HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeNetflix (E): Capture value (Cartoon case)back to Strategy

Case Study

Netflix (E): Capture value (Cartoon case)

By Stefan Michel and Sarah Von Blumenthal

4 pages

October 2023

Order this case study

Reference: IMD-7-2499

This case is part of a series on Netflix. Case (A) discusses the company’s growth until July 2011. Case (B) tells the story of Netflix’s sharp share price decline after it announced it was splitting the business in two and increasing prices. Case (C) covers the years 2012/13, when Netflix found its way back to success. Seeing that the industry bottleneck was shifting from the channel (who can reach the viewers?) to the content (who owns the movie rights?), Netflix started to produce its own TV shows (e.g., House of Cards, Hemlock Grove). Case (D), set in 2020, focuses on a diverse set of strategic challenges Netflix is facing. First, as indicated already in the (C) case, the cost of content through licensing and production continued to increase. Netflix users had to get used to more frequent cancellations of their favorite show. Second, the “streaming war” between Netflix, Disney+, Hulu, HBO Max, Apple TV, Amazon Prime Video and YoutTube was intensifying on two fronts: competition for subscribers and for content. Third, Netflix was increasing its global presence to accelerate economies of scale by introducing new pricing strategies in foreign countries. Fourth, most movies are watched on mobile phones, where a vertical format is more natural than the traditional horizontal format. It was an open question whether movie producers should adopt this trend set by Instagram and TikTok. Thanks to the growing subscriber base, Netflix’s revenue and profitability were increasing. But is the company well equipped for the intensifying “streaming war”?

Learning Objective

Identify and categorize the different strategic challenges Netflix is facing
Infer the changing customer behavior for movie entertainment
Evaluate Netflix’s key resources and capabilities against a variety of aggressive competitors
Assess the importance of economies of scale due to the high and increasing cost of content, both licensed and produced.

Keywords

Strategy, Marketing, Global Marketing, Digital Transformation, Digital

Settings

Northern America, United States of America
Netflix, Media
2020

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Stop running so many AI pilots

In late 2023, when the management team at the consumer packaged goods company Reckitt considered adopting gen AI, potential use cases spanned the business—from drafting presentations to delivering customer support to optimizing procurement contrac...

Artificial Intelligence Strategy

By Goutam Challagalla, Mahwesh Khan and Fabrice Beaulieu

in Harvard Business Review

November-December 2025, vol. 103, issue 6, pp. 90-99

Article

Energy efficiency equals smart strategy, so why the inertia?

Energy efficiency is the fastest and cheapest way to cut emissions. Business leaders must do more to translate words into action.

Change Management Strategy Sustainability

By Clara Camarasa

in I by IMD

Article

How to Fight High US Tariffs - Strategy

With US tariffs on Swiss goods at 39%, Carlos Cordon outlines eight strategic ways to reduce costs and turn protectionism into advantage.

From Wuhan to the boardroom: Dan Luo’s journey to impact

IMD Professor Omar Toulan speaks with Dan Luo at OWP Singapore about driving growth, profitability, and leadership across global brands like Heinz and Lego.

Growth Leadership Performance Measurement Strategy

By Omar Toulan

in I by IMD

Article

Europe should be proud of its world-beating innovation

European innovation can be a force for resilience, transformation and global leadership. And yet it is often overlooked due to the geographical bloc’s fragmented markets, risk-averse culture, regulatory complexity and limited access to growth capi...

Innovation Strategy

By Arturo Bris

in Management Today

17 October 2025

Case Study

DNB Bank: Embracing startups as a growth strategy

Strategy Customer Centricity Business to Business

By Goutam Challagalla, Francis D. Kim and Philip Charles Zerrillo

Article

Hacking Digital 4: How to work across silos

Working in silos is one of the biggest obstacles to digital success. The key to real digital transformation is to align the various business units in the organization. Here’s how to avoid the pitfalls.

Artificial Intelligence Digital

By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser

in I by IMD Brain Circuits

14 October 2025

Article

Hacking Digital 4: How to work across silos

Digital

By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser

in I by IMD

Case Study

Kontor: When VR faces reality. An internal innovator's dilemma

The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded startup or spin-off company. It discusses the genesis and context of Kontor, an internal venture ...

Innovation Strategy

By Jim Pulcrano, Greg Knight, Liming Chen and Michael Pinczuk

Article

Hacking Digital 3: How to develop digital skills within your organization

Learning new digital tools, technologies, and business models presents both short-term and longer-term challenges. Here’s a quick guide to the essentials of getting your people up to speed and beyond.

Digital Technology Management

By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser

in I by IMD

Stop running so many AI pilots

By Goutam Challagalla Mahwesh Khan and Fabrice Beaulieu
in Harvard Business Review November-December 2025, vol. 103, issue 6, pp. 90-99

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Strategy

Browse all topics

Energy efficiency equals smart strategy, so why the inertia?

By Clara Camarasa
in I by IMD

Summary

Energy efficiency is the fastest and cheapest way to cut emissions. Business leaders must do more to translate words into action.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Change Management

Strategy

Sustainability

Browse all topics

From Wuhan to the boardroom: Dan Luo’s journey to impact

By Omar Toulan
in I by IMD

Summary

IMD Professor Omar Toulan speaks with Dan Luo at OWP Singapore about driving growth, profitability, and leadership across global brands like Heinz and Lego.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Growth

Leadership

Performance Measurement

Strategy

Browse all topics

Europe should be proud of its world-beating innovation

By Arturo Bris
in Management Today 17 October 2025

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Innovation

Strategy

Browse all topics

DNB Bank: Embracing startups as a growth strategy

By Goutam Challagalla Francis D. Kim and Philip Charles Zerrillo
Case reference: IMD-2706 ©2025

Summary

The case examines how DNB Bank, Norway's largest financial services company, reshaped its growth strategy by focusing on startups and SMEs, a segment traditionally considered unprofitable. In 2013, DNB launched a bold SME strategy, deliberately choosing a gross approach to win new startups early in their life cycle rather than a net approach focused on the profitability of existing accounts. This strategy, enabled by a significant investment in digitalization and a cultural shift toward customer lifecycle engagement, generated exceptional results and by 2025, the SME segment delivered the highest return on allocated capital. The journey, however, was not linear. A European regulatory crackdown in 2019, following the Danske Bank money laundering scandal, forced DNB to shift its focus from growth to compliance. The bank reallocated 1,000 employees to KYC units, dismantling its startup-friendly onboarding process and causing customer acquisition to stall. As competitors advanced, DNB had to orchestrate a strategic Restart effort to rebuild its SME leadership. This involved launching superior digital tools, providing automated lending decisions within a minute, and renewing its customer-centric focus. By 2025, the recovery was well underway, with one in three Norwegian SMEs banking with DNB. The case challenges students to evaluate DNB's past choices, the critical balance between growth and compliance, and the future of SME banking as AI and digital agents transform customer interactions.

Reference IMD-2706

Organization DNB Bank

Industry Finance and Insurance, Banking

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Customer Centricity

Business to Business

Browse all topics