NetFlix company Essay Example | Topics and Well Written Essays - 500 words - 1

NetFlix company - Essay Example Another reason why the mission statement of Netflix should be reformulated is because its company philosophy does not appear in the statement. The company’s basic beliefs, values and aspirations are not reflected in their mission statement. What is clear in their statement is where their strategies are directed and what they want to be in the future. The firm’s strategy of increasing its streaming subscription globally is the appropriate strategy for the company. Over time, it is expected that their domestic DVD by mail service to decline significantly in the near future; thus, their strategy to focus on their streaming service is a good move for the company. Netflix has decreased its budget in their DVD business to allocate more to its global streaming business (Netflix, Inc. 8). One can say that this strategy of Netflix has produced the desired results because as of the first quarter of 2012, there was an additional three million streaming subscribers; therefore, reaching a total of 26 million global subscribers (Netflix 1). This strategy further strengthened their position as the world’s leading internet TV network (Netflix 1). The domestic streaming service alone contributed $67 million to the company’s profit, which is 13% contribution margin (Netflix 1). Indeed, the firm’s strategy is providing them a relevant competitive advantage and is working well for them. Another strategy implemented by Netflix that is to their advantage is their continuous move to increase the quantity and quality of their TV shows and movies. Their approach is to sign licensing agreement with TV and movie outfits and major film distributors and producers in order to reinforce their content offerings and have a steady flow of new titles (Netflix 2-3). This is a competitive advantage which they enjoy over their competitors. As