Question

Strategic Challenges Ahead for Netflix. Netflix’s top management needed to address many issues to maintain the company’s leading position in the home video market. A strategic plan was needed to:

1. Repair the PR damage from the rebranding and price increases of 2011.

2. Focus on growing its subscriber base both at home and abroad.

3. Maintain a healthy cash position to meet the growing content cost obligations.

4. Invest in innovative user interface and streaming technologies to create a solid platform for the shift from DVD delivery to streaming.

Answer 1

1. Repair the PR damage from the rebranding and price increases of 2011.

It is tactical, not Strategic

2. Focus on growing its subscriber base both at home and abroad.

Its the objective not strategy

3. Maintain a healthy cash position to meet the growing content cost obligations.

Not a strategic outlook

4. Invest in innovative user interface and streaming technologies to create a solid platform for the shift from DVD delivery to streaming.

This is a strategic plan, how they can keep the leading position.

Hence option 4