Problem
Do you agree with their analysis? Did you find something else about the organizational change effort that you can add to the conversation? To the answer below.
Netflix began operations in 1997 with the intention of providing users with a streaming video library that included both movies and television shows (Profits&, 2019). Ten years later, in 2007, Netflix started streaming its content online rather than mailing DVDs to its customers (Profits&, 2019). Streaming movies and television shows is now the norm, but before the beginning of the 2000s, the transition to streaming products was only starting to become more widespread (Profits&, 2019). It is really unusual in this day and age to come across someone who does not have a membership to the streaming service Netflix. The factors that drive change are those that explain why an organization has to make a change (Whelan-Berry & Somerville, 2010). The most important factors that led to Netflix's transformation were the world's growing reliance on digital technology, which rendered DVDs obsolete as consumers increasingly turned to online streaming for their media consumption (Profits&, 2019). These drivers were essential for Netflix since the company's primary business was the distribution of DVDs, and DVDs were fast approaching obsolescence as an increasing number of people stopped using them. Therefore, in order for them to survive, they needed to make some basic improvements to their organizational structure, which they began to execute in the year 2007. (Profits&, 2019).
Everyone involved is affected in some way by the fact that transformation is necessary. The board of directors, in particular, would suffer damage since, in the end, consumers and other stakeholders will turn to the board of directors of a company for answers. People are still interested in watching television shows and motion pictures, despite the fact that society is moving toward the adoption of digital services as a whole, which is the primary distinction between the current scenario and the ideal one (Profits&, 2019). The effort to undergo digital transformation is being undertaken with the intention of catering to the ever-evolving needs of today's society. Netflix asserts that shifts in customer behavior and preferences have necessitated the implementation of a whole new business model and distribution system in order to meet the needs of its customers. Customers no longer use DVDs, much alone send mail, thus if Netflix continued to distribute DVDs using their previous method-shipping them by postmail-the company probably would not exist today. Customers no longer use DVDs, and postmail is even less common.