Case study Articles:
Netflix Backs Out of Plan to Develop Blockbuster Videogame. The Wall Street Journal, October 22, 2024.
Can Netflix Keep Flexing Its Pricing Muscle. The Wall Street Journal, October 18, 2024.
How Everyone Got Lost in Netflixs Endless Library. New York Times, October 7, 2024.
The Case for Optimism in Hollywood. Bloomberg BusinessWeek, October 2024.
World Limit: No more than around 2,000 words (about four pages, single spaced with 12-point font and normal margins)
Using what you know about strategic management, analyze Netflixs decision to end its development of its Triple-A videogame (see Article 1). In your analysis, consider the firms current performance (Article 2), its historical development (Article 3), and its industry environment (Article 4), as well as your own knowledge about the company.
How should Netflix participate in videogames? What are its strategic options? Should it reverse its decision to develop a Triple-A game, pursue another option, or perhaps exit the segment all together? Defend your position.
Guest service Case:The Importance of Training and Working with Others: A case of resolving Guest Issues
Some Case Facts:
Number of rooms: 1,102 (large hotel); Location: San Diego, CA; Meeting Space=130,000 sq. ft. Group Hosting Capacity: 2,600 individuals; Event: Annual Hospitality Meeting (650 attendees)
Main Actors: Jason and Mike (Guests); Jessica (Guest Services Associate); Chris (Hotel Ownership)
Case Questions and Activities to be Completed
What could Jason or Mike have done to prevent or alleviate the problems that occurred?
Try to propose at least 3 suggestions. Make sure you list those suggestions as a, b and c and explain each of them. Underline the keyword (concept) in each suggestion. For example: a. Early notice/warning Sally should have been contacted..
How do you feel Jessica did in handling the situation? Explain. What could she have done better? Lists and briefly discuss 3 things.
After you answer the first part of the question, in part 2 (just like Question 1) try to propose at least 3 things that Jessica could have done better.
How do you feel Chris did in handling the situation? What could he have been done better?
You can respond to this question similarly to Questions 1 and 2. You can take a macro perspective and discuss how hotel companies (which own multiple hotels) can do a better job in handling customer complaints across hotel properties. Or you can take a single-hotel property approach and discuss how a given hotel can handle complaints.
Ultimately, among all the actors in the case, who do you feel is responsible for the issues that have arisen in this case and why?
Full Answer Section
Industry Environment
The video game industry is highly competitive, dominated by established players like Sony, Microsoft, and Nintendo. These companies have significant resources, brand recognition, and established distribution channels. Breaking into this market as a newcomer is a daunting challenge.
Strategic Options for Netflix in the Video Game Market
Given these factors, Netflix may consider the following strategic options:
-
Mobile and Casual Games:
- Focus on developing mobile and casual games that align with its core competency in content creation.
- Leverage its existing user base and brand recognition to attract gamers.
- Partner with established game developers to expedite development and distribution.
-
Game Streaming Service:
- Explore the potential of game streaming, similar to its video streaming service.
- This could involve licensing games from other publishers or developing exclusive titles.
- However, this would require significant investments in infrastructure and technology.
-
Exit the Video Game Market:
- If the company finds that the video game market is not a viable long-term opportunity, it may choose to exit the segment altogether.
- This would allow Netflix to focus on its core streaming business and other potential growth areas.
The Case for Exit
Given the challenges and complexities of the video game industry, Netflix may be better off focusing on its core competency of streaming video content. By exiting the video game market, the company can avoid significant investments and potential risks.
Analyzing the Guest Service Case
What Jason and Mike Could Have Done Better: a. Early Communication: They could have proactively communicated their concerns to the hotel staff instead of waiting until the issue escalated. b. Documentation: They could have documented their issues, including specific details and dates, to strengthen their case. c. Escalation: If their concerns were not addressed by the front-line staff, they could have escalated the issue to a higher-level manager.
Jessica's Performance and Potential Improvements: a. Active Listening: Jessica could have listened more actively to the guests' concerns and empathized with their situation. b. Problem-Solving: She could have taken a more proactive approach to problem-solving, rather than simply apologizing and offering generic solutions. c. Follow-up: She could have followed up with the guests to ensure that their issues were resolved and to apologize for any inconvenience caused.
Chris's Role and Potential Improvements: a. Empowering Front-Line Staff: Chris could empower front-line staff to make decisions and resolve guest issues promptly. b. Effective Training: He could invest in training programs to equip staff with the skills and knowledge needed to handle guest complaints effectively. c. Guest Feedback Mechanisms: Implement a system for collecting and analyzing guest feedback to identify areas for improvement.
Ultimately, the responsibility for the issues lies with the hotel management. Chris, as the hotel owner, is ultimately responsible for ensuring that guests have a positive experience. However, front-line staff, like Jessica, also play a crucial role in resolving guest issues.
By addressing the root causes of the problem, such as inadequate training, poor communication, and a lack of empowerment for front-line staff, the hotel can improve its guest service and prevent similar issues from occurring in the future.
Sample Answer
Netflix's decision to abandon its Triple-A video game development project is a strategic pivot that reflects a complex interplay of factors. To understand this decision, we must consider the company's current performance, historical development, and the broader industry environment.
Current Performance and Historical Development
Netflix has experienced significant growth in recent years, driven by its successful streaming service. However, the company has faced challenges in maintaining subscriber growth and has sought to diversify its revenue streams. Video games were seen as a potential avenue for growth, particularly in the lucrative gaming market.