Netflix Innovation Case Study

InnoTecTing- The combination that could take your business to the next level

The success of an organization depends on multiple factors. While strategy, human resources and company culture form the key factors for the success of an organization, there are other important factors that are needed to take the organization’s success to the next level.

Success doesn’t imply simply gaining monetary benefits but adding value to the business which would benefit both the organization and its consumer base. And how could one add value to its business without innovating. And how could those innovations help the consumer base if they aren’t aware of the innovations. That’s where marketing comes to the picture.

To quote Peter Drucker, “There are only two

An excellent example is Netflix, which became a huge success because it continued to innovate. Back in 1980s, Blockbuster, a video rental shop chain was a huge hit among the masses where people could rent videos from thousands of available titles by visiting a store nearest to them. Netflix, started in 1997, knew that in order to thrive in the video business world, they would have to adopt a different approach and that resulted in the inception of mail-order delivery system where customers could rent videos from the comfort of their homes, which became a huge hit and resulted in losses for blockbuster which was left for bankruptcy and was bought by Dish network at a bankruptcy auction for about $320 million. Lack of innovation killed

With the rise of YouTube and other video streaming sites, Netflix recognized that online video streaming would be the next innovation frontier and invested heavily in it. The result: As of October 2015, Netflix has 69.17 million subscribers with more than $5.50 billion dollar in revenue, 17 times more than how much blockbuster was sold for. Innovation made all the difference.

Blockbuster was just one example. There are multiple other companies which failed due to lack of innovation. These include famous names like Border books(Book store), Polaroid(Instant cameras) , Eastman Kodak(Camera films), Motorola and Nokia(Phones) which failed due to lack of innovation and sticking with the same technologies resulting in losing their edge in the markets and finally shutting down its operations. If continuous innovational practices were promoted in these companies, the situation would have been different.

Protection: The intangible assets of an organization are as important as the tangible assets. An innovation without protection is similar to an expensive jewel out in the open without anyone to safeguard it- It could be stolen at any