It All Started with a Late Fee

At the beginning of this chapter, you read about how the idea for Netflix came about and how the company chose its business model. Using the information presented in this chapter, you should now be able to answer the following questions:

Questions for Discussion

  1. 3-22. What are some of the primary reasons Netflix has been successful?

  2. 3-23. Netflix is a corporation. Why do you think the firm uses this form of ownership?

  3. 3-24. What threats might derail Netflix’s success? What steps might the firm take today to thwart those threats?

  4. 3-25. Suppose Reed Hastings asked you for advice on how to make Netflix better. What would you tell him?

Ice Cream Headache

If you have ever visited a Cold Stone Creamery, you ...

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