Question 1: Why Netflix?

I choose Netflix not just because they are a service-oriented company that is increasingly gaining traction both with subscribers and financial institutions but also because they have created a corporate culture that is driven by innovative ideas and business practices.

The service winners of Netflix center around the ease of use. There are different service winners for different customers. A subscriber doesn't need to drive to a physical store to select a DVD, instead they are able to create a queue online and the movies are delivered in the mail. Recently, Netflix has launched an Instant Queue feature that allows a subscriber to watch a limited amount of movies or shows on their computer or a Netflix-ready device (Xbox 360, PS3).

In terms of service qualifiers, Netflix subscribers need to have internet access to prioritize their queue and a mailing address. Without these, customers would be unable to request and receive DVD's.

Finally, Netflix would experience a loss of subscribers if the mailings took too long to reach the customer. Having realized this, Netflix works hard to ensure a one-day turnaround in receiving and sending out a new DVD to a customer. Additionally, there are over 50 Netflix distribution centers nationwide to ensure timeliness of delivery.