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Please note, this document contains excessively enough information, please trim it to reasonable
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also avoid the use of “you” which is featured in this document, you second person reference in place
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Question 1
1.1. The first principle of strategy implementation is to translate the strategy of a
business to operational terms. One tool that can be used for this purpose is a strategic
map. Draw a strategic map for Netflix for 1998 when the company changed its pay-for-
use model into a subscription model which offered a subscription service through the
internet. In your answer, you need to make use of the elements of the Balanced
Scorecard (BSC). (8 marks, of which 1 mark will be awarded for each element of the
BSC and 1 mark for a relevant application of the elements of the Balanced Scorecard to
the case in a strategic map)
In 1998, Netflix changed its systems from pay-to-use model to subscription model that allows
customers to stream through the internet. The following is a diagram for the Netflix map:
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Financial perspective
business Strategic Learning
and growth
perspective
direction perspective
customer
perspective
a) Financial Perspective
This is an idea of increasing organisational revenue base. By implementing a subscription
model through the internet, Netflix hoped to enhance its revenue sources. By growing
subscribers and lowering expenses for DVD rental outlets, the company hoped to achieve
financial sustainability and growth.
b) Learning and Growth Netflix sought to constantly develop its technology and innovation
capabilities in order to stay ahead of competitors and meet evolving customer needs. The
company intended to spend in R&D for its recommendation algorithm and online streaming
services, as well as to cultivate a learning and adaptation culture among its staff.
c) Customer Perspective Netflix wanted to give its users with a convenient and economical
movie rental service. By providing unlimited rentals with no late fees and a user-friendly
interface, the company hoped to boost consumer happiness and loyalty.
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