1) Faced with the increased costs of delivering DVDs by mail and streaming online content, clearly Netflix had to take some action

Subject:ManagementPrice:3.87 Bought7

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1) Faced with the increased costs of delivering DVDs by mail and streaming online content, clearly Netflix had to take some action. Describe the decision-making process you would have advised Netflix management to follow.

2. What values are reflected in the Netflix decisions presented in the case?

3. Think back to the chapter discussion about the con- cept of escalation of commitment. Was Netflix's

continuation with its pricing action (which resulted in a large loss of customers) reflective of escalation

of commitment, or was it a rational plan? Explain.