Archive for the ‘Company Strategy’ Category
Netflix Hatches a Hobbled Dinosaur
On Monday, I submitted an article to Seeking Alpha about Netflix’s jarring changes. You can read the whole article at Seeking Alpha but here is the summary:
I agree that Reed’s apology was the right thing to do and was well written, but the pricing change was a tactical misstep and a missed opportunity. The splitting of the business was perhaps the right long term move but feels more about the company than the customer. For such a successful customer focused company, these moves feel pretty jarring. Customers are clearly voting with their feet.
These rapid changes to the customer experience are detrimental to Netflix’s usability and brand. Perhaps these changes will pay off with better margins, more clarity, strategic focus and CEO accountability over the long term. These changes may have been inevitable, but I would have advocated a slower rollout, better communication, more user testing and ongoing site integration.
Full article here: Netflix Creates a Hobbled Dinosaur.
4 Strategically Smart Technology Mergers
I posted a hypothetical piece to Seeking Alpha about tech mergers a month ago – 4 Potential Tech Mergers.
Here is the quick summary:
Oracle (ORCL) should buy Dell (DELL)
Apple (AAPL) should buy Adobe (ADBE)
Amazon (AMZN) should buy Sirius (SIRI)
Microsoft (MSFT) should buy Intuit (INTU)
Read more at Seeking Alpha: 4 Smart Tech Mergers
7 Reasons Why Netflix Will Soundly Beat Amazon in Online Video
I posted another article to Seeking Alpha (where I am currently publishing all stock related posts).
Here is a quick summary:
Amazon has entered the subscription video business. While Amazon may want to win in this space, it may not have the financial will or the strategic necessity. Netflix will fight hard for leadership in this space, since it is an existential issue for it.
Netflix has the momentum and their growth will be dented but not halted. A critical mass of paying users allows for the best and most exclusive content, which reinforces the critical mass of paying users.
The ultimate winners may well be the content producers who have been looking for a credible threat to reduce Netflix's growing clout. While Amazon and Netflix will both continue their amazing growth, both will likely have lower margins because of Amazon's entry. How will that impact on their super-charged, high octane, high-flying stocks? That is another story for another blog post.
See the full post, including my 7 reasons here:
Berk Sure Has A Way 