Netflix Operation's Management

Operations Management Final Paper

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Operations Management Final Paper

Professor Lowey-Ball

UBI BA2

Word count: 4344

Table of Content

I. Executive summary        

II. Introduction        

III. Operations and Productivity        

IV. Operations Strategy        

V. Project Management        

VI. Forecasting        

VII. Managing Quality        

VII. Location Strategy        

IX. Layout Strategy        

X. Inventory Management        

XI. Conclusion        

References        

I. Executive summary

In this paper I will provide a deep analysis of the online streaming industry by looking at the success of the largest company in the field: Netflix. The analysis will start by introducing the company and quickly explain the reason why Netflix became what it is today. I will then talk about the different principles of management that Netflix utilizes in order to be so successful. This analysis evaluates all the key elements of operations management currently in place in the company. Recommendations will also be made throughout the analysis on the different aspect operation management. The conclusion will contain all the different aspects of the analysis and will recapitulate all the positive and negative aspect of Netflix’s use of operation management principles.

II. Introduction 

        Netflix was founded in August 1997 by Reed Hastings, CEO and Marc Randolph, Software Executive. The company started as an American movie rental by mail. In 1999 Netflix launched an online subscription services which quickly became their main line of business. It radically changed the way consumers viewed movies and television. Only 4 years later, in 2003, they finally took over the DVD rental market forcing small rental companies to close down.

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    Graph of number of Netflix’s monthly subscriber                                   Graph of Netflix’s yearly revenue

They only started their streaming video platform in 2007. Since then Netflix is the major provider of streaming films and TV shows in the world. They are currently available in approximatively 300 countries. It is only in 2015 that the company decided to go global. They earn now almost 50% of their revenue from global subscriptions. As of today Netflix has almost 80 million monthly subscribers and made a revenue of 6 billion dollars in 2015. We can clearly see that Netflix is a fast growing company, aiming to be the leading, if not the only streaming platform in the world.