INTRODUCTION

Netflix was founded by Reed Hastings and Marc Randolph in 1997 in Scotts valley,

California. At the time of its formation the video rental business was blooming and Reed

Hastings was personally infuriated with this because he had to pay Blockbusters, a popular

video rental stores an amount of $40 as late fees. This made Hastings determined to find a

better solution for customers so that they do not have to pay a late fee. He looked around and

found that no such company existed. Looking at the popularity of DVD, Hastings decided

that he would create a service that would not only take full use of this growing popularity and

technology, but he also wanted to create a brand with a customer service that was unmatched.

His aim was to remove late fee, requirement of brick and mortar stores and the whole concept

of due dates. He set out on his journey, which was not just to create a new brand in the movie

rental market, but to disrupt the traditional movie rental market and create an entire industry

that would change the way people consume entertainment forever.

With time the company has transformed into a video streaming platform that is accessible

over 190 countries. The company also venture into content production in 2013 and

incentivized itself over other players in the market such as HULU and Amazon Prime.

Netflix is currently the leading internet subscription service for movies and TV shows. As of

2019, Netflix has over 150 million customers and this number been increasing very rapidly.

In the United Stated, Netflix is also the leading provider for DVD by Mail subscriptions, Blu-

ray Discs, and the speed by which these are delivered is phenomenal. Netflix allows its users

to stream the content available on its website through a variety of devices, hence appealing to

the masses. Over the last few years Netflix has ventured into countries such as UK, India, etc.

where it has achieved huge successes by gaining over a million subscribers in the first few

months of its launch.

Business Model of Netflix

When we compare the business model of Netflix to that of other brick and mortar stores like

Blockbuster, the choice of movies and tv shows Netflix provides is huge. Netflix is based

online and is therefore not limited by the constraints of time or space as is the problem faced

by their completion. It is able to provide its customers a wide variety of movies and Tv

Shows whenever and wherever the subscriber needs it. Unlike traditional stores who require

the users to physically visit their stores and rent a movie, Netflix allows DVD-by-mail or

online streaming as per the choice of the subscriber.

Netflix ships DVDs and Blu-ray to its subscribers in US through first class post and the

subscribers can ship them back without any additional charges making the transaction

essentially free to the customer. Netflix maintains good relations with postal companies to

ensure this process is fast and hassle free.

Netflix also offers digital subscription model allowing its users to stream content to any

device hey want. Subscribers can also choose a hybrid plan of online streaming and DVD

rental is they want. The data centers Netflix uses are spread across the world so that the

quality of the content is not lost and the subscribers get value for money.
MISSION STATEMETNT ANALYSIS

Netflix doe not have a published mission statement, but their aim is to improve the

experience for customers, expand their streaming library, and enhance the user experience.

According to the CEO, Reed Hastings the vision for Netflix is

“We promise our customers stellar service, our suppliers a valuable partner, our investors

the prospects of sustained profitable growth, and our employees the allure of huge impact.”

The core strategy of Netflix is to increase the number of subscribers and the content available

globally. Their mission statement is a primary support of its marketing strategies as it

promises exceptional service to all its shareholders. The company is continuously enhancing

customer experience by expanding their service. The mission statement also shows that the

primary aim of the company is to increase its customer base. To achieve this Netflix needs to

be ahead of the competition. Their mission is also to become the top entertainment company

for which they need effective marketing strategies.

One of the most important and promising aspects of the mission statement of Netflix is that is

includes all the stakeholders of the company. Netflix is operating in a oligopoly industry,

where there are only some firms and it is difficult for new companies to come. There are also

significant barriers to entry. However, Netflix’s mission statement shows how the company

aims to achieve its vision.