Question

In 2010, Reed Hastings was named Fortune Magazine's "Business Person of the Year." Yet according to readings and class discussions, what was the Netflix CEO's "biggest strategic regret" to that point? What was his reason for giving this answer?

a. Reed Hastings regretted not investing more in advertising to promote Netflix.
b. His biggest regret was expanding internationally too slowly.
c. Hastings wished he had focused on traditional retail stores instead of the online market.
d. His regret was not making Netflix exclusively available on one specific device.

Answer 1

Reed Hastings' biggest strategic regret was expanding internationally too slowly. Option B is correct.

Step-by-step explanation:

Reed Hastings' primary regret, despite being lauded as the Fortune Magazine "Business Person of the Year" in 2010, was the sluggish international expansion of Netflix. He acknowledged that they had been overly cautious and conservative in their approach to global markets, thereby missing out on substantial growth opportunities. This regret stemmed from a realization of the immense potential in international markets and the competitive advantage they could have gained by expanding more aggressively.

Unlike the other options, advertising, traditional retail, or exclusive device availability, his regret was rooted in the broader strategic perspective of global expansion, understanding the untapped market potential beyond domestic borders. Recognizing this oversight led Netflix to pivot its strategy and focus on aggressive international expansion in subsequent years, demonstrating a learn-and-adapt approach to capitalize on missed opportunities.

The correct answer: b. His biggest regret was expanding internationally too slowly.