If you have been following business news in the last few months you know that Netflix is going through rough times. Their loyal customers are cancelling accounts in droves and the stock price that was around $300 just 6 months ago is now hovering around $70, wiping out almost $10 Billion in market value. Ouch!!
So what happened? Well, everything that could go wrong did. On one hand, the business of movie rental is going through massive shift Ė from DVD to streaming video and the competition is increasing with large companies including Apple, Amazon and Google entering the market. On the other hand, Netflix picked wrong time to make changes to their business model and made big gaffes in communicating to their customers.
Make no mistake. Netflix was and still remains one of the most innovative companies. After all, they disrupted the movie rental business and drove Blockbuster, along with smaller rivals, into bankruptcy. What happened to them could happen to any company if they are not careful. But there are important lessons to be learned from their mistakes to ensure you donít end up in similar situation. Letís look at them one at a time.
Read more - http://www.angelbusinessadvisors.com...flix-mistakes/