Case Analysis


Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
Case Analysis
Just from $13/Page
Order Essay

BUAD 301
Case Analysis #3: Netflix Nexus
BUAD 301
Netflix Inc. dropped the most in 7 years after the video-rental service said it lost 800,000 U.S.
subscribers in the third quarter, more than expected, and predicted more cancellations over a price
increase. Investors are trying to gauge the extent of the fallout from the price increase and aborted plan
to put DVD customers on a new service called Qwikster.
Netflix plunged 35 percent to $77.37 in October 2011, the biggest decline since October 2004. The stock
reached a record $298.73 on July 13, according to Bloomberg data, and has lost more than $11 billion in
value since.
The outlook suggests Netflix has been unable to contain a subscriber revolt over a price increase and
aborted plan to force subscribers into separate streaming and DVD services. The company now forecasts
losses in 2012 because of costs to offer content in the U.K. and Ireland, and will delay further expansion
until profitability is restored.
Netflix’s market value has declined from a peak of $15.7 billion in July to $4.06 billion. At least five
analysts today downgraded their ratings on the Los Gatos, California-based company, citing lost
management credibility and a dwindling subscriber base amid strong competition.
The company yesterday projected it would add as many as 52,000 domestic streaming customers over
the holiday period, while losing as many as 3.63 million high-margin DVD subscribers. Netflix added 3.08
million customers globally in the year-earlier period.
Chief Executive Officer Reed Hastings, responding to questions, said he has no plans to step down and
declined to comment on discussions with Netflix directors. He downplayed the likelihood of a big
increase in marketing efforts to win back subscribers.
Excerpted from: Edwards, C. (October 25, 2011). Netflix declines most since 2004 after losing 800,000 subscribers. Bloomberg. Retrieved from
Your Task: Write a one-page case analysis in which you:
Determine the impact of the lost management credibility at Netflix.
Analyze why the issue is significant, what might happen if it is not addressed, and what goals
should be set for any alternatives.
Suggest two alternatives to address the impact you have identified.
Recommend one of these solutions and defend it.
Assessment Measures: Content, Literacy, Audience, Strategy, Style.
While it is necessary to give some details of the case history in your analysis, I am more interested in
your OWN ideas and solutions. The analysis is the point, not repeating data from the case. Be as
specific as possible; a vague, undeveloped analysis will affect your grade significantly.
This assignment is worth 100 points.

Purchase answer to see full

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Order your essay today and save 15% with the discount code DISCOUNT15