Netflix: reinvention across multiple time periods, reflections and directions for future research

DOI

10.1007/s13162-021-00197-w

Abstract

A modern start-up’s initial success and long-term viability depends upon its overcoming a series of increasingly challenging obstacles. First, it needs to evaluate and modify its product or solution to ensure fit with an intended market. Assuming it truly addresses a pressing customer need, the firm must then create commercial viability. The offering’s feature set, positioning, distribution, pricing, partnerships, and branding all need to be not only established but generate a positive market reaction (Greiner, 1998). In addition, it must ensure that it has the internal capabilities, resources, and business model to manage the business effectively on a day-to-day basis (Zott & Amit, 2008).

If all goes well, the path forward becomes even more difficult. Building upon initial successes, the firm’s leaders look to scale up the business (Picken, 2017). Capital, resource allocation, staffing, and other key decisions all come to the forefront. The firm may test its capabilities via a small-scale regional or partner-based experiment and then attempt a full-blown scale-up. As it does this, early investor pressure for accelerating scaling builds because that is the path to a quick and profitable exit for them. This, however, creates a dilemma for the firm’s founders and leaders. Should they focus on further refining the product or solution that generated the initial momentum, thus solidifying the small-scale success (O’Reilly & Tushman, 2011)? Or should they focus on new products and new markets as paths to faster growth? Focusing on refining the existing product or solution and deepening ties with current customers may limit growth and dash investor expectations, whereas focusing on new products and markets may take attention and resources away from what made the firm successful in the first place.

Document Type

Restricted Article: Campus only access

Publication Date

4-17-2021

Publisher Statement

Copyright © Springer Link.

DOI: https://doi.org/10.1007/s13162-021-00197-w

The definitive version is available at: https://link.springer.com/article/10.1007/s13162-021-00197-w

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