With regards to the strategies laid out by Netflix for the years til 2011, they improvised a strategy

early on the market and it turned out to be really beneficial to the company even as of today. With
the booming of streaming services on the post-2000s, Netflix initiated a services that they predicted
will be a huge trend to the environment early on, that’s why even as of today whenever a streaming
site/service is mentioned, Netflix is the one that comes to mind of the general public, mainly to its
advantage of being an early bird. Additionally, the plans they made during 2011 with separating
themselves with their DVD rentals and eventually phasing out their DVD rental services can be
somewhat good considering that the environmental trend of DVD rentals is slowly dying and online
streaming is the new go-to. Add to that is the shift of the sociocultural trend of the public from having
physical copies of their movies through DVDs to watching films wherever they go as long as an
internet connection is present.

However, the strategy, although innovative and beneficial to the modern trend was somewhat poorly
implemented. With the intent of phasing out their rental services, a price hike was considered by the
company to keep the shift of rental to streaming, and recover the loss the rental services will occur
until it phase out. They also coldly separated themselves with their DVD rental divisions and isolated
them for their company plans. With an intention to restructure their own services, the general public
focused more on the price hike rather than the intent of the company, the poor public relations and
responses provided by Netflix on the outburst of the public also didn’t help as it caused more
difficulties on reassembling their new company structure. This management misstep and the internal
mismanagement with their DVD rental division led to falling stock prices and a rather harsh
relationship with its partners to acquire legal streaming rights and thus gave a negative blow to
Netflix despite its well-made plans and seemingly beneficial idea.

The best way of implementing and formulating a new strategy is being able to be transparent on the
changes and decisions the company will undergo. Acting too skeptic, or committing mismanagement
can leave a negative perception to everyone involved in their operations. Employees acting surprised
and eventually losing their jobs, customer dissatisfaction and protest, and uncomfortable relations
with licensors are some of the consequences Netflix had on their poor implementation. Even though,
their plans seem promising and matches the trend of the society, it is still important to value how well
they should implement their strategy and how they interact with the general public regarding the
changes such as the price hike for.