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Leading change through creative destruction: how Netflix's self-destruction strategy created its own market

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  • Lindy Ryan

Abstract

By continuing to build the Netflix brand as a cutting-edge pioneer with a culture of innovation, Netflix has conquered the video rental-by-mail market under the transformational, charismatic leadership of CEO Reed Hastings. This paper offers the perspective that Netflix has survived a planned process of creatively designed destruction to renew its long-term strategy as it leads the video rental industry into the emerging world of on-demand streaming content. Drawing on the construct of ethical anarchy by Hurst (2002, 2012), as well as contributions from Morgan (2006, 2011), Jaworski (2011), and Argyris (2002), this research builds upon the concept of organisational renewal and sustainability through crisis and change, and argues that Netflix's actions have been strategic and purposeful, leveraging innovation and customer loyalty.

Suggested Citation

  • Lindy Ryan, 2013. "Leading change through creative destruction: how Netflix's self-destruction strategy created its own market," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 7(4), pages 429-445.
    • Handle: RePEc:ids:ijbire:v:7:y:2013:i:4:p:429-445
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    Cited by:

    1. Bowers, Melissa R. & Hall, J. Reggie & Srinivasan, Mandyam M., 2017. "Organizational culture and leadership style: The missing combination for selecting the right leader for effective crisis management," Business Horizons, Elsevier, vol. 60(4), pages 551-563.

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