Erika Hayes James
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  • Netflix and the Corporate Apology

    A few days ago Netflix CEO, Reed Hastings, sent out a mass corporate apology for errors in judgment as the company embarked on a major change initiative. Stating at the outset of his apology by blog, “I messed up . . . I owe you an explanation.” Hastings went on to describe the firm’s rationale for splitting its streaming and DVD by mail business into two separate organizations. Notable in his apology was an admission of arrogance; something that has proved to be difficult to do by many high status and high profile individuals. He also did a decent job of explaining why Netflix was changing its business model. Where he missed the mark, however, was in acknowledging customer dissatisfaction with the price increase that accompanied the organizational changes.

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