Knowledge@Wharton Business Research Journal

Netflix: One Eye on the Present and Another on the Future
In a year when DVD sales are falling and studios are facing major shakeups in their executive ranks, the movie industry has at least one success story to cheer about: Netflix. Despite the recession, the Los Gatos, Calif.-based company continues to thrive and is now in a race to transition to a business model focused on streaming content online while continuing to exploit its current model based on physical DVD distribution. According to Wharton faculty, Netflix has managed this balancing act deftly so far, but growing competition in digital distribution means that it may not have an advantage for long.

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Starved for Financing: Is There Relief in Sight for U.S. Small Businesses?
President Obama's recent move to funnel more credit to small businesses comes at a time when a fragile recovery appears to be underway in that sector. If Congress approves Obama's plan, the measures would enable community banks to borrow at low rates from the Treasury Department's Troubled Asset Relief Program, so long as the banks show they are increasing lending to small enterprises. Still, most small businesses continue to hunker down: Last month, a survey by the National Federation of Independent Business found that expansion plans for small businesses were at a 35-year low. How quickly will conditions improve for a sector that generates two-thirds of all new jobs in the U.S.?

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Renault-Nissan CEO Carlos Ghosn: 'Now Is the Time for the Electric Car'
The electric car is real. It's here. And before long -- when curbside charging stations become as ubiquitous as parking meters -- it won't seem all that complicated, either. So says a man who has thrown his corporate reputation into the post-gasoline car: Carlos Ghosn, CEO of Renault and Nissan. In a wide-ranging Wharton Leadership Lecture that touched on everything from managing a multicultural conglomerate to pushing for targeted government regulation, Ghosn was at his most optimistic when discussing a future where zero-emissions vehicles are embraced, not out of altruism towards Mother Earth, but because they are good business.

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Company Stores vs. Independent Retailers: Clash or Peaceful Coexistence?
Microsoft dipped its toe into retail waters this month by opening its first company store as a way to showcase the latest and greatest in PCs, Zunes and Xbox consoles. But computer companies aren't the only manufacturers moving into the retail space, says Wharton marketing professor David Bell. Whether it's handbags from Coach, shoes from Nike or suits from Ralph Lauren, consumers increasingly have the choice to buy products either at stores operated by manufacturers or from independent retailers. Bell recently co-authored a research paper looking into competition between company stores and independent retailers in the same market.

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Lippo Group CEO James Riady: 'Money and Power Are a Blessing and a Curse'
James Riady is the CEO of Lippo Group, one of Indonesia's largest conglomerates with annual revenues of some $3 billion. The Group, among the most active property developers in Southeast Asia, has expanded into China and Hong Kong and plans to invest $10 billion over the next five years in the Asia Pacific region. It also has interests in media, telecommunications, retail and health care. Fifteen years ago, Riady was responsible for the establishment of Universitas Pelita Harapan in Indonesia, and he has a strong interest in the social impact of business. During an interview with Knowledge@Wharton, Riady explained the lessons he has learned over the years from successes and failures in business and politics.

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Saturn: A Wealth of Lessons from Failure
General Motors' decision earlier this month to scrap its Saturn brand triggered frequent retellings of the many ways in which GM missed an opportunity to recast itself and the auto industry. But other manufacturers did adopt some of Saturn's innovations, according to Wharton faculty. Indeed, they say, the Saturn story provides a roadmap for what to do --- and what not to do -- as the auto industry adjusts to the post-financial crisis world.

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