patrick Scott WANG CHENG Ca. LEB Esmira Wen Gubatova Michael TIANG Hu Yi. NG
REVEN UE BA NK RU Y PTC Blockbuster, Inc. - Annual Report http: //quicktake. morningstar. com/stocknet/secdocumen ts. aspx? symbol=bloka Netflix, Inc. - Annual Report http: //ir. netflix. com/secfiling. cfm? filing. ID=1065280 -138&CIK=1065280%7 CNetflix
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What’s Next?
Big Data!
Ca. LEB Wen Michael Hu Esmira Gubatova of HOUSE CARDS TIANG Yi. NG Scott CHENG patrick WANG
NEW SERVICE STRATEGY MATRIX FOR NETFLIX OFFERING S Instant streaming service MARKETS CURRENT CUSTOMERS NEW CUSTOMERS Can choose another language Discover Netflix This feature allows them to Social networking interact with friends who were also members Could see movie recommendations from all members
SERVICE BLUEPRINT FOR NETFLIX CUSTOME RS ACTIONS Apply for Payable to be members Watching movie Comparing process movies Recommendatio n and voting Ranking Line of interaction EMPLOYEE ACTIONS (VISIBLE) Install set-top-box for customers Keep date Combine data Make the best movie Combine together Make a decision Line of visibility EMPLOYEE ACTIONS (INVISIBLE) Line of internal interaction SUPPO RT PROCE SS Collect data Transfer payment (bank) Maintain device and network Post office
Recommendation Algorithm
Recommendation Algorithm
Paradigm Shift Heliocentrism Geocentric model
Service Gap Model
3. Interrelationship matrix 2. HOWs: Engineering Characteristics 1. WHATs: Customer requirements 4. Relationship between WHATs and HOWs 6. Prioritized engineering characteristic 5. Prioritized customer requirements
GENERATE ENGINEERING SPECIFICATIONS: HOW WILL THE CUSTOMERS’ REQUIREMENTS BE MET? • A good story………………. Politics type • Good actors………………. . Kevin Spacey • A good director……………. David Fincher • Good timing to watch………. Anytime(Online) • Sensory stimulation………. . Limited
RELATE CUSTOMERS’ REQUIREMENTS TO ENGINEERING SPECIFICATIONS: HOWS MEASURE WHATS?
IDENTIFY AND EVALUATE THE COMPETITION: HOW SATISFIED IS THE CUSTOMER NOW? • For instance, we assumed the ranking as comparing with the movie “Lincoln” : OUR FILM A GOOD STORY LINCOL N Win GOOD ACTORS Win A GOOD DIRECTOR Win GOOD TIMING TO WATCH Win SENSORY STIMULATION Win
IDENTIFY RELATIONSHIPS BETWEEN ENGINEERING REQUIREMENTS: HOW ARE THE HOWS DEPENDENT ON EACH OTHER?
SET ENGINEERING TARGETS: HOW MUCH IS GOOD ENOUGH?
TARGET: REINFORCE POLITICS PLOTS
DOES NETFLIX’S OPERATING STRATEGY WORK IN EASTERN? • Technology in Eastern is not advance as in US, the companies cannot handle “big data”. • People are more likely watch English movies. • It needs to spend a lot of money on the famous director and actors. • The customer’s habit between western and eastern are different. • Other government limitations(Ex: Copyright).
WHAT ARE THE PROBLEMS THAT NETFLIX HAS TO FACE? • The sources of movie. • Market demand.
WHAT IS NETFLIX’S NEXT STEP? • Facing the strong competitors which like Wal-mart provided DVD renting and Amazon and Apple’s online download service, Netflix is going to provide movies download service too. • Faster and easier • Netflix is keep improving their services and systems, and hope to have higher quality services and more movies provide to customers.
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