Are you still watching? A crisis analysis of Netflix

Abstract

Ever since its move towards streaming content online, Netflix is considered a posterchild of aself-disrupting company. However, in late 2021 the company’s stock price lost more than 70%of its value. This study aims to investigate the reasons for the crisis Netflix is facing andassessing whether the company has the ability to handle its current and future challengesthrough the use of the RBV, VRIO and dynamic capabilities concepts used in the context ofstrategic adaptive management as well as crisis management for academic teaching.The dissertation provides an overview of the aforementioned concepts as well asinformation on the market, the company and the crisis of Netflix through secondary datagathered from interviews, newspaper articles, publicly available data as well as the book “ThatWill Never Work: The Birth of Netflix and the Amazing Life of an Idea” by Netflix’s first CEO.The study includes a chapter providing teaching notes for the academic use of this case.Several potential assignments are laid out and answered, bridging the gap between thetheoretical concepts introduced and the information provided on the case, laying out possiblestrategic moves that could save the company and prevent them from following the footsteps ofNokia and Kodak.The conclusion of the case is that Netflix possesses several VRIO resources andtherefore competitive advantages as well as dynamic capabilities mainly due to their reactiveand forward-looking management that has proven its capability of doing what is “best forbusiness” multiple times throughout its history.

Date of Award	3 Jul 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)