Netflix What I Learned About This Organization

Netflix is a global leader in the provision of an internet television network. The company has approximately 93 million subscribers in over 190 countries throughout the world. Reed Hastings and Marc Randolph established Netflix in 1997 in California. Randolph and Hastings had previously worked together at a different company called Pure Software. Hastings founded Pure Holdings but later sold his part in the company, which was valued at $700 million, and put $2 million in Netflix. Randolph, on the other hand, was the founder of MicroWarehouse which was an electronic mail company (""Netflix: Overview,"" 2017).

Netflix customers do enjoy more than 125 million hours of entertainment in a single day. Netflix customers have the right to watch the kind of program they want and in any corner of the world provided that they are connected to the internet. Consumers have the choice of playing videos, pausing at their convenience, and resuming to watch later without any form of commitments or commercials (Ciara Healy, 2010).

The buyers of Netflix products can be ranked into two categories, the convenient consumers, and the needy customers. The convenient users tend to be young and rely on technology to access title on their schedule while the need customers tend to older and do not rely much on technology like the convenient group, they have a habit of watching certain programming. The target customers seem to be both male and female from the age of 17 to 60 years with an income above 30000 dollars. The company appeals to all racial groups with a variety international and foreign films. The company’s customers simply get the value of their money (Segal, 2014).

What I Learned About This Organization

Firsts, it is quite important in determining the success of an organization. The corporate culture is in many ways a reflection of the leader's priority and values. In Netflix, a leader plays a major role in shaping the organizational culture towards success. Netflix has a strong culture because of the diverse workforce; through this corporate culture, the best employees are attracted and even retained this result into efficient operations, therefore, facilitating the offering of the best services to the clients.

Secondly, leadership is quite important in determining the success of the organization. In Netflix company, there is a democratic form of leadership. Various teams are responsible for making decisions that have an impact on the overall output. Democratic forms of leadership increase morale of the employees a factor that increases productivity (Michel, Lyons, & Cho, 2010).


In the long run, the company’s primary focus should be to dominate and implement online streaming entirely. The company is in a good position because it has already invested in the streaming technology so the best move now should be to expand the number of titles. The management should act as quick as possible to make sure they control in this industry ("Netflix, Inc. (NFLX) Recommendations", 2017).

Moving from streaming while decreasing DVD rentals is a good move because it lower will the cost. Ideally, the new and current customers will use the streaming feature that means that even if the DVD rental services decreases revenues won't fall. If this move is successful Netflix is likely to shut down some of the warehouses that increase cost. When Netflix takes advantage of the streaming, it will gain international customers without incurring so many costs. As the streaming feature expands Netflix should focus on producing more content to increase its bargaining power.

Environmental Issues

The company has affected the environment negatively in many ways. First, the hires and sales DVDs that are time disposed of in off in lakes and oceans after use. The organization has introduced an educational documentary that educates people on the importance of protecting the environment. In future, it is important that the company lays more focus on corporate social responsibility.

Diversity in the Organization

Netflix Inc. has for a long time been known for its diversity, for a long time now the company has remained among the top cable television providers. The company employs people from all background as long as they have what it takes to lead the organization. The management of the company is known for treating employees well and supporting diversity. The democratic form of leadership has been essential in pushing this team to the higher ground regarding productivity. Through leadership effectiveness, the company has gained a competitive advantage over other firms. The company should, however, increase the ratio of women in the firm to increase make the ration 1:1.

Use of Motivation

Netflix founder who is also the chief executive officer Reed Hastings has created a form of the management style that aims at hiring the best employee and also get out of the way. The company's management layout offers the staff makes decision-based on their thought. The company offers various perks, for instance, providing employee vacations for their excellent performance. The company doesn't have a particular clothing policy. Netflix has provided an ideal workplace that ensures that employees produce quality work. In situations where the current employee fails to meet expectations, Netflix provides large packages for quick termination.

Current Organizational leadership

When an organization lacks a focused leadership, it can be a roadblock to the performance of the team. The team’s management and motivation are the core role of the team lead within an organization. While there exist so many leadership models that can be adopted, Netflix Company uses the Hills Team leadership theory which is majorly used for those companies with so many employees. The Hills Team leadership theory provides the management with a better of understanding of the team problems and takes the necessary step or action. This team leadership model contains four layers. The 1st layer is the top layer in the leaders mental model; this level identifies whether the situation demands a watching. The 2nd layer is usually the external and internal leadership level. The 3rd level determines whether the position in the team is task intervention, relational and environmental (Burns, 2012). An organization selects the best function based on the needs of the organization. The diagram below indicates the different layers.

Hill`s Team leadership model ("A Framework for High Performing Teams," 2017)

Efficient use of Communication

Because of effective communication with employees, customers, and shareholders, Netflix has always remained a visionary company. This has enabled the company to maintain focus, therefore, working to create a more sustainable tomorrow. Netflix is in many cases committed to applying research, investment and innovation to take care of the increasing demand and the constantly transforming environment. In this environment, the evolving technology requires a lot of innovation which calls for a visionary leader. In future because of constantly changing environment leadership role is expected, this call for attainment more skills that will make them better tomorrow's leaders. The organization should in future implement an open office layout to allow employees to engage with each other.


A Framework for High Performing Teams. (2017). Retrieved 26 April 2017, from

Burns, J. (2012). Leadership (1st ed.). New York, NY: Open Road Integrated Media.

Ciara Healy, (2010). Netflix in an Academic Library: A Personal Case Study. Library Trends, 58(3), 402-411.

Michel, J., Lyons, B., & Cho, J. (2010). Is the Full-Range Model of Leadership Really a Full-Range Model of Effective Leader Behavior?. Journal Of Leadership & Organizational Studies, 18(4), 493-507.

Netflix: Overview. (2017). Retrieved 8 March 2017, from

Netflix, Inc. (NFLX) Recommendations. (2017). Retrieved 8 March 2017, from

Segal, L. (2014). The decoded company (1st ed.). New York, N.Y.: Portfolio/Penguin.

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