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EMS Consulting
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Strategic Plan
Three-Year Plan: Staying Competitive in a Dynamic Market

Emilee Anderson, Morgan Hall, Vincent Nelson
GBA 490 – 003
Dr. Ron Dulek
February 28, 2013
Table of Contents
Executive Summary ……………………………………………………………………………. 3

Issues and Recommendations …………………………………………………………………. 3

Industry Overview ……………………………………………………………………………... 5

Company Overview ……………………………………………………………………………. 6

Exhibit 1 – Five Forces Model of Competition ……………………………………………….. 8

Exhibit 2 – Driving Forces …………………………………………………………………… 10

Exhibit 3 – Key Success Factors ……………………………………………………………... 11

Exhibit 4 –
So not having the latest titles at the earliest time is unappealing for this personality type.
In an attempt to remedy this problem we recommend that Netflix partner with various entertainment studios to acquire the licensing needed to release their movies online the same time the DVD versions are released. This is going to be costly and Netflix will have to decide whether to absorb the cost or pass it onto the customer. If Netflix decides to pass that cost onto the subscribers then it is our recommendation that they do on an as needed basis. Meaning that instead of raising prices across the board, offer a premium package that includes the new movies, or give the subscriber the option to pay for each “new release” when they want to watch it. As in, for each newly released movie the customer must pay a $.99 fee.
Industry Overview By year end 2010, more than 85% of United States households had one or more DVD players while an even larger number had combination DVD players/recorders. Since 2000, the in-home movie viewing experience has transformed drastically. Due to the introduction of new technology and electronic products, consumers are able to view movies and television shows from almost anywhere. A wide variety of new and existing distribution channels and providers increased consumers’ ability to obtain or view videos and television shows. Some examples of these options include: purchasing from