Netflix and its Management Information Systems

One of the companies we have continuously talked about in class is Netflix.  We have read and analyzed their SWOT’s during different stages in their development, examined the growth of their stock, and discussed internal and external events that have had major impacts on its success.  We have also talked about how the emergence of Netflix and the online streaming industry has essentially killed the video rental industry.  As it turns out, Blockbuster, the company that used to be so successful is finally giving up, as the few still existing stores in the United States are shutting down, while Netflix continues to grow.  One of the main reasons why I think Netflix has become so successful, and will continue to be successful in the future is because of its management information systems.  As discussed in class, management information systems help companies make decisions.  One aspect of this is customer relationship management.  Netflix uses management information systems to make their platform more personalized for their users.  Netflix uses management information systems to capture data about their users (based on what they have previously watched) and then uses this data to recommend shows and movies they think their users will be interested in.  This makes their users feel more welcomed on the platform, which in turn prevents them from using different alternatives like Amazon Instant Video or Hulu.

Last us blockbuster video rental stores to close. (2013, November 06). Retrieved from http://www.bbc.co.uk/news/world-us-canada-24844350

Kirschenbaum, D. (Designer). (21, March 2013). How to Watch USA Netflix Streaming in Asia [Web Photo]. Retrieved from http://www.flashrouters.com/blog/2013/03/21/watch-netflix-in-asia/

 

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