BIAE3002 Commercialisation Assessment

BIAE3002 Commercialisation Assessment

BIAE3002 Commercialisation Assessment

Case Study Questions:

1 (a). Business Model Design and Innovation, per Chapter 5 page 245 of “Business Model Generation” (Osterwalder & Pigneur), results from one of four objectives:

a. Satisfy market

b. Bring to market

c. Improve market

d. Create market

Choose any three of the four above and provide an associated business model example from the case “The Competitive Advantage of Netflix”. Be sure to specify the specific product that Netflix delivered and the relevant value proposition 

1 (b). With regard to the three chosen examples you have listed for question 1 (a) list a specific challenge that Netflix encountered with  each one (make sure you reference the case and clearly align the challenge with the specific example).

1 (c). What key differentiation did Mike Schuh of Foundation Capital make about Netflix’s business model early in the company’s lifecycle? Hint: All you need to do here is list the one sentence in the case where Mike makes a statement about the type of company Netflix is.

2 (a). The case lists two key features that enabled the success of Netflix’ initial unlimited DVD subscription model. What were they?

2 (b). Successful business model design can be as much about innovation of product and discovery of market as it can be about delivery and internal management and culture. The case makes particular mention of Netflix’ high standards with regard to recruitment, retention and staff turnover and management. Many of Netflix’ “talent” management strategies were (and still are) considered quite radical. List four examples from the case that came about due to Hastings’ targeted “….business culture at Netflix was both intentional and important to the company’s ability to innovate.”

2 (c). When Netflix went public in May 2002 “….Netflix vastly improved its ability to run its core business profitably…”. Considering that statement and the surrounding information in the case:

(i) What was their core business? 

(ii) What was one of the most common complaints at that time?

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