1. Based on a SWOT analysis, which of the following is not one of the threats to Netflix's future prosperity?

A-The entry of more movie rental competitors in the emerging VOD segment of this market.

B-Netflix has no presence in the retail store segment of the video rental market (where DVD rental revenues are currently the largest).

C-Movie studios and DVD retailers are lowering the price of movie DVDs , making it more attractive to purchase rather than rent them.

D-Growing use of file-sharing to pirate movies.

2. Which of the following is not true about Netflix's financial performance?

A-Netflix has no long-term debt.

B-Net profits have grown even more quickly than revenues (CAGR above 80%) leading to an increasing ROS ratio.

C-Netflix's gross profits have been growing even faster than its net profits.

D-Revenues have grown quickly (79% CAGR) and consistently from 2000-2007

3. Which of the following is not one of the top priority issues Blockbuster management needs to address?

A-Can Blockbuster revitalize store traffic and store sales?

B-Should Blockbuster begin a long-term effort to migrate its business to online subscriptions and digital delivery?

C-How can Blockbuster close the gap with Netflix in its efforts to build its digital delivery capabilities?

D-Should Blockbuster expand internationally?

4. Which of the following is not one of the top priority issues Netflix management needs to address?

A-How can Netflix improve its delivery management system?

B-Should Netflix expand internationally?

C-What can Netflix do to curtail the growing number of subscriber cancellations?

D-How can Netflix attract new subscribers (continued subscriber growth is key to the company's long-term success)?