Go to httpwwwnetflixcom Select Investor Relations located at

Go to   http://www.netflix.com

Select Investor Relations (located at bottom of webpage, under Our Company

Select Annual Reports & Proxies (located in left menu)

Select last Annual Report file

Read Form 10-K. 10-K filings

Review and analyze Netflix key strategies. Describe what type of competitive advantage Netflix is currently pursuing? Is the strategy short- or long-term? Why? Does the stock price determine the direction of Netflix? Why? Explain

Solution

Answer:

Netflix Key Strategies:

The Key strategy is to grow its streaming membership business globally within the parameters of its profit margin targets

Improving the customer experience

Perpetually enhancing our user interface and extending our streaming service to more internet-connected screens.

On reviewing its strategies, it is evident that the company has a \"CUSTOMER FIRST APPROACH\" and it believes in facilitating the customers that will generate profit in long run.

Competitive Advantages Netflix is currently pursuing:

Intellectual property claims could be costly and end up in the loss of considerable rights related to,among other things, such as Web site, streaming technology, our recommendation and merchandising technology, title selection processes and marketing activities. We are engaged in legal proceedings that could result us to absorb unexpected cost and could holdup considerable quantity of our top management’s time and attention.

These strategy will be having a minor impact in short term but many benefits / safeguarding will be reaped in long term.

Does the stock price determine the direction of Netflix?Why?

Thanks.