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Course Project Essay

4288 words - 18 pages

Course Project Walt Disney and Netflix
Michael Wilson
Keller Graduate School of Management
Managing Organizational Change
HRM 587
Professor Swift

Course Project Walt Disney and Netflix

Course Project Proposal
For my course project I choose Walt Disney and the Netflix companies. I choose these two companies because I believe they are both going through significant changes in the way they are offering forms of the entertainment they provide. How they respond to the external forces that are requiring them to change has been different based on their resources and the demand their customers have.
One company has many years of providing entertainment to many generations who value ...view middle of the document...

The name Walt Disney stands for quality entertainment for many years ("Disney History," n.d.). The Walt Disney Company is managed by a team of visionary leaders to deliver the company’s commitment to excellence, and inspiring creativity and innovation that is respected throughout the world(Swisher, 2011). One of the ways that the Walt Disney Company has gone through changes was announcing a multiyear agreement with Microsoft to license Walt Disney products on a window based format that would make all Walt Disney video entertainment accessible to any device that was compatible with the windows operating software ("Walt Disney press release," 2004). This vision of understanding of how the changes were coming to the customers of Walt Disney and the many different mediums those customers would use, demonstrates the leadership that the Walt Disney Company has used for many years ("Disney History," n.d.).
Netflix Inc. Netflix got its start in 1997 when Reed Hastings and Marc Randolph co-founded a company that would allow the customers another option for online movie rental. In 1999 Netflix launched a subscription service that offered unlimited movies rentals for one low monthly subscription. This subscription bundled together the mailing of the DVD’s or live streaming on any device that was compatible with the Netflix software. This included gaming devices like Xbox or the Wii systems etc. The mailings of the DVD’s had a cost that was covered by Netflix, not the customer. Initially this was no big deal for Netflix, but as postage cost went higher, it affected Netflix operating costs ("Netflix Timeline," n.d.). In the fall of 2011 Netflix CEO Reed Hastings announced big changes that included a new website, and different pricing for the customers who wanted streaming only, mailing only, or both. These changes were not well thought out and millions of customers reacted swiftly by cancelling their subscriptions. Later on CEO Reed Hastings backtracked and cancelled the new website, but kept the price increase for the customers who still wanted the mailings and streaming option. After a time the millions of customers who left discovered that the price was worth it and returned. Later that same year Netflix Inc. had increased their revenue share of United States online movie business from 1% in 2010 to 44% in 2011. Netflix surpassed Apple Inc. in the online movie download business. Netflix grossed $992 million in 2011 ("stockinvestips," 2012). The changes CEO Reed Hastings made for Netflix remains to be judged. Clearly Reed Hastings did not understand how those changes would be accepted by the millions of customers who cancelled their subscriptions, and the investors who counted on them.

Change images for Walt Disney:
Change Image | Basis of Image | Application to Company #1 | Application to Company #2 | Pressures for Change | Differs from others how? | Unintended consequences from Image |
Director | Management has control - change is...

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