Every day, millions of Americans look forward to the little red envelope in the mail. This envelope soon became branded as the famous Netflix DVD pouch. Early on, Netflix understood that consumers wanted convenience and became the pioneer of mail subscription model for DVD rentals.
Then, when media trends shifted and online streaming became popular, Netflix quickly integrated video streaming into its current model, without causing inconvenience or change to the consumers. A move happily welcomed by the consumers.
Netflix continued to bloom and focus its core strategy on growing a large streaming subscription business within the United States and globally. While staying within its operating margin targets, Netflix was able to improve its customer experience, enhance its user interface, and extend its streaming service to various Internet-connected devices. During its peak, the Netflix (NASDAQ:NFLX) stock saw its high at a little over $304.
With the growing popularity of Internet-delivered content, Netflix realized that home entertainment trends suggest that DVD will become obsolete in the near future. Although it makes perfect business sense to focus on the profitable and blooming business of online streaming, Netflix focused solely on its core strategy and lost sight of the reason for its success...
Read the full article here: http://starlightcommunication.com/2011/09/the-netflix-story-how-once-an-admirable-company-finds-itself-in-a-pr-chaos/