, perpetuity growth rate, and G&A expense growth rate. Which challenge will be the easiest to address? Premium Our case solution is based on Case Study Method expertise & our global insights.. Strategy & Execution Case Study | Authors :: Sayan Chatterjee, Elizabeth Carroll, David M. Spencer A fall in the discount rate will increase the present values of revenues and costs, and once again, the effect on the present value of revenues is much greater than the present value of costs. Question: Please answer the following case questions based off of the "Netflix" case: Why do you think that Netflix's changes to its pricing configuration were so problematic? 3  Pages, "Review Case Study 1 Netflix And Answer The Five Questions", the online video market? Although Netflix currently has a high acquisition cost per subscriber, it is necessary for the company to continue acquiring new subscribers in order to increase the company’s market share. It provides subscribers various features to encourage them to stay with the company. Actually, the average Netflix consumer is a 35 years old woman, with an income of up to $75,000. 1.5 line spacing. See the answer. ensure the company will achieve stability by maintaining customer appreciation and satisfaction, services for a flat fee to all subscribers. Premium Note: Minimum word count for each numbered question is 200 to 250 words. Reed Hastings – Netflix (Read Case Study from page 211 to 213 of Lussier textbook 6 th Ed): worth 50 pts. 1.Competitve Rivalry: Competition within the same industry. Like most companies Netflix has also experienced it share of ups and downs with their customers. OR NETFLIX Why? 6  Pages. Also, the longer Netflix retains its subscribers, the higher the probability that subscribers’ loyalty develops. Times New Roman. Dec. 8, 2020. Change Management Case Study Questions And Answers. In order to increase the cash flow and raise profit, we would suggest Netflix enter into revenue-sharing agreements with famous and profitable movie studios. Market failures are often associated with   time-inconsistent preferences, information asymmetries, non-competitive markets,   principal-agent problems,   externalities, or the public. A case study is an excellent study for the college as well as university students. Questions.pdf from BUSINESS 3305 at University of Houston, Downtown. And in this situation employees will end up with reduced hours, pay cuts, less pay raise and bad working environments. All Rights Reserved. Two pages: 12 Font. You 2)Read the questions relating to the case: After a first time reading of the case study, reading the questions pertaining to it, will help you know what to look out for in the case. Read Case #28- Netflix and answer the following questions: (each question its own subsection) 1. View Notes - netflix_case_study from BUSINESS 322 at Jefferson Alt High School. Hence, the potential brand image will be damaged,  and will result in a brand change  perception  that has been linked to the average worker  with middle to low income class. Netflix plans to achieve its long-run objectives by building and enhancing customers’ brand loyalty in Netflix. marketing is that sellers may sell features, but buyers essentially buy benefits. And the positive cash flows that Netflix made for the Year 5 and Year 6 are $12,219 and $23,235 respectively. It is a comprehensive written analysis that has an accompanying power point. NetflixLauren J. Uphouse November 5, 2012 2. These changes also affected the total Netflix cash flows. [Author] Subscriber dropping after the first month is 20%,  Dropping after sixth month 32% and retaining a subscriber is 48% which is quite realistic. 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