When Strategic Planning Goes Wrong Essay -- Business Management

When strategic Planning Goes WrongNetflix, Inc.Where Are We Going?Strategic initiatives provide a roadmap of how to steer a company towards its visionthe in advance(p) perspective of where the company is going. A glimpse of where Netflix, Inc., the industry leader in photo rentals, was planning to go was revealed in the middle of 2011. What the company did non realize, at the time, was that it was headed for trouble.In July 2011, Netflix, Inc. announced that it would be changing the way its movie rental subscription plans would be priced. In the past, the lowest-priced subscription plan at $9.99which included both DVDs and unlimited video streamingwould now be profligate into two separate plans priced at $7.99 each (See Appendix Key Dates) representing a 60% increase for both aid levels. The next move for the company came in September when it was announced that the DVD rental and video streaming function were going to be split off into two separate companies. The DVD-only avail company would now be called Qwikster, while the video streaming service would remain under the Netflix, Inc name. By October, the company decided that it would scrap the split off initiative and keep the two rental services as they wereback under one company.Why Are We Going This focus?The GoodGiven the nature of the market demand for instant showing offered through streaming media, the initial need to split the companyand the two rental service levelsinto separate entities was a natural direction for Netflix. From an in operation(p) perspective, the two services require different resource capabilities and the expertise to administer them. In the case of the DVD service, this business unit requires assets that follow a more traditional ... ...any, called Qwikster, will be completely separate from the streaming business.October 10 The confederation has killed off Qwikster before the DVD-only service announced in September even launched.Works Cited Lexis Nexis. Corporate Affiliations. N/A. http//0-www.corporateaffiliations.com.bianca.penlib.du.edu/subscriber/companyProfile.asp (accessed April 19, 2012). Fundinguniverse.com. Company Histories & Profiles N Netflix, Inc. 2012. http//www.fundinguniverse.com/company-histories/Netflix-Inc-Company-History.html (accessed April 19, 2012). The Huffington Post. Tech. July 2011. http//www.huffingtonpost.com/2011/07/12/netflix-price-subscription-plan_n_895779.html (accessed April 19, 2012). The Huffington Post. Tech. September 2011. http//www.huffingtonpost.com/2011/09/19/qwikster-netflix-streaming-dvds_n_969135.html (accessed April 19, 2012).