Author: thomasm301s12

Supply Chain Management …..the Netflix way

Posted on by thomasm301s12

As a loyal customer of Netflix since 2008, or whenever it became available to stream on Xbox, I have been completely satisfied with my subscription…..until…..the whole Qwikster fiasco.

As was probably the case with almost every subscriber at the time of the price and company changes, I was extremely upset.  I was very happen with the product I was getting and I was extremely happy with the price I was paying for it.  One factor i never noticed until taking Operations Management was how it directly influenced Netflix’s business decisions.

Please check out this article by CNET, http://news.cnet.com/8301-1023_3-57468798-93/netflixs-lost-year-the-inside-story-of-the-price-hike-train-wreck/?tag=mncol;morePosts

…I know it is kind of lengthy, but it really gives the inside look into why Netflix’s CEO did what he did.(regardless of if he was wrong or right)

Netflix success was founded on there efficient structure of Supply Chain Management.  They became the best at delivering movies straight to the customer.  Netflix, with the help from the internet, can claim that they killed the retail movie rental business(anyone remember Blockbuster).  But with success comes ego!  The very strength of Netflix was also going to be its demise for the future.  The CEO Reed Hastings recognized this and wanted to make steps to prepare Netflix to change with the future.

The article does a great job of hammering home the fact that Reed Hastings failure was how and when  he chose to implement his plan for the future.  The greatest threat to Netflix’s strength, its Supply Chain Management, is that Netflix has no real Supply.  Netflix’s product is produced by other companies.  These other companies are starting to steal Netflix’s online model and cut Netflix out or raise its prices.  This reason drove the CEO to want to be the first in providing all online streaming content, because if your first then your the best, right?

When you read every decision, or mistake, Netflix made with a focus on Operations Management, you can sympathize with the CEO’s decision to rush Netflix’s changes.  Reed Hastings wanted to eliminate the biggest cost to Netflix’s Supply Chain, the DVDs, and along the way incidentally got rid of most of their own Management talent.

Do you agree or disagree with CEO Reed Hastings vision for Netflix?

and Is it too late for Netflix?…..are they the new Blockbuster?

     =     

References:

http://news.cnet.com/8301-1023_3-57468798-93/netflixs-lost-year-the-inside-story-of-the-price-hike-train-wreck/?tag=mncol;morePosts

http://matthewmolinari.wordpress.com/2012/02/29/netflix-loses-a-star-supplier/

 

Google’s New Design For The Future

Posted on by thomasm301s12

So, Google recently announced their new design for the future.  The new gadget is a pair of glasses that also functions somewhat like a computer…..

…..see for yourself

As was discussed in class, Google’s recent announcement is an example of Design of Goods and Services.  Google’s new eyewear was a perfect example of product decision and strategy. Google decided to differentiate themselves within the marketplace as well as connecting many of their vast products they already have in the marketplace.

The initial information released about “Project Glass” was that it will function somewhat like a supplemental computer.  I think eventually google hopes it can replace tablets or more specifically smartphones.  Currently, the demos that were available to the public have an in-ear speaker, screen, camera, camcorder, and wi-fi.  Some of the people who tested it believe it will display emails or the web instantly on the screen.  During the Tech show demo Google had a video of skydivers jumping out of a plan recording everything on the eyeglasses.

At first glance of reading and seeing the images from the article I wanted to laugh.  After reading about the product more and learning about how it can potentially replace or connect with multiple google products, it started to make more sense.  After taking a step back I realized that I had the same reaction, as well as many others, when Steve Jobs first introduced the first oversized ipod, or IPAD.  Who’s laughing now.  The Ipad was the perfect example of Product Design and Product strategy being perfectly executed thru operations and product management.

Do you believe in Google’s view of the future?

….heres the demo……     D7TB8b2t3QE  or http://youtu.be/D7TB8b2t3QE

References:

http://www.slate.com/blogs/trending/2012/06/28/project_glass_goes_sky_diving_at_google_i_o.html

http://techcrunch.com/2012/06/27/google-glass-future/

http://www.sfgate.com/technology/dotcommentary/article/Take-a-peek-through-Google-s-Project-Glass-device-3671104.php