CASE TWO: Investors Abandon Netflix Amid
(I do expect that you do some research on these questions besides the article below; please properly cite your source) (Wikipedia is not an academic source)
1. Which foreign markets has Netflix expanded into What is the basis for choosing these countries first, would you surmise?
2. What are Netflix’s two major business areas? Which one is being emphasized abroad? Why? What are the pros and cons of this?
3. Thinking more broadly, why does internationalization fit or not fit the streaming business, Do the economics of streaming favor internationalization more or less than they favor the internationalization of DVD rentals? What are the? strategic ramifications of this?
4. Overall, can Netflix afford to delay its internationalization strategy to attend to its domestic ailments. Or can it actually not afford to delay its move abroad, even if this means distraction and resources.
5. Read over the letter that Reed Hastings published (I have added the PDF of the letter to blackboard) Pay attention to the part where he explains the company’s strategy. Do you think it will work Why or why not? If you were in charge of Netflix what strategy would you try to implement in the next year Investors Abandon Netflix Amid Subscriber Losses
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