The History of Netflix
Netflix was formed in California in 1997 by Reed Hastings and Marc Randolph.
2
1998 as the first
DVD rental site.
In 2002,IPO at a
selling price of one
dollar per share
193 million
subscribers
In 2007, Netflix
introduced its
streaming service.

Netflix Analysis
Netflix
Technology
Netflix
Creativity
Netflix
Consumer
Demands
3

Netflix PESTEL Analysis
4

Netflix Porter’s Five Forces Analysis
5
Bargaining Power of
Consumers
Bargaining Power
of Suppliers
Internal
Rivalry
Substitute Products
and Services
Entry of New
Competitors

Netflix’s Business Model
Cutting Out
The
Middleman
Business
Model
Platform
Business
Models
Unlimited
Subscription
Business Model
6

Netflix Business Model
7

Netflix VRIO Analysis
Netflix Inc. VRIO & VRIN Analysis & Table (Resource-Based View)
ORGANIZATIONAL RESOURCES & CAPABILITIES V R I O N
Competitive Disadvantage:
High dependence on third-party entertainment content producers
Competitive Parity or Equality:
Innovativeness ✔
Information technology assets ✔
Temporary Competitive Advantage:
Support and licenses from entertainment content creators and copyright holders ✔ ✔
Unexploited Competitive Advantages:
High potential for online music distribution ✔ ✔ ✔
High potential for online textual content distribution ✔ ✔ ✔
VRIN/VRIO core competencies (Long-Term/Sustained Competitive Advantages):
High equity of the Netflix brand ✔ ✔ ✔ ✔ ✔
Large platform of content producers and consumers ✔ ✔ ✔ ✔ ✔
High capacity for original content creation ✔ ✔ ✔ ✔ ✔
8

Netflix value chain and supply chain
9

Thank You
10