1/ Netflix's decision to produce original content meant billions in upfront cost, negative cash flow for a few years, but stronger long-term profitability.
Every strategic decision has a quantitative impact.
Here's how to structure the quantitative side of your analysis:
6/ Combine this with your qualitative conclusion from yesterday.
Qualitative tells you which option makes strategic sense. Quantitative tells you which one makes financial sense.
Together, they give you a complete recommendation.
1/ Netflix had to decide: invest billions in original content or keep licensing.
A key part of the decision evaluation had to include a qualitative assessment.
Here's how to structure that evaluation for any strategic decision:
7/ Either way, close with a written conclusion.
Based on the qualitative factors alone, which alternative comes out ahead and why?
This is one half of your final recommendation. The quantitative analysis brings the other half.
1/ Netflix decided to pivot into original content production. A massive strategic shift.
SMEs face similar crossroads all the time. New market, new product, major investment.
Here's a framework to set the scene before making any big decision:
6/ Now you've mapped where you are internally, externally, and financially.
This is the foundation. The next step is evaluating your options and alternatives in detail.
The situational analysis gives every option the context it needs.