1- Based on a SWOT analysis, which of the following is not one of the threats to Netflix's future prosperity?
A-The entry of more movie rental competitors in the emerging VOD segment of this market.
B-Netflix has no presence in the retail store segment of the video rental market (where DVD rental revenues are currently the largest).
C-Movie studios and DVD retailers are lowering the price of movie DVDs , making it more attractive to purchase rather than rent them.
D-Growing use of file-sharing to pirate movies.
2- Which of the following is not true about Netflix's financial performance?
A-Netflix has no long-term debt.
B-Net profits have grown even more quickly than revenues (CAGR above 80%) leading to an increasing ROS ratio.
C-Netflix's gross profits have been growing even faster than its net profits.
D-Revenues have grown quickly (79% CAGR) and consistently from 2000-2007
3- Which of the following is not one of the top priority issues Blockbuster management needs to address?
A-Can Blockbuster revitalize store traffic and store sales?
B-Should Blockbuster begin a long-term effort to migrate its business to online subscriptions and digital delivery?
C-How can Blockbuster close the gap with Netflix in its efforts to build its digital delivery capabilities?
D-Should Blockbuster expand internationally?
4-Which of the following is not one of the top priority issues Netflix management needs to address?
A-How can Netflix improve its delivery management system?
B-Should Netflix expand internationally?
C-What can Netflix do to curtail the growing number of subscriber cancellations?
D-How can Netflix attract new subscribers (continued subscriber growth is key to the company's long-term success)?