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What went wrong at Netflix
Netflix's stock recently went into a tailspin as the company announced the loss of nearly a million customers in the last few months. Netflix exemplifies a success story going bad because of both external factors related to "creative destruction" stemming from technological change and competition, and internal factors that are related to strategic misalignment of business models and a failure to put customers' needs first. It also shows how good decisions in an earlier environment can come back to haunt you when conditions change.
By Rajshree Agarwal and Raj Echambadi
November 3, 2011