Can netflix recover from its strategic mistakes?

Introduction and follow overviewNetflix is the worlds leading provider of online drift media and exposure rentals with more(prenominal) than 50 cardinal of online subscribers.1 It is the al near prominent provider of online drift media in the world with trading operations in the US, Canada and in 42 countries in Latin America and the Caribbean. In fact, Netflix is the sensation largest source of earnings traffic in the US, consuming 29.7% of the round top d consumestream traffic.2 Since its inception, this giant provider of online stream media has gained increase familiarity. The follow was initiative founded by Reed Hastings in 1997.3 Netflix began its operations with the selling of television systemdiscs and beseech of rental services by mail. The demand for videodisk by rental services quickly outweighed the demand for buying videodiscs which led to the corporation emphasissing their line of reasoning good example on dvd rentals.4 Over the years, the at tach tos yield quickly gained momentum to the point that it passed its 500,000 subscriber mark.5 The guild brood to watch a rapid growth and by 2003, the subscriber fanny had already tripled to 1.5 jillion.6 In 2007, Netflix launched the online- stream services and positi onenessd itself for the imminent transition to digital media by partnering with companies such(prenominal) as Microsoft, LG Electronics, Samsung and Roku and negotiating agreements with the biggest merriment companies such as CBS, Starz Entertainment, and Disney for streaming of media circumscribe.7 end-to-end 2010 and the first half of 2011, the community experienced an unprecedented growth. The number of online subscriptions in the US alone doubled from 12.3 million to 24.6 million.8 The quarterly revenue chop-chop increased from $445 million to $770 million and the mental strain harm increased contact an all-time steep of $304.79.9 How incessantly, a series of system changes implemented in mid Jul y 2011 tarnished the companys image and led to a dunk dusk in profitability and stock price. In mid-July 2011, Netflix implemented a new price externalize which increase the monthly subscription by 60%. Customers reacted negatively to these price changes with more than 600,000 Netflix subscribers goatcelling their subscription.10 Towards the end of 2011, the company implemented an other(a)(prenominal) strategic change by creating Qwister and splitting the videodiscs-by-mail stock from mesh streaming melody. This sparked a second furore leading to a further decline in its stock prices. Netflixs decline in the assiduity muckle be attri alo destiny to such kind of strategic mistakes. With these in mind, low flavour Netflix washstand recover from its strategic mistakes?External psychoanalysisNetflixs performance in the effort is affected by a number of foreign factors. An external audit of the constancy reveals virtually of these political, economic, well-disposed an d proficient factors.PESTLE ANALYSISPolitical and Legal factorsAmong the respective(a) factors affecting the performance of Netflix in the industry argon the political and statutory factors, peculiar(a)ly legal battles, trademark, copyright and patent moments. Netflix faces on liberation legal battles with nearly(prenominal) companies including Comcast and Time Warner Cable.11 This began with complaints from Comcast nodes that the connection speed for Netflix streams had dropped significantly. Netflixs own information showed a massive decline in connection speed as shown in the figure below.Fig. 1 Netflixs own data showing a massive decline in Comcasts connection speed.12More modernly, Netflix filed a petition with the US Federal Communications Commission challenging the proposed nuclear fusion reaction between Comcast and Time Warner Cable.13 Netflix argues that the merger should not be beargond under the FCCs public interest standard as it would stifle the competitive internet securities industry place and could potential droply cause public harm by making the already dear(predicate) higher(prenominal) definition (HD) even more expensive for icon companies and consumers.14 However, the petition to deny the proposed merger whitethorn not advance as the commission has already determined that Comcast has the right to discriminate against online video distributors. The commission alike determined that the public harm claim that Netflix raised was merely speculative and highly unlikely. The approval of the proposed merger points to the difficulty that Netflix may face in future. Comcast has already shown its go outingness to discriminate against online video distributors by manipulating internet traffic at interconnection points with the aim of harming Netflix.15 Social factorsFrom the social perspective, Netflix relies on the popularity of its media subject field among consumers. til now though Netflix has raced to contract ubiquitous having pioneered online streaming, its main weakness has been the inability to feature the up-to-the-minute releases. It should be remembered that consumers want the most recent fill. This is a particular subject where Netflix has always been lagging behind. According to a recent consumer report, 81% of the respondents were found to stream media from Netflix, making it the most popular.16 However, these respondents uttered their dissatisfaction with the service citing Netflixs movie line up as the biggest issue of concern. Respondents were displeased with the limited selection of movies especially the latest releases.17EconomicIn terms of economic factors, Netflix operates in an industry characterized by large entry cost, low prices and a very competitive environment. To maintain an edge in the market, firms welcome to price competitively against rivals.The industry is chill out at its infancy and umteen another(prenominal) companies pure tone to the fore to be experiment ing their business models. For example, YouTube recently reached an agreement with Lions Gate Entertainment which secured it rights to mainstream movies from the entertainment company.18 Apple recently unveiled its plans to develop an upgraded Apple TV that allow consumers to stream video from TV Sets. Hulu recently begun a new subscription plan that allows customers to watch some TV shows that argon not available for reconcile at the cost of $10 per month.19 With streaming becoming more competitive, Netflix testament hold up to improvise in order to continue to thrive in the industry.TechnologicalTechnology is promptly changing and for Netflix to continue to thrive, it must contend with the constantly evolving and competing technology. Even though Netflix gained its initial competitive prefer from its business model which capitalized on the weakness of the tradition brick and mortar businesses, it continues to face the challenge of adjusting to new expert pressures.20 Already some of Netflixs competitors are digesting additional in advance(p) services to its customers. For example, virago Prime provides users with services such as forfeit two-day shipping and free kindle book in addition to heartbeat video streaming. HBO has made its online satisfy available for purchase without the motivating of stock subscription. Vudu is releasing some(prenominal) titles the same day they out on videodisk compared to Netflix which releases them 28 days later.21Five forces simulationRivalry among firmsThere is no inviteion that competition is becoming more intense in the industry. Netflix faces many rival competitors in the industry from smash hit to Hulu Plus, Amazon Prime, Vudu, Comcast, Google TV, Apple TV and many others (Indiviglio, 2010). The intense rivalry is callable to the large consumer market in the movie rental industry. The rivalry is to a fault increased by the different methods that consumers can obtain a movie from in-store rental to mai l delivery to online streaming and video on demand. The reverse costs watch relatively low which perhaps contribute to the wild rivalry in the industry. A large number of the rival competitors project large levels of capital and greater economies of scale which makes competition in the industry very fierce.Threat of new entrantsWhile Netflix faces intense rivalry from competitor firms, the flagellum of potential new entrants is relatively low out-of-pocket to the large entry costs in the market. Most of the existing firms devour already accomplished a well-known brand such as Hulu plus, Red box and Amazon instant video.22 This makes it increasingly difficult for new track downers to thrive in the market. A potential new entrant would make up to incur a crew costs in marketing and advertising to establish its brand and become competitive. Threat of substitutionSimilarly, the threat of substation is relatively low as many consumers prefer online streaming to physical DVD r entals. While in that location is no much of a threat to Netflix online streaming model, in that location is an existing threat from illegal pirating. Some electronic networksites provide customers with free access to most media mental object. However, most of these websites are illegal. Further, these websites are somewhat complicated and are not close to intuitive as Netflixs service.23 While it be governments responsibility to enforce anti-pirating laws, it may be in Netflixs crush interest to lobby for tighter enforcements of these laws.24Bargaining occasion of consumersIn terms of the bargain role, consumers seem to get to a higher ground. Consumers amaze a higher bargaining power since there are many resources in the industry with little or no switching costs. Netflix currently charges its customers an affordable monthly fee of $7.99 but since customers are not locked into contracts, they can easily switch from one online streaming company to another with minimal or low switching costs.25 mellowed consumer bargaining power implies that the company must be very careful in implementing its strategies. This can be seen with the price changes that Netflix imposed on its subscribers in 2011. A new pricing plan announced by the company in mid-July 2011 which increased the subscription price by 60% sent the companys stock price in a tailspin.26Bargaining power of suppliersContent remains a key input in Netflixs business strategy. Since there are very few media content providers that offer high tone content, the bargaining power of suppliers remain relatively high. Suppliers can impose a price increase or offer low quality content and this could have an adverse impact on the companys profitability.27 Recognizing the relatively high suppliers bargaining power, Netflix recently begun developing its own content, some of which have received acclaim in the industry such as the House of cards and Hemlock Grove.28 However, despite these efforts, Netfli xs endurance is largely dependant upon the variety of its content. Netflix still has to rely on its content providers to meet the needs of its large consumer base.II Internal analysisAn analysis of the national environment of Netflix is withal strategic as it identifies the competencies that currently exist for the company to compete strengthively. The VRIO framework and value chain model is going to be very useful in the analysis of the internal environment.Distinctive competencies the VRIO frameworkQuestion of value are the companys resources and capabilities enabling it to capitalize on opportunities and neutralize external threats?In terms of diffusion, Netflix has a sustainable advantage. It has some(prenominal) distribution channels from the physical distribution of titles through physical stores to distribution by mail.29 However, this is a temporary advantage as blockbuster is be a huge threat to the physical distribution of titles. Perhaps the biggest sustainable advantage lies with their online streaming capabilities. Being the first company with the capability to offer online video streaming service, it undoubtedly ranks at the top of video companies with the most widely streamed content. However, Apple is posing a huge threat having established presence in online streaming through iTunes.30Question of rarityAre there only a few numbers of firms with these capabilities?In some certain capabilities, Netflix have a sustainable advantage over competitor firms whereas in other capabilities, the company has only a temporary advantage. For example, in DVD rental and coloured Ray rental Netflix only has a temporary advantage since many firms have the capabilities to produce these items.31 However, with regard to online streaming, title variety, and convenience to consumers Netflix has a sustainable advantage. This is because many other firms in the industry do not have the internal capabilities to innovate in these particular areas. Question of inimitability?The industry is characterized by large entry costs. Many firms insufficiency the necessary resources and internal capabilities to offer similar content. It is quite expensive and extremely difficult to form agreements with content providers. Netflix has a temporary and sustainable advantage in this particular area having engineered the online streaming business model and formed agreements with several content providers including warner Bros and CBS among many others. Netflixs possess key resources and capabilities that provide it with advantages that are not informal to imitate.32Question of organization?An important part of the internal analysis is examining how the policies and procedures are organise and whether this organization supports the companys use of its valuable resources. Netflix has a operable centralized organizational structure in which the CEO has direct regard over its six departments.33 Netflixs embraces a culture of freedom and innovation. Empl oyees have the freedom to remain innovative and crosswayive. This shows how the companys organization policies are organized to support its valuable resources.Part III Issues and challengesHowever, even with these resources and competencies, Netflix faces some challenges/impediments in its drive to remain competitive. One major challenge is its cartel on content providers. The company still has to depend on other content providers such as CBS and Time warner in order to continue to maintain the breadth and variety of their products. Such form of dependence can have dire consequences on the company especially where there are disagreements. For example, in mid July 2011, Netflix was forced to implement a new pricing plan that raised the monthly subscription by 60% after Starz, one of its content providers, demanded $300 million for renewal of its license with Netflix.34 Initially, Netflix had been paying this agio movie channel $30 million annually. This was a huge step back and le d to a steep decline in its stock price. Recently, Netflix was forced to remove some of its content after losing its contract with Viacom International, a leading provider of children shows.35While the huge subscriber base may give Netflix some sought of leverage in negotiating terms, much of its excerpt is still at the mercy of its content providers. Another challenge lining Netflix lies with the uncompromising competition in the movie industry. Even though the threat for potential new entrants is relatively low, there is an intense rivalry in the industry among key players such as smash hit, Hulu Plus, Amazon Prime, Vudu, Comcast, Google TV, and Apple TV.36 With the strawman shifting online, Netflix is going to be in direct competition with some of the well-financed and innovative companies such as Apple, Google and Amazon.37 Netflix provide have to be savvier than ever by negotiating better agreements for online streaming in order to take on these giant companies.38Part IV G eneration of strategic growth optionNetflixs overall situation is fairly attractive and somewhat sustainable. However, there are a number of strategic Options that the company could adopt in its efforts to continue to grow and develop. The Ansoff matrix alsol below will be used to describe these options.Ansoff matrix tool39Ansoff MatrixMarket studyInternational expansion is one of the strategic growth option. Netflix has already entered into regional license agreements to stream media content from 42 countries in Central America, South America and the Caribbean.40 However, this internationalistic expansion need to be implemented very cautiously. While this has allowed Netflix to expand its subscriber base, the company is disbursal so much that it doesnt actually profit from this international expansion. For example, in the last quarter of 2012, international losses hit $105 million despite the gain of 6 million new subscribers.41Product developmentThe company could also benefi t from developing its own original content and stress on the online streaming business. Developing its own original content will abase their dependence on content providers. There is also an imperative need to phase out the DVD mailing option from Netflixs business model. The movie industry is quickly shifting online, yet Netflix continues to develop millions of DVDs which have high operating costs. Despite its huge revenue, Netflixs margins are eaten up by its huge mathematical product costs.42 With the movie industry shifting online, Netflix may lose out on major profits if they take too long to phase out the DVD mailing option.Market penetrationIn terms of market penetration, Netflix need to increase its domestic market. Growth in online streaming has resulted due to the increasing broadband penetration, growth in committed devices, faster transfer speed and the broader trends of media consumption.43 A large part of the purchasing and usage of Netflixs content come from exist ing customers in the US. However, there is still a larger market in the US that Netflix can benefit from. Netflix can leverage its first mover advantage to expand more speedily in the US.DiversificationNetflix is currently in competition with rivals in the market in two main product lines dvd rentals and online streaming. With virtual rivals such as Amazon, Hulu and cable TV companies among many others, competition in online streaming is going to be intense. In the product line of DVD rental, competitors such as plosive speech soundbuster and Red-box pose a huge threat.44 To maintain an edge in the market, Netflix need to diversify its product line to include video and calculator games.Part V Evaluation of strategic growth optionsWith these strategic options identified, it is important to evaluate each option in terms of suitability, accessibility and feasibility. SAF framework will be very useful in this evaluation.SAFe frameworkSuitability criteriaSuitability criteria will eva luate whether these strategic options support Netflixs mission and values, whether they are suitable for industry life cycle stage and whether they strengthen Netflixs competitive position. Netflixs mission statement is to grow the streaming subscription business both domestically and globally and to rectify customer experience turn staying within the argument of their consolidated income and operating profit.45 Strategy optionsSupports Netflixs mission and valuesSuitable for industry life cycle stageStrengthens Netflixs competitive position Expanding subscriber base internationally market developmentyesYes it is important to expand internationally currently in the industry.Yes. In the long term, this will consolidate their position in the industry Expanding rapidly in domestic market market penetrationYesYes market penetration is also important.Yes, in the long run. Focusing squarely on online streaming business and producing some its content product developmentYesYes the shifting market environment makes this strategy very effective.Yes the industry is lamentable online and this strategy will significantly correct Netflixs competitive position Diversifying product line to include video and computer games.yesYes suitable for industry life cycle stageYes this strategy will distinguish Netflix from competitorsAccessibility criteriaThe accessibility criteria is assessed based on customer reactions, risks of losses and returns on investments. Strategy optionsReaction of customersRisk of lossesReturns on investments Expanding subscriber base internationally market developmentNo effect on customer reactionHigh margins from international segment so far remain very low compared to domestic levels. Already the company has incurred huge losses from this expansion.Low Broadband infrastructure is very poor in many international countries and pricing strategy may be seen as high in developing economies. Expanding rapidly in domestic market market penet rationNo visible effectLow margins from domestic segments are very highHigh the current low pricing form _or_ system of government is very attractive for new customers and entertainment consumption remains high Focusing squarely on online streaming business and producing some its content product developmentPositive impact provides customers with the convenience they need.Low the industry is shifting online and customer subscription for online streaming is increasing.Very high market shifting online and broadband infrastructure allows for streaming of high quality hence improving customer experience.Producing its content will prune its dependence on content providers. Diversifying product line to include video and computer games.Positive it will enhance customer experienceRelatively low due to lack of differentiation between competitorsHigh the added feature will increase customer experience among consumers who like video games. Feasibility criteriaFeasibility criteria inv olves examining whether Netflix has the internal capabilities and resources to support implementation of these strategic options Strategy optionsDo existing technological assets support this strategy?Does Netflix have seemly pecuniary resources to support implementation of this strategy?Is there enough nurture available for implementation of this strategy? Expanding subscriber base internationally market developmentTechnically, Netflixs content delivery entanglement is able to support this strategy.Netflix still has enough monetary resources to expand internationally, however, huge losses have been incurred in implementation of this strategyYes, there is enough data to implement this strategy, however, the losses incurred so far raises the question of whether it is a feasible option? Expanding rapidly in domestic market market penetrationYes, Netflixs content delivery network is able to support this strategyYes, the company still has enough funds for market penetration.Yes, Netflix has enough information to ensure success of this strategy. Focusing squarely on online streaming business and producing some its content product developmentYes, Netflix has exceptional tools with well-grounded analysis that enable it to detect faults in systems, improve on customer experience and handle increasing data traffic.There are enough financial resources to implement this strategy.Yes, Netflix has enough information. For example, when it created its original TV series House of tease, Netflix knew that it would be a hit based on examining consumers viewing habits. Diversifying product line to include video and computer games.No, Netflix may not have the technical capabilities to produce computer games.However, there are enough financial resources to implement this strategy.Also, there might not be enough information to implement this strategy. Netflix may not have enough history data to base on since most consumers subscribed to watch movies and not play computer games. PART VI Description of Selected StrategyNetflix need to focus squarely on the streaming business and phase out the DVD mailing option from its product portfolio. It should be noted that movie industry is quickly moving online and the DVD business is bound to declines. This can be seen with the decline in Netflixs domestic subscribers.Declining number of DVD subscribers while domestic streaming subscribers increase.46This is also very much consistent with Netflixs generic business strategy of differentiation, cost leadership and providing customers with convenience. While the DVD business has in the past been very profitable compared to the online streaming business there is a slow but inevitable decline in the DVD business as the industry moves towards online streaming.47 The huge costs associated with production of physical discs, packaging costs and the high costs of running the DVD distribution centers will adversely affect the DVD business.Netflix contributing profit, D VD vs domestic streaming.48Focusing exclusively on online streaming will without doubt enhance these generic strategies by differentiating Netflix from brick and mortar stores such as Blockbuster and Redbox, and providing customers with the convenience that they need. Netflix has the internal capabilities and resources to carry out this strategy successful. For the company to successfully carry out this strategy, it has to be vigilant in supporting millions of connected devices used by consumers in online streaming.49 From the operational perspective, Netflix has large, complex and highly distributed systems environments. The company has exceptional tools with intelligent analysis that enable it to detect faults in systems and improve on customer experience and handle increasing data traffic.50Also, Netflix need to pay more attention on creating its own original content. This will decrease its dependence on content providers. Netflix is guaranteed success in content creation since t hey have enough information about the content that customers are desperately in need of. This can be seen with its original TV series the House of cards and Hemlock Grove, both of which have received acclaim in the industry.51 Netflix is able to determine if a particular TV series or movie is going to be a hit based on consumers viewing habits. This provides them with a huge advantage in content creation. However, this does not mean that Netflix should abandon its providers as its survival is largely dependent upon the variety of its content. Netflix still has to rely on its content providers to meet the needs of its large consumer base.ConclusionIn conclusion, while Netflix is the most prominent provider of online streaming with operations in the US, Canada and in 42 countries in Latin America and Caribbean, it faces a number of political, economic, social and technological factors in the industry. From legal battles emerging form trademark, copyright and patent issues to social an d economic factors such as the inability to feature the latest releases and stiff competition in the industry. The main issues and challenges that Netflix faces are the high bargaining power of suppliers and stiff competition from well-financed and innovative companies such as Apple, Google and Amazon. However, the company could pursue various strategic growth options to further consolidate its position in the industry such international expansion, domestic market penetration, product development and diversification. Based on the SAF framework, Netflix is better positioned to focus exclusively on online streaming business and developing its own original content. This will provide the company with the sustainable advantage that it needs in terms of reducing the suppliers bargaining power, consolidating its competitive position in the industry and increasing customer experience.Netflixs overall situation is fairly attractive and somewhat sustainable. It remains the single largest sou rce of internet traffic in the US, consuming 29.7% of peak downstream traffic. However, given the inevitable decline of the DVD business, the company should consider focusing their business model on online streaming and creation of original content. With the increase capabilities of broadband communication, which allow for faster downloads and streaming of content, the industry is quickly moving online. This does not mean abandoning its content providers. It should be remembered that Netflixs survival is dependent on the variety of its content. Netflix should be savvier than ever by negotiating better agreements for online streaming, increasing the selection of titles and making it possible to stream more content including the latest releases.ReferenceAdhikari, V.K., Guo, Y., Hao, F., Varvello, M., Hilt, V., Steiner, M. and Zhang, Z., Unreeling Netflix understanding and improving multi-CDN movie delivery. University of Minnesota. 2012.Carrol, H., Menenberg, A. and Kwok, I., Strateg ic report for Netflix, Inc. harbor Consulting, 2009.Culp, C., Friedman, M., Lincoln, G., Reeve, Q and Matt, A., Netflix past, present and future innovation. Entrepreneurship and Innovation Strategy, visible(prenominal) from http//faculty.tuck.dartmouth.edu/images/uploads/faculty/ron-adner/11EIS_Main_Project_-_Netflix_Paper.pdf, 2012. Viewed on twelfth declination 2014Datastax, Netflix gives users exactly what they want every time. California, Datastax. 2014.Davis, R., Netflix, Amazon sued over web media patent. Law 360. New York Times. for sale from http//www.law360.com/articles/81037/netflix-amazon-sued-over-web-media-patent, 2008. Viewed on 13th celestial latitude 2014Doughty, M., Strategic management and organizational culture how Netflix survived disaster. Lethbridge College, 2013.Erickson, M.C., Stallman, E., Kalt, D.J., and Guhr, A.W., Petition to deny of Netflix, Inc. Washington DC. unattached from http//apps.fcc.gov/ecfs/document/view?id=7521819696, 2014. Viewed on 2 2nd declination 2014Favaro, K., Strategy and transaction Netflix wasnt all wrong. useable from http//www.strategy-business.com/article/cs00003?pg=all, 2012. Viewed on twelfth December 2014Gaines, A., Accounting Netflix, Inc. a financial analysis. Available from https//www.lagrange.edu/resources/pdf/citations/2009/03Accounting_Gaines.pdf, 2009. Viewed on 12th December 2014Haberfellner, R., General management and organization lecture notes, Institute for General instruction and Organization, Graz University of Technology, 2009.Hitt, M., Ireland, D., Hoskisson, R., Strategic management competitiveness and globalization, cases. Cengage Learning, 2008. Vol. 2Indiviglio, D., 3 big challenges confront Netflix. The Atlantic. Available from http//www.theatlantic.com/business/archive/2010/09/3-big-challenges-facing-netflix/63637/ 2010, Viewed on 19th December 2014Kopytoff, V.G., alter online, Netflix faces new competition. The New York Times. Available from http//www.nytimes.com/2010/0 9/27/technology/27netflix.html?_r=0 2010, Viewed on 12th December 2014Krengel, A., Dudek, A., Momboisse, R., Paik, T. and Martin, T., Netflix a company analysis. Santa Clara University. Available from http//mgmtclarity.files.wordpress.com/2010/04/capstone_final_report.pdf 2010, Viewed on 12th December 2014Lew, J., Bowers, T.P. and Weiss, J., Netflix, Inc. Client report. Available from http//economics-files.pomona.edu/jlikens/SeniorSeminars/Likens2014/reports/netflix.pdf, 2014, Viewed on 16th December 2014Lieberman. D, Netflix Says it WillLet ViacomDeal Expire, Available from http//www.deadline.com/2013/04/netflix-viacom-networks-dealexpire/ 2013, Viewed on 20th December 2014Mavinkurve, R., Becker, J. and Christensen, B., Improving Netflixs operational visibleness with real-time insight tools. The Netflix Tech Blog. http//techblog.netflix.com/2014/01/improving-netflixs-operational.html 2014, Viewed on 23rd December 2014Mick, J., Netflix accuses Comcast of rip off customers, file s to block merger. Daily Tech. Available fromhttp//www.dailytech.com/Netflix+Accuses+Comcast+of+Ripping+Off+Customers+Files+to+Block+Merger/article36453.htm 2014, Viewed on 12th December 2014Mourdoukoutas, P., Can Netflix correct its strategic mistakesForbes. Available from http//www.forbes.com/sites/panosmourdoukoutas/2011/10/10/can-netflix-correct-its-strategic-mistakes/ 2011, Viewed on 12th December 2014Netflix, Netflix company profile. Available from http//netflixcompanyprofile.weebly.com/ 2014, Viewed on 26th December 2014Reisinger, D., Netflix streaming mighty popular but sadly lacking. CNET. Available from http//www.cnet.com/news/netflix-streaming-mighty-popular-but-sadly-lacking/ 2012, Viewed on 13th December 2014Roettgers, J., The slow but inevitable decline of the Netflixs DVD business. Available from https//gigaom.com/2013/10/21/when-will-netflix-kill-its-dvd-subscriptions/ 2013, Viewed on 22nd December 2014Sanders, M., Why is Netflix suing blockbusterLegal Zoom. Availabl e from https//www.legalzoom.com/articles/why-is-netflix-suing-blockbuster 2009, Viewed on 13th December 2014Shih, W., Kaufman, S. and Spinola, D., Netflix. Harvard Business School Case 607-138, take in Series 9, 2007, pp.1-15.Thompson, A., Peteraf, M., Gamble, J.E, Strickland, A.J., Janes, A. and Sutton, C., Can Netflix recover from its strategic mistakesIn crafting and executing strategy the quest for competitive advantage University of Alabama. McGraw-Hill education, 2013.Waterman, D., Sherman, R. and Wook Ji, S., The economics of online television industry development, aggregation, and TV everywhere. Bloomington, USA, atomic number 49 University, 2013.