2 months ago Netflix has announced to separate DVD and streaming options. Long story short, Netflix customers were outraged by Netflix's sudden move on their price change, which caused the loss of more than 1M subscribers in a short period of time. In addition, their stock went down more than 50% within just two months. Recently, the CEO has officially apologized to the public, but that wasn't enough to get their customers back. Should the board replace their CEO? In my opinion, I still think he's a great leader.... but in business, board will try everything to save their share and their company asset. this is a tricky one... What do you guys think?
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I think everyone deserves a second chance.
There are three different mistakes that you can make in a company:
1) public mistake (towards the customer)
2) internal mistake (eg. Borders, Microsoft, and etc..)
3) personal mistake (eg. the ceo cheats on his wife... and so on..)
In my opinion, #1 is the worst mistake that you can make, and that's what NETFLIX did. You don't ever touch that button to outrage your customers. The company might forgive the CEO and whatever... but it all comes down to the result. The CEO should do his best to reinstate the company or resign and step down from his position. Sometimes, one man can bring down the whole ship. Netflix is still a new textile company. I'm hoping the best for him.
So, my answer is no. Of course not. The board should trust the CEO, and allow him to do his job. Is it going to be another blockbuster? Nope. Blockbuster was just stuck up and they were not willing to listen to their customers.
There are three different mistakes that you can make in a company:
1) public mistake (towards the customer)
2) internal mistake (eg. Borders, Microsoft, and etc..)
3) personal mistake (eg. the ceo cheats on his wife... and so on..)
In my opinion, #1 is the worst mistake that you can make, and that's what NETFLIX did. You don't ever touch that button to outrage your customers. The company might forgive the CEO and whatever... but it all comes down to the result. The CEO should do his best to reinstate the company or resign and step down from his position. Sometimes, one man can bring down the whole ship. Netflix is still a new textile company. I'm hoping the best for him.
So, my answer is no. Of course not. The board should trust the CEO, and allow him to do his job. Is it going to be another blockbuster? Nope. Blockbuster was just stuck up and they were not willing to listen to their customers.
Advised by jino
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If it ain't broke, don't fix it! The CEO should be fired. It is his vision where the company is headed and obviously customers are upset with his vision and direction. His goal of creating two companies, Netflix and Qwikster, is making things less convenient for customers and more costly. The companies previous model was working well and generated growth for 4 years continuously.
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