not quite!) « The future of mobile and mobile marketing." The future of mobile and mobile marketing. (accessed January 7, 2010).

Team 4

Mary McKay: Leader

Christine Gibbs: Researcher

Amanda Castleman: Writer

Jacob: Researcher

Luann:  Writer

Hello my name is Mary and I am here to tell you the new vision that will make Netflix an even greater success. As of right now, we allow our customers to view movies through multiple mediums. Customers can receive DVDs through the mail, view movies on gaming consoles, through a box than can be connected to your T.V., and they can stream movies online. Our goal will not be to increase the mediums through which our customers view movies, but to increase the availability date.

By the end of 2010, we will to create contracts with major studios that will allow Netflix to steam newly released films while they are still in the theatre. Currently our customers have to wait an average of 4 ½ months to rent newly available movies through Netflix. We have one singular objective, which is to be successful in streaming.

With movie rental stores going out of business, we believe the option of legally streaming newly released videos through Netflix will result in an increase in market share. Blockbuster and Hollywood video have been closing down their stores over the past few years. We believe that in the future, movie rental stores will be obsolete There are 10 million Netflix subscribers as of 2009 and we are convinced with our new vision, that these numbers will begin to increase by the beginning of 2011.

Movie studios are losing money because of pirating so this will allow consumers a legal way to stream new videos online. This will also increase the convenience for the customers who are less willing to drive to theatres to view new releases.

Instead of having consumers pay $10 for a movie ticket, they will be able to watch new releases for $4.50. There are many more options for people to view movies and we would like to become a part of that. We think that our customers as well as our competitors’ customers will be more drawn to watching new movies at home because it will be more affordable.

Through implementing the new system, we believe that there will be more opportunities for growth within Netflix. We will need new candidates to do business with the movie studios as well as technical support to implement the new system.

By implementing the new Netflix vision, we hope to expand our market share significantly by December 2011. We are confident that our consumers as well as the organization will be capable of making this happen.

Works Cited

Chaney, Jen. "An Ever-Shorter Leap From Theater to DVD ()." - nation, world, technology and Washington area news and headlines. (accessed January 7, 2010).

Time has been reduced from a movie being shown in a theater to out on dvd.

"Netflix: Rent as many movies as you want for only $8.99 a month! Free Trial." Netflix: Rent as many movies as you want for only $8.99 a month! Free Trial. (accessed January 7, 2010).

number of subscribers

Protalinski, Emil. "Ars Technica." Ars Technica. (accessed January 7, 2010).

Netflix will offer streaming only

Protalinski, Emil. "Ars Technica." Ars Technica. (accessed January 7, 2010).

CEO Quote

Team 5

Greyson Wright-Leader/Speaker

David Lee- Speech Writer

Rex Barney- Speech Writer

Giuliana Traverso- Researcher

Alex Finwall- Researcher

Our vision for Netflix is to be the place that the world goes, to access all forms of video entertainment through the next decade.

Major Premise 1

DVDs are the staple of Netflix current successful business model.

Currently, Netflix has “11.1 million subscribers bringing in 30.1 million in net income,” and those services will be continued. The number of DVD’s rented every year( ½ billion )is still growing and for the immediate future dvd’s will continue to be our bread and butter. In addition, Netflix will begin to enter the exploding Blu-Ray disc market.

In order to ensure that our efforts are in the right area we will monitor how much each of the different services are utilized. If people keep using the mail order service we will keep offering DVD’s and Blue Rays.

We have already seen an increase in demand for instant access to videos. ,

Major Premise 2

Because of this demand trend, Netflix will strive to increase the selection of videos available for streaming online. In the next year a number of job opportunities will be created to help us make more materials available online. This also seeks “to give customers exactly what they want for video; legal access to what they want to watch, when they want to watch it, with plenty of ways to watch it!”. The investors in turn will be served as we retain our dominance in the video entertainment and information market. The Organization will benefit as a result of serving the needs of all stakeholders.

Major Premise 3

Netflix has also tested the market for educational videos, which has shown great market potential. There is a large volume of educational information that institutions, students, and instructors alike are looking to access each school year. Netflix will build partnerships with educational institutions and publishing groups to fulfill these needs. Much like CSU Chico’s partnership with leading educational publications, Netflix can be the way the world accesses its educational information.

Concluding

Through closely monitoring what is successful for us now, and anticipating shifts in demand

Continuing to build the online accessibility we already offer,

And reaching out to expanding educational markets

Netflix will be the place the world goes for it’s video entertainment and information through the next decade

Foresman, Chris. “Netflix CEO: We’ll Offer Streamin-Only Plan by 2010” 23 Feburary 2009



Grahm, Jefferson. “NetflixLooks to the Future but Still Going Strong with DVD Rentals” 1 July 2009



Oliver, Denise. “ Using Netflix for Homeschooling” 16 April 2007



Satariano, Adam. “Netflix Profit Rises 48% on Increased Subscribers” 22 October, 2009



Wingfield, Nick “Netflix Boss Plots Life After the DVD” 23 June 2009



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