Reading Assignment and Case Write-up

Simon Business School University of Rochester

GBA 220, Business Information Systems and Analytics

Fall 2020

Reading Assignment and Case Write-up due Wednesday, September 16th at 11:59pm

Reading Assignment Read Chapter 4 from the text on Netflix and think about the following questions (note that you only need to write up answers to the questions specified in the case write-up below):

1. To what extent does Netflix’s DVD business exhibit product leadership, service leadership, customer intimacy, and operational excellence (all compared to Blockbuster)? What is Netflix’s key value discipline? Note that there is not necessarily a right answer to this question.

2. What are the biggest differences between the DVD by mail and streaming businesses? Come up with a rough estimate of the cost of a customer watching a single movie in each. State any assumptions you’re making. Note that you will need to make some assumptions.

3. Is content licensing simpler for the DVD by mail or streaming business? Why? If you were a content provider, which licensing would you prefer?

4. Why does Netflix use Amazon’s cloud computing platform? What aspect of computing do they handle on their own? Why?

5. Why did Netflix change its pricing in the summer of 2011?

6. In 2011, Netflix decided to separate their Netflix DVD By Mail and streaming businesses. Why do you think they did so?

7. Netflix stuck to their pricing change, but did not stick with their decision to separate the businesses. Should they have? Why or why not?

8. What is “net neutrality”? Is Netflix in favor of it or against it? Why?

9. What could drive customers to rivals? What do you think of Netflix’s market position?

10. Who are Netflix’s major competitors today in the streaming business? Pick one of them and evaluate their strengths and weaknesses compared to Netflix.

Case Write-up

1. In 2011, Netflix decided to separate their Netflix DVD By Mail and streaming businesses. Why do you

think they did so?

2. Who are Netflix’s major competitors today in the streaming business? What strengths does Netflix have compared to their major competitors?

Your entire write-up should be less than a page, single-spaced, with at least 1” margins and 12-point font. Your case write-up only needs to address the two questions listed directly above. Please submit your case write-up on Blackboard.