Netflix’s House of Cards Teaches Us On Why Most Companies Fail

Contributed by:  Michael Jacobson

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As I read this article (https://www.linkedin.com/pulse/what-netflix-house-cards-can-teach-us-why-most-companies-abbott), I learned that the chief reason businesses fail is because they do not follow a Core vs. Critical principle emphasized in business. In order to elaborate, the Core is what your business is all about. The Critical is the challenge in delivering the business product or service to your customers.

People love Netflix due to “House of Cards” and other unique programming. In order for the company to satisfy the customers and realize its Core, Netflix had to deliver streaming quality, Critical, so customers would pay for the service. Customers do not care how House of Cards is delivered to them as long as they can watch the program wherever and whenever they desire. Netflix knew Amazon Web Services already offered excellent streaming software. Netflix used what was already existing so it could focus on gaining strength in content selection. Netflix did not have to go through the hardship of building its own streaming software. The company partnered with Toshiba and Panasonic so they could accomplish their Critical and bring Netflix-ready devices available for use. The company “outsourced Critical to remain focused on Core.”

HOC2Businesses fail because they lack partners to take on the Critical. Once you get your partners in your Critical, then Business Resource Partners is the perfect partner for your Core. We help you with having a complete set of financials that are understandable to you. When you have a complete set of books, you are ready for your taxes, your banker and much more. Be sure to call Business Resource Partners when you are ready for a partner in your Core.