Thursday, February 12, 2009

Secrets of Netflix Success

In the current issue of Fortune (February 2), take a look at the short article, The Movie Man which discusses the success of Netflix. I also liked the accompanying sidebar on Reed Hastings and the Four Secrets of His Success. Here are his keys with my parenthetical comments:

1. Target a specific niche (which includes being sure that there is a specific pain in the marketplace…and make sure that the pain is real and substantial)
2. Stay flexible (while your focus has to be the short term, you also have to think of the long term viability of your enterprise. Is your product or service a one-hit wonder that will be overtaken by the marketplace?)
3. Never underestimate the competition (or put another way, there is always competition even when you are the first in the marketplace because consumers always have other places to spend their money)
4. There are no shortcuts (Amen!)

No comments:

Post a Comment