The Administration Starts From The Growth Of The Netflix Empire

The administration starts from the growth of the Netflix Empire

Summary

This essay addresses the beginning, development and achievements of the Netflix company, relating it to the administration, specifically the Reed Hastings Directorate who apart from being its creator directed and directs the company from its beginnings to what it is today today. The achievements and failures that the company in charge was in, although more were the achievements obtained above the competition that the same company gave rise to continue emerging. However, despite these inconveniences, Netflix knew how to cope with the situation and work harder to become the streaming platform so famous that it is today.

Background

1. Entrepreneurs or established companies must identify people’s needs to arrive with a product or service that please these needs or desires, but many times these companies fail in that process because they do not put themselves in the client’s place, something that the creatorNetflix knew how to identify because his idea arose as a result of an experience lived and I notice that many others went through the same, which gave him the advantage of knowing what his target audience needed.

The administration

The administration is in many aspects of everyday life and working life, either in the groups organized by academic works or in small or large companies, of the item that was. In any of the aforementioned activities there is always a person who directs a certain group of people, is the one in charge of directing them to achieve an objective drawn up as a group.

Koontz and O’Donnell considers that the administration is “the direction of a social organism, and its effectiveness in achieving its objectives, based on the ability to lead its members” (Reyes Ponce, 2004, page. 16). For other authors such as Chiavenato (2004) "Administration is the process of planning, organizing, directing and controlling the use of resources to achieve organizational objectives" (Chiavenato, 2007, p. 10). As well as for Henry Fayol, considered by many as the true father of the modern administration, who says that “administering is to provide, organize, send, coordinate and control” (p.16).

The well -used administration can lead to great business and personal successes, such is the case of the successful Streaming Netflix platform that emerged in California in 1997, following a bad experience lived by Reed Hastings in the company of its partner Marc Randolph, who after not returning a VHS of Apollo 13 had to cancel more than due to the delay, in turn noticing that many other people suffered for the same problem every time they rented a film.

Customer needs

"If you do not recognize and respond quickly and efficiently to the needs of consumers, a company could increase its workload, lose business opportunities, and ultimately, increase the level of dissatisfaction of their consumers," they mention it (Gurauand Ranchhod, 2002) in this situation, Hastings and Randolph identified a need in the population of Scotts Valley, specifically in the demand for the rental of films and that they did not like to return them soon, but they should do so if or if for not paying the fine fordelay, it is then that he responds with a much better alternative and decides to create his own film rental company, a product that already existed but he improves it. It was enough to create a website of their brand so that people could choose the film that I would like to rent and this would be sent by postal mail, and the great solution to the problem of films returns that afflicted people of the time then was that with NetflixThey could return the VHS when they wanted to pay $ 15.

Netflix knew how to use the issue of customer’s needs and desires in his favor, it is why he implemented almost from the beginning a personalized service through his cinewatch system that allowed users to have sections within their account for each of the membersof the family, the system suggested content according to the tastes of each family member. In turn, users could score the films so that the company could select the guidelines or films they would have on their billboard, as mentioned in the book of (Joachimsthaler, 2007, p. 31.32).

Netflix’s business was well accepted by people, due to the innovative of the service they offered, which allowed the companyGeneral to win your preference.

According to Molina (2019) "Netflix’s scheme was able to recognize the desires and needs of customers and give them an offer that not only gives you profits but an experience of satisfaction for all genres of the seventh art" (p. 14).

Address and leadership

In its beginnings Netflix had a work team made up of Reed Hastings as Executive Director, Tom Dillon, Operations Director, Neil Hunt, product director, David Hyman, General Lawyer, Leslie Kilgore, Marketing Director, Barry McCarthy, Financial Director,Patty McCord, talents director, Ted Saraonds, content director.

Reed Hastings, was basically the chief of bosses apart from being the creator, a position he was deserved because he had a wide curriculum as the founder of his first company in 1991, Pure Software, which was also the leader, in 1997 he made it aOf the 50 largest companies in the world, but that same year his company was acquired by Rating Software, and then founded, during the same year to Netflix, with goals proposed to improve and increase the year subscribers that passed. Reed was also a member of the California Education Board, as president, he led successful campaigns for public schools. He was president of Edvoice and an active philanthropist. In 1988 he received a MSCS title from the University of Stranford and a Bowdoin College degree in 1983, according to data obtained the old Netflix website.

For Zapata (2004), “A leader is not born, there are no great innate leaders. Leadership arises from a training process, which, although they start from the talents with which one is born, develops with what is learned from others. A person is the result of their thought and emotions and when they subordinate with force to achieve the well -being of others, since the innate recognition of their followers ”(p. 79).

Reed Hastings and Marc Randolph, who with impetus and without giving up managed to increase NetflixWell, Netflix customers prefer them more compared to films produced by large filmmakers.

Continuing with the improvements in 2007 the directors decided to turn Netflix into a streaming platform, bone that users who used to rented videos that were sent to their homes by mail, could now watch movies from their computers with Internet connection without needof downloading it, paying a monthly rate to what they previously paid and with the same custom services for each user.

The success in the Netflix direction by its creators was so much that Reed Hastings in 2005 was included by Times magazine as one of the most influential men in the world, which speaks a lot of itself as a leader who was not born, being so,but training with the experiences that took him to where he is today, as creator of one of the largest streaming platforms worldwide.

Bad decisions

As previously mentioned, a good administration derives in good results, in this case for company, but not everything is glory when administered. Hastings badly planned his strategies for the advance of Netflix which resulted in face.

(Ojer & Capapé) (…) During the summer and autumn of 2011, the company’s panorama was clouded. First, Hastings announced a 60% increase in the price of mixed service (streaming and DVD rental). Later, he communicated the derivation of the DVDs rental service to a different website and with another name: Qwikster. All this, and especially the second movement, generated discomfort among consumers, especially among which they used both services, streaming and rental, since this situation forced them to visit different web pages and maintain different accounts for each subscription. (Page 207)

The Hastings decision was not the most successful, as it caused one of the largest stumbling blocks in Netflix’s trajectory, since from this the company lost 20% of its value in the stock exchange and also many subscribers. "Therefore, Hastings had to admit that they had tried to advance too fast and finally paralyzed the QWIKSTER project before starting it.". (Ojer & Capapé, p. 207).

Despite giving way to the failures in your project, the traces remained. One of the most notorious actions of its mistake was the withdrawal of the Netflix Stars television network, since these were the ones who provided their services through Netflix for the wide content they had between films and series of large filmmakers. In addition, following Netflix’s stumbling.

Despite that bad decision Netflix did not stop growing, that year it ended with more than 23 million subscribers, managing to be among the websites most seen by users, surpassing other platforms such as YouTube, Tudou.com, Hulu, among others. Also that same year Netflix expanded its services to several countries in Latin America and 2012 reached Europe.

For Molina “Internationalization generated Netflixen 2015 more than 78 million members in 50 countries, with more than 130 million hours of programming. His career did not stop and the company chose to apply the transverse integration tactics, which was the magical key to produce countless series, films and documentaries on a large scale until today ”(Page. 16,17).

Many of their documentaries managed to collect recognized actors and their series and films have won international fame, obtaining various awards. They also extended their services to mobile phones.

The success it has achieved is much based on good administration, some of the measures that the company currently takes according to Molina are:

• Internal Processes of the Netflix Organization
• Have correct talents with a high level of responsibility and freedom, where a culture of creativity and self-discipline will be encouraged.
• Apply self-management: your hierarchical staff is trained to give your employees the right decisions at the right time.
• Error 0: It is a priority to be highly persuaded with the corporate goals that were created clear and concise for all equally, without distinction.
• Seek payment of the best salaries in the industry for charges.
• Consider the members of the company suitable to enhance and develop their work every day and that it is more motivating every day.

Conclusions

That a company well administered in all its sections bear very juicy fruits, although the results do not occur at the moment and those that direct it in the process by one or other factors, but the perseverance, perseverance and hard work of the leadersThis is what makes the difference of companies that, like Netflix they seek to go far, but fail along the way.

Bibliography

• Chiavenato, i. (2007). Introduction to the General Theory of Administration. Mexico: Printers binders.
• Joachimsthaler, e. (2007). See the obvious: how to define and execute the future growth strategy in your company. Spain: Deusto.
• Molina, g. (2019). The secrets of the Empire Structure. Spain: Wanceulen.
• Ojer, t., & Capapé, and. (s.F.). New business models in audiovisual content distribution: Netflix’s case.
• Reyes Ponce, to. (2004). Business Administration Theory and Practice. Mexico: Limusa.
• Zurita Zapata, G. (2004). Communication Business Administration. Cochabamba-Bolivia: UMSS Publications.