Business Archives

Netflix’s Approach to Organizational Transparency

Is it a good idea for company executives to share sensitive information with all employees, including finances and employee profiles? What practices does Netflix use to ensure organizational transparency? According to Reed Hastings, the CEO of Netflix, there are many benefits of transparency in the workplace. That’s why at Netflix, they are transparent about financial data, job security, mistakes, and even firings. Let’s look at four specific ways that Netflix practices organizational transparency and the positive outcomes that come from this practice.

Blue Ocean Innovation: Better Value at Low Cost

What is value innovation? How do Kim and Mauborgne define “value innovation” in the context of blue ocean strategy? Value innovation is the cornerstone of Kim and Mauborgne’s blue ocean strategy. The authors clarify that blue ocean innovation is not a matter of merely raising or lowering value in order to raise or lower your costs. Instead, Kim and Mauborgne assert that you need a breakthrough that allows you to offer better value at a lower cost. Keep reading to learn about the concept of blue ocean innovation (or “value innovation”) and how it creates blue oceans through new ideas

Netflix: Innovation Is a 4-Step Process

What is it like to work at Netflix? Does Netflix have an innovative culture? As a company with no vacation or expense policy, Netflix is no stranger to taking an unorthodox approach to management. One of Netflix’s more unique policies is the freedom it gives to its employees to innovate and make risky decisions, despite the chance that they won’t pay off. Keep reading to learn about Netflix’s method of inspiring innovation (what the company calls the “Netflix Innovation Cycle”).

Blue Ocean Strategy: Best Quotes and Passages

Are you looking for Blue Ocean Strategy quotes by Renée Mauborgne and W. Chan Kim? What are some of the most noteworthy passages worth revisiting? In Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne suggest that the answer to competitive problems is to create a “blue ocean.” A blue ocean is a brand-new market for an innovative idea, allowing your company to avoid competing with rivals—because it has no direct rivals. Below is a selection of quotes with explanations to help you put them into context.

Netflix’s Vacation Policy: They Don’t Track Time Off?

How does Netflix’s vacation policy of unlimited time off work? How can managers prevent employees from taking too much time off? One of the non-policies Netflix is known for is its “no vacation policy.” This means that all employees can take as many vacation days as they want without being tracked. Of course, they had to put some safety measures into place to prevent bedlam. Let’s go over how Netflix’s unlimited vacation policy works.

Blue Ocean Strategy: Review & Critical Reception

What is Blue Ocean Strategy about? What is the key premise of W. Chan Kim and Renée Mauborgne’s blue ocean business model? In Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne argue that the key to building a successful business is to create a blue ocean—a brand-new market for an innovative idea. You can create such a market by focusing on your product’s characteristics that customers really care about while discarding the characteristics they don’t. This creates a new product offering that doesn’t currently exist, in a space without direct competitors. Here is our review of Blue Ocean Strategy.

How Neflix’s Expense (Non)Policy Works

How can a company as big as Netflix have such a lenient expense policy? How can Netflix enforce such subjective rules? Netflix’s expense policy basically states that all employees must “act in the company’s best interest” when it comes to travel expenses such as flights, hotels, and dinners. The problem is that each person may have a different idea of what is acceptable and what is extravagant. Here’s how Netflix ironed out the kinks in their expense policy.

What to Do If Your Blue Ocean Turns Into a Red Ocean

What is the difference between a blue ocean and a red ocean market? How do you prevent a blue ocean product from becoming a red ocean? Kim and Mauborgne caution that when you create a blue ocean market, imitators will inevitably arrive, eventually turning it into a red ocean. There are two ways you can respond: 1) prolong your blue ocean, and 2) find a new blue ocean. Let’s consider each of these approaches in turn.

Measuring Customer Experience: The Blue Ocean Way

What are your customers thinking? How do you measure KPI for customer experience? There are many different approaches to measuring customer experience. In their book Blue Ocean Strategy, Renée Mauborgne and W. Chan Kim advise that you use what they call a “buyer utility map,” which is essentially a customer experience scorecard for analyzing how your customer responds to your product at every stage. A blank example of a customer experience scorecard is shown below.

4 Hurdles to Kim and Mauborgne’s Blue Ocean Strategy

Companies With Successful Business Strategies

How do you execute a blue ocean strategy? What are the most common challenges you’re likely to encounter when putting your blue ocean strategy in motion? Once you’ve got a strategy, it’s time to execute it. In Blue Ocean Strategy, Kim and Mauborgne oversee four potential hurdles that you’ll have to overcome to implement a blue ocean strategy at your company and offer advice on how to overcome them. Let’s take a look at each one in turn.