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In a fast moving and complex world of technology, it is crucial that companies keep up to date with the functions and desires of technology. Netflix is an internet television network, which falls into the entertainment industry. As in any type of entertainment, it tends to fall short of meeting all customers’ expectations. Blocker, Stout, Juras, & Cokins, states that total quality management will allow for production of reliable products that exceed customer’ expectations (2016). How does a company exceed customers’ expectations while staying within limits of reasonable spending? It becomes of a challenge from time to time when consumers reconstruct their identity by integrating it with specific situations at that particular time (Platania, M., Platania, S., & Santisi. 2016). The answer is bold innovation. Bold innovations consist of breakthrough products, services and solutions that create growth for the future, this looks beyond tomorrows growth (Cooper, 2011). The company leverages it strengths to its advantages and adds additional attractions / services to exceed customers expectations, as compared to surrounding competitors.

According to Market Watch, when Netflix last increased their subscription prices by 2 dollars it led to larger than expected cancellations (Owens, 2016). Unfortunately Netflix increased prices without increasing services, consumers don't want to pay for less than their money worth. According to Market Watch the price increase was necessary for the company based upon the supply and demand effect of pricing strategies (Owens, 2016). Netflix succeeded in acknowledging their lack of pricing strategy when viewed against competition and their price increase with additional services to enhance customer satisfaction. “Every company must remain diligent, and in constant state of evaluation and adjustment, in order to avoid the various pitfalls that may befall a company’s leadership team and the company” (Hicks, 2010). Total quality management would be of a positive force in helping the company achieve its critical success factors, for this method will ensure products exceed customers expectations while analyzing cost aspects against competitors.

References

Blocher, E. J., Stout, D. E., Juras, P. E., & Cokins, G. 2016. Cost management: A strategic emphasis (7th ed.). Boston, MA: McGraw-Hill.

Cooper, R. 2011. Perspective: The Innovation Dilemma: How to Innovate When the Market Is Mature. The Journal Of Product Innovation Management. John Wiley & Sons, Inc. Retrieved from: http://onlinelibrary.wiley.com.ezproxy.liberty.edu/doi/10.1111/j.1540-5885.2011.00858.x/abstract

Hicks, M. 2010. Accounting for decision making- A study guide. Raleigh, NC: Synergistics, Inc.

Owens, J. 2016. Netflix price increase does damage, but media and subscribers blamed. Market Watch. Retrieved from: http://www.marketwatch.com/story/netflix-price-increases-causing-subscribers-to-sign-off-2016-07-18

Platania, M., Platania, S., & Santisi, G. 2016. Entertainment marketing, experiential consumption and consumer behavior: the determinant of choice of wine in the store. Wine Economics and Policy. Vol. 5, ISS 2.