Title: Leading change through creative destruction: how Netflix's self-destruction strategy created its own market
Authors: Lindy Ryan
Addresses: City University of Seattle, School of Management, Bellevue, WA 98005, USA; Radiant Advisors, Boulder, CO 80301, USA
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.
Keywords: creative destruction; transformational leadership; crisis; ethical anarchy; sustainability; organisational renewal; innovation; research; change leadership; double-loop learning; implicate order; organisational images; organisational change; Netflix; self-destruction strategy; video rental; on-demand streaming content; customer loyalty.
International Journal of Business Innovation and Research, 2013 Vol.7 No.4, pp.429 - 445
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 09 Jun 2013 *