A argument Case Analysis
Symptoms
In September 2011, CEO Reed battle of Hastings and fellow executives made a decision to increase their judge 60%, which has led to client dissatisfaction, increase in more competition, and loss of revenue
The reports show that after the price increase shargons dropped a substantial amount (15%).
Customers became dissatisfied because of the price increase and as a result canceled t here membership (2.5 million canceled and project to be over 6.5 million by end of quarter).
challenger has increased due to the fact that their prices are no continuing competitive and has given blockbuster to come in and suck up all the dissatisfied customers as their subscribers.
Problems
The first actionable worry is the increase in pricing for the service that we provide here at Netflix. Netflix has dropped 15% in heavy trading sway and has also lost over 2.5 million subscribers and projected to support another 6.5 million due to the immense price jump. As you can see by reading the symptoms the paradox in pricing is the major reason why revenue has dropped in the last year and is continue to fall.
The price increase has caused customers to afterthought their subscription to the company as most customers believe that watching movies is a pass time and not a necessity.
Another problem the company is facing is the decline in market share. grocery store shares have been declining due to the fact that subscriptions are slow decreasing. Our competitors are offering the same products and service in a much lower price than Netflix. The CEO, Reed Hastings and other Netflix executives are currently selling off a lot of their feature stock in the company. The companys stock is straight off losing value which has to be regained.
Problem Analysis
Alternatives
our analysis has three symptoms: customer dissatisfaction, increase in price, and decrease in market shares. by dint of our reports, we see that all this leads to the...If you want to get a estimable essay, order it on our website: Orderessay
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