University MGT540 Assignment 1: Netflix Start-up Analysis Report

This report provides an analysis of Netflix, Inc. as a start-up company, focusing on key aspects such as its industry (digital streaming and mass media), founders, and establishment details. It identifies key stakeholders and their roles, including monetary injections, major operations, governance, and social responsibility. The report explores the core values essential for Netflix's success, including passion, education, innovation, transparency, customer service, and feedback. It also examines potential negative impacts on the company, such as piracy and free-riding, and proposes solutions like providing high-quality, low-cost alternatives and utilizing technology to prevent unauthorized access. The analysis is supported by references to academic and professional sources, providing a comprehensive overview of Netflix's journey and challenges within the dynamic digital streaming market.

Management of Change:
A Special Focus on Netflix

NETFLIX
Industry: Digital Streaming, Mass Media.
Organization: Netflix, Inc.
Founder(s): Reed Hastings and Marc Randolph
Founded:: August 29, 1997, Scott Valley, California.
Headquarter: Los Gatos, California, US. (Dias & Navarro, 2018)
Employees: 7000 (approx.)
Market Cap: 137.7 Billion USD, (Dolan & Kroll, 2017)

Stockholder(s) Stake (%) Shares
owned (units) Total value (USD)
The Vanguard Group, Inc. 7.08% 30,950,104 11,368,592,201
Capital Research &
Management Co. 6.10% 26,646,950 9,787,957,674
Fidelity Management &
Research Co. 5.84% 25,520,596 9,374,225,323
BlackRock Fund Advisors 4.07% 17,774,453 6,528,912,076
SSGA Funds
Management, Inc. 3.71% 16,201,829 5,951,255,828
T. Rowe Price Associates,
Inc. 3.53% 15,450,604 5,675,315,861
Capital Research &
Management Co. 2.87% 12,567,274 4,616,211,086
Jennison Associates LLC 2.03% 8,882,513 3,262,724,675
Baillie Gifford & Co. 1.73% 7,580,210 2,784,362,737
Geode Capital
Management LLC 1.28% 5,610,285 2,060,769,886
Key Stakeholders
(Mazzolini, 2016)

Role of Stakeholders in Start-Ups
• Monetary Injections
• Major Operations
• Governance
• Social Responsibility. (Goodman, Korsunova & Halme, 2017)

Core Values of a Successful Start Up
• Passion: Starting up a business is a hard task as the market is already filled with existing businesses
which constantly will try to eradicate its competitors. So, the most important factor is Passion which
will drive the business from ground level to its Peak.
• Education: Creation of an education based environment within the organization helps the
organization to grow quickly and automatically forming a competitive yet healthy environment.
• Innovation: Innovation is the backbone of any start up. Innovation being the USP of a start up helps
it to leak money out of the economy quickly.
• Transparency- Transparency, both externally and internally helps the organization to avoid minor and
major mistakes creating a healthy discipline within the organization.
• Customer Service- Customers are the ultimate targets of any organization. So, creating an excellent
customer Service will help the organization to take care of customer grievances and engage them for
a longer period of time.
• Feedback: And Finally, feedback which informs the organization about the mistakes it performed
thus providing a window for improvement. (Dias & Navarro, 2018)

Change that can negatively impact a start up
Piracy and Free rider
The biggest problem NETFLIX is facing is piracy. It almost loses around $192 million dollars
every month due to piracy (Ramamoorthy et al., 2016).
On the other hand free riding is another main threat to the company as purchase is made
through one account and content is accessed by multiple individuals.
Solution
Anti-piracy efforts don’t seems to work, so the potential customers should be provided with
high quality and low cost alternatives.
To stop free riding technology has to be used tactically, for instance face lock or retina scan
has to be used instead of email account and password.

REFERENCES
•Dias, M., & Navarro, R. (2018). Is Netflix Dominating Brazil. International Journal of Business and
Management Review, 6(1), 19-32.
https://www.researchgate.net/profile/Murillo_Dias/publication/328414987_IS_NETFLIX_DOMINATIN
G_BRAZIL/links/5bcc8c83a6fdcc03c799af04/IS-NETFLIX-DOMINATING-BRAZIL.pdf
•Dolan, K. A., & Kroll, L. (2017). Forbes 400 2017: Meet the Richest People in America.
http://lwhospitalityadvisors.com/wp-content/uploads/2017/10/forbes.com-Forbes-400-2017-Meet-T
he-Richest-People-In-America.pdf
.
•Goodman, J., Korsunova, A., & Halme, M. (2017). Our collaborative future: Activities and roles of
stakeholders in sustainability oriented innovation.‐ Business Strategy and the environment, 26(6), 731-
753. doi/abs/10.1002/bse.1941
•Mazzolini, P. (2016). Netflix: financial position analysis and evolution in the market for online
streaming services. https://tesi.luiss.it/18543/1/174501_MAZZOLINI_PIERFRANCESCO.pdf.
•Ramamoorthy, K., Ramanouudjam, V., Subramaniam, R. G., & Samuel, J. E. (2016). U.S. Patent
Application No. 14/886,015.

Thank You