Implementing Corporate Diversification - Netflix

When a firm begins to implement a corporate diversification strategy, they must organize in a way that allows for the strategy to be carried out efficiently because the firm risks losing economic profit or only earning an average profit. Organizing issues such as agency costs, organizational structure, management control systems, and compensation policies can aid in carrying out a diversification strategy. 

Netflix's Senior Executive is Reed Hastings. He is the founder and CEO of Netflix. His bio can be found here. It is the senior executive's has two main responsibilities: strategy formulation and strategy implementation. Hastings has diversified his company from its origin of DVDs by mail to include video streaming via the internet using a multitude of technological devices. His most recent diversification strategy was to create Netflix's own television show House of Cards. 

Here is a recent article on how Reed Hastings thinks Netflix will win the video subscription war. This sums up his opinion: