netflix

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Netflix Case Study
Question One
The company’s primary strategy involves the use of innovation to provide high-quality services to customers (Stanford Graduate School of Business). The company continuously evolves through new ideas that are focused on improving the customer experience and beating the competition as a result.
Question Two
Netflix has a culture that is focused on performance (Stanford Graduate School of Business). The company hires outstanding employees and motivates them to give their best to the organization by giving them a great deal of autonomy and freedom in how they choose to do their jobs.
Question Three
The company’s organizational strategy and culture are aligned (Stanford Graduate School of Business). By hiring the outstanding employees and motivating them to give their best to the organization, the company can achieve its strategy of continuously innovating for growth.
Question Four
Netflix uses a differentiation strategy (Stanford Graduate School of Business). The company provides differentiated services to customers in comparison to those offered by the competition. From the beginning, Netflix adopted customer-friendly terms not offered by the competition and had over time distinguished itself as a customer-centered organization.
Question Five
Netflix uses the strategy of a prospector (Stanford Graduate School of Business). The company is always looking for new opportunities and ways of improving the quality of service it offers in the market.

The company relies on innovation to identify ways of dealing with emerging environmental trends.
Question Six
The company provides a compensation mix that allows employees to make their allocation of the amounts they intend to receive regarding cash and equity (Stanford Graduate School of Business). This aids in attracting employees interested in the long-term growth of the company, while at the same time aiding in the motivation and retention of employees who are interested in short-term gains.
Question Seven
The company’s compensation mix is made up of cash and equity components (Stanford Graduate School of Business). Unlike other companies, employees have the freedom to decide how their total compensation should be divided into the two components. Cash bonuses were not provided but were instead added to each employee’s total compensation.
Question Eight
Netflix’ compensation strategy is in line with the company’s culture, strategy and business model (Stanford Graduate School of Business). The compensation program aids the company to attract outstanding employees who are interested in the long-term growth of the company. It consequently translates into innovation and growth which is in line with the organization’s strategy and business model.
Works Cited
BIBLIOGRAPHY Stanford Graduate School of Business. Equity on Demand: The Netflix Approach to Compensation. 2010.