SUMBUL MUGHAL

MBA CASE STUDY 2019

MANAGERIAL COMMUNICATION

SUBMITTED TO: Dr. HASSAN

FRIDAY, DECEMBER 6, 2019

NETFLIX: THE PUBLIC RELATIONS BOX

OFFICE FLOP
CASE: NETFLIX: THE PUBLIC RELATIONS BOX OFFICE FLOP

Answers to the questions asked in the case:

1. What further business strategy Netflix would develop and how it would
address its customers? What would be the communication plan?

(a)BUSINESS STRATEGIES

Following would be the business strategies that Netflix would develop:

 Changing the name of the service:

As the title of DVD service “Qwikster” is creating confusion, so Netflix
will change the name to Quickster DVD service.
 Change in price:
Netflix will make some changes in prices as its one of the reasons of
customers’ anger. We will lower the price for online streaming but
the price for DVDs service will remain same.
 Creating integrated website:
Netflix will create an integrated website where customers could
manage both DVDs and online streaming from the same queue as it
is inconvenient for the customers to manage two different accounts
at two different websites.
(b) COMMUNICATION PLAN FOR CUSTOMERS AND INVESTORS

All dear customers and investors,

I owe an apology to all for the decision I took recently.

 PROBLEM AND THE CONSEQUENCES

As it is obvious that due to change in our business structure, our
customers are unsatisfied and unhappy and they are more wrathful
because we didn’t communicate with them the decision we took. We
extremely apologize for not taking our customers and investors into
confidence before making dividing our business into two different
units.

 EXPLANATION AND CONSEQUENCES

Netflix serves huge number of subscribers, the number is round
about 20 million, half of which consists of those who use online
streaming and half buy DVDs through mail service. Considering this
fact, Netflix believed that it would be much better to divide our
business into two separate business units i.e. online streaming and
DVDs service named as “Qwikster”
Our intention was just to make things simpler. But we
have noticed that our customers are not just angry on such business
division but are also facing difficulty while using two different
accounts. So for their convenience we believe that it would be easy
for customers to handle dual accounts if we form an integrated
website as cited above. Not only this, we are also working on other
price related issues.
We know that it’s difficult for you all to accept this abrupt change but
I hope that you will soon find our decision in your best interests

Respectfully,
Reed Hastings, Co- Founder and CEO, Netflix