Netflix Operations Management Report - 4633 Words

NETFLIX OPERATIONS MANAGEMENT REPORT TABLE OF CONTENTS Executive SummaryÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…2 IntroductionÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….3 Netflix Process StrategyÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…3 Competitive ClimateÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..5 Competitive StrategyÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….7 Inventory ManagementÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…10 Supply-Chain ManagementÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….11 Management CritiqueÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…12 Future InnovationÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..14 ConclusionÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….16 APPENDIX Exhibit 1 Ââ€" Process Flow DiagramÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….A-1 Exhibit 2 Ââ€" Video Market ChartÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..A-2 Exhibit 3 Ââ€" House of QualityÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…A-3 Exhibit 4 Ââ€" Graph of the Pareto PrincipleÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..A-3 Exhibit 5 Ââ€" Inventory Flow†¦show more content†¦Netflix is exceptional in this process strategy which is vital to their success. Not only does these just-in-time delivery systems reduce inventories but also increases customer satisfaction. This does however increase the amount of pressure on the software to work correctly all of the time. In order to increase the reliability of this software there are redundancies added as well as continual internal inspection. The redundancies are in place to double check that the correct orders are being sent out to the correct addresses. The inspection is done randomly but frequently at the source to monitor the accuracy of the software and the efficiency of DVD distribution. These extra efforts ensure the quality of service and customer fulfillment which effectively has allowed Netflix to gain the lead market share. Competitive Climate There are many competitors for the entertainment dollars of the consumer. Not only does Netflix compete with other in-home filmed entertainment companies like Blockbuster, but also with cable and subscription television, as well as with retail stores which sell DVDs like Amazon. The DVD format for in home entertainment viewing has become increasingly popular. Over the last four years DVD sales has overpasses the sales of the VHS format and continues to grow. Exhibit-2 is a chart that shows the growth of DVD household in comparison to VHR households over the last ten years. Because NetflixShow MoreRelatedNetflix Is The Worlds Leading Internet Television Network1149 Words   |  5 PagesErnst Young LLP (2015), Netflix â€Å"is the world’s leading Internet television network with over 57 million streaming members in nearly 50 countries (p. 1).† Since its launch in 2007, Netflix has expanded streaming services internationally into Canada, Latin A merica, and Europe (Ernst Young LLP, 2015). 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To develop a clear idea of the entertainment industry, this paper explores the background of Netflix Inc. and the present market conditions of its competitors. This paper finds that Netflix Inc. is the fastest growing online entertainment platform in the market. However, due to the nature of the industry it