Entrepreneurial Marketing

CHAPTER 10Converging Leadership and Management: Maintaining Values and Increasing Market Value

Reed Hastings, the founder of Netflix, set a vision for the company that involves pursuing financial results while also showing concern for environmental issues. To address emissions from its supply chain, Netflix is funding programs that preserve and restore nature's ability to store carbon dioxide. The corporation invests in projects such as worldwide forest protection.¹

Netflix began as a DVD‐by‐mail rental service that didn't impose late fees if customers kept a movie for a long time. Customers only had to pay a subscription fee to rent the DVD. The movies they wanted to see were mailed to them, along with a prepaid return envelope.²

Over time, Netflix added on‐demand streaming services, which proved to be successful. Following Blockbuster's bankruptcy in 2010, Netflix continued to develop rapidly. During the pandemic, Reed capitalized on chances by employing the correct marketing methods and dramatically increasing the number of customers.³ Netflix brought in 37 million new memberships in 2020 and 18.2 million more subscribers in 2021.

FIGURE 10.1 Leadership and management in the omnihouse model

From the study of Netflix, we learn that leadership is crucial in entrepreneurial marketing. Reed's example shows how he oversaw the firm's beginning and ongoing innovation efforts. ...