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Cartoon case
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Reference no. IMD-3-2250
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Published in: 2013
Length: 4 pages
Data source: Published sources
Topics: Change management; Corporate communications; Brand launch; Customer relations; Pricing; Marketing
Share a link: https://casecent.re/p/116289
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Abstract

This is part of a case series. In July 2011, after its share price had reached an all-time high, Netflix announced its intention to split the company's DVD rental and on-line movie streaming services by creating two separate businesses, Qwikster.com and Netflix.com. The change in its business model would entail an important price increase. Following angry protests from customers, including a negative Twitter stream, Netflix's CEO and founder Reed Hastings sent subscribers a personalized e-mail of apology which only served to make matters worse. The case describes the events that took place between July and October 2011.
Location:
United States
Industry:
DVD rental and video streaming services
Size:
2011 revenue of USD3.2 billion, 2,348 full-time employees
Other setting(s):
2011
Teaching note
-
Reference no. IMD-3-2246-T
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2024
Version: 25.07.2024
Length: 60 pages
Data source: Published sources
View full details
Cartoon case
-
Reference no. IMD-3-2246
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2011
Revision date: 12-Jul-2016
Length: 4 pages
Data source: Published sources
Topics: Start-up; Entrepreneurship; Innovation; Customer service
View full details
Cartoon case
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Reference no. IMD-3-2277
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2014
Revision date: 1-Mar-2024
Length: 4 pages
Data source: Published sources
Topics: Strategy; Internet; Film entertainment; Innovation; Competitive strategy
View full details
Cartoon case
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Reference no. IMD-7-2155
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2020
Length: 4 pages
Data source: Published sources
Topics: Strategy; Marketing; Global marketing; Digital transformation
View full details
Cartoon case
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Reference no. IMD-7-2499
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Published in: 2024
Length: 4 pages
Data source: Published sources
Topics: Strategy; Marketing; Global marketing; Digital transformation; Digital
View full details

About

Abstract

This is part of a case series. In July 2011, after its share price had reached an all-time high, Netflix announced its intention to split the company's DVD rental and on-line movie streaming services by creating two separate businesses, Qwikster.com and Netflix.com. The change in its business model would entail an important price increase. Following angry protests from customers, including a negative Twitter stream, Netflix's CEO and founder Reed Hastings sent subscribers a personalized e-mail of apology which only served to make matters worse. The case describes the events that took place between July and October 2011.

Settings

Location:
United States
Industry:
DVD rental and video streaming services
Size:
2011 revenue of USD3.2 billion, 2,348 full-time employees
Other setting(s):
2011

Related

Teaching note
-
Reference no. IMD-3-2246-T
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2024
Version: 25.07.2024
Length: 60 pages
Data source: Published sources
View full details
Cartoon case
-
Reference no. IMD-3-2246
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2011
Revision date: 12-Jul-2016
Length: 4 pages
Data source: Published sources
Topics: Start-up; Entrepreneurship; Innovation; Customer service
View full details
Cartoon case
-
Reference no. IMD-3-2277
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2014
Revision date: 1-Mar-2024
Length: 4 pages
Data source: Published sources
Topics: Strategy; Internet; Film entertainment; Innovation; Competitive strategy
View full details
Cartoon case
-
Reference no. IMD-7-2155
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Originally published in: 2020
Length: 4 pages
Data source: Published sources
Topics: Strategy; Marketing; Global marketing; Digital transformation
View full details
Cartoon case
-
Reference no. IMD-7-2499
Subject category: Strategy and General Management
Authors: Stefan Michel (International Institute for Management Development (IMD)); Sarah Von Blumenthal (International Institute for Management Development (IMD))
Published by: International Institute for Management Development (IMD)
Published in: 2024
Length: 4 pages
Data source: Published sources
Topics: Strategy; Marketing; Global marketing; Digital transformation; Digital
View full details