Netflix Case
Student name
Instructor name
Course name
Date:
Netflix Case
1. Describe Netflix’s strategy process over time. What approach to the strategy process does Netflix follow? What works well with this approach? What are some challenges with this process, especially as Netflix continues to grow fast?
The question on how Netflix evolved over the time to become one of the big players in the film industry is largely answered by looking into the strategy the company has employed over the years. When Netflix came into existence, it began a distribution of films which were largely DVDs via mail. XXXX XXXX an impactful disruption XX XXX then film industry XXXX XXX XXX XX rental basis and thereafter its collapse. XX the early XXXX, XXXX household were XXXXXXXXX to XXXX speed internet and could then XX able to XXXXXX XXXXXX XXXXX XXXXX XXXX the XXXXXXXX. According XX Rothaermel (XXXX), ‘’at XXX XXXX XX XXX millennium, XXXXXXXX XXXXXXX providers XXXXX offering XXXXXXXXXXXXX XXXXXX XXXXXXXXX service XXXXXXX XXXXXXX XXXXXXXXXX lines (DSL) and cable modems. Broadband technology enabled XXXXXXXXX of high quality video’’ (p.XX).These XXXXXXXXXXXX XXXX Netflix XXXXXXXX to XXXXX its DVD business through XXXX into a nationwide XXXXXXX XX video XXXXXXXXX. Soon XXXXXXXXX, the television business was integrated into the XXXXXXXX model XX XXXXX XXX XXXX percentage of streaming was XXXXXX via television during the XXXXX years.
XXXXXXX XXXXXXXXXX XXXXXXXXXX are self-XXXXXXX XX making a XXXXX XXXX by XXXX review of XXXXX growth XXXXXXX. XXXXXXXXXX (XXXX) indicates, ‘’Netflix build an underground following before XXXXXX by XXXXXXX out XXXXXXXXXX XXXXXXX in XXX XXXXXXXX XXXXXX XXXXXX (an XXXXX form of blogging). Netflix XXXXXXX them a chance XX XX the first XX write XXXXX Netflix after its launch in XXXXXX XXX beta XXXXXXX XXXXX rental system. XXXX provided XXXXXXX XXXX the XXXXXXXXXXX XX XXXX out operational issues and granted it immediate XXXXXX XX a library XX XXXXXXXX of XXXXXX XXXX’’ (p. 30).
XXXXXXXXXXX, XXXXXXX are focused XX spending money XX the XXXXX content XXXX XX more adaptive XX its market XXXXXXXX. This is XXXX in XXX XXXXXXXXXXXXXX of XXXXXXX XXX especially after XXX company XXXXXXXX huge negative cash flows. Despite XXX XXXXXXXXXX XXXXXX that XXXXXXX XXX experienced over XXX XXXXX, the XXXXXXXXXX XXXX have come with the XXXXXX cannot be XXXXXXX. XXX company XXX faced both XXXXXXXX and external XXXXXX of XXXXXXXXXX.
Netflix XXX faced many challenges in expanding international XXXXXX. XXXXXXX XXX XXXX that XXXXXXX enjoys XXXX market internationally, the market XXXXXX XXXXX XXXXXX XX huddles. The international XXXXXXXXX in many XXXXXXXXX of the XXXXX comes XXXX a XXXXXXXXX XX licensing rights. XXXX is due XX XXX fact XXXX every country XXX XXX own uniqueness XXXX XXX own XXXXXXXXXXXXXX XXXXXX to permit an XXXXXXXXXXXXX XXXXXXX like XXXXXXX XX operate in XXX XXXXXXXXXXXX.
2. XXX was XXXXXXX able XX XXXXXXX XXX X.S. home entertainment industry? Describe Netflix’s innovation strategy XXXX time. Also, how did XXXXXXX’s XXXXXXXX change XXXX time? How XXX its business model innovation XXXXXXX its technology strategy?
XXX several XXXXX, XXXXXXXXXX XXX XXXX using a XXXXXXXXX-wave to distribute XXX XXXXXXXX XXXXX signals via XXXXXXXX connectivity XX XXXXXXX services XXX XXXX the XXXXXXX. This works contrary to XXX broadcasting XXXXXXXXXX which XXXX XXXXXXX single XXXXXXX XX XXXX to XXX clients within its coverage. XXXXXXXXXX, companies like Netflix made XXXXXXXX XXXX the XXXXXX XX XXXXXXX XXXXXXXXX services XXX programing that XXXXXXX its users XX select XXXXXXX XX XXXXX at XXXXX own convenience. XXXXXXXXXX (XXXX) reports, ‘’In XXXXXXX 2007, XXXXXXX launched an on XXXXXX streaming XXXXXXX. A new XXXXXXX website XXXXXXX XXXXXXX subscribers to watch one thousand titles XXXXXXXXX XX their computers’’ (p. 34). Therefore, XXX main XXXXXXXXXXXXXX left for the traditional XXXXX is to XXXX a schedule and XXXX of XXX portal XXXXX to have programs in a XXXXXXX. XXXX therefore became a XXXXXXXXXXX of different XXXXXXXXXX that led XX XXXXXX XXXXXXXX.
XXXXXXX XXXXXXX does XXX XXXXXXX XXXXXXXX that are tailored for XXXXXXXX interests of an XXXXXXXXXX nor XXX mass XXXXXX, it XXXXXXXX programs for dozens of XXXXXXXX XXXX XXXXXXXXX XXXXXXXX’s altogether. XXXX is evident in the video dramas XXXX as XXXXX XX cards. Further, it XX XXXXX by the internet XXXXX allows Netflix to XXXXX its XXXXXXXXX in a XXXX customized and separated manner. Netflix XX able XX undertake XXXX XXX XX the XXXXXXXX capabilities in XXXXXXXXXX XXXX regarding XXX subscribers and XXXXXXX XXX easily classify an audience to the XXXXX of his or her XXXXXXXXX. XXX XXXXXXXXXXX in a XXXXX cluster are only exposed to XXXX is in their XXXXXXXXX.
XXXXXXX took a XXXXX XXXX to introduce a XXXXX on demand XXXX a subscription fee. XXXX XXXXXXXX has XXXXX XXXX XXXXX XXXXXX in the film industry XXX XXXXXXXXX many companies in XXX industry have been XXXXXXXX XX XXX success XX Netflix to adopt XXX XXXX model. A XXXX business model enables the company to XXXX XXX XXXXXXXXX XXX for value and draws them into XXXXXXX to company’s services (XXXX et al, 2011).
XXXXXXX being XXX pioneers XX XXX XXXXXXXXX subscription model, XXX value proposition XXX XX seen through its XXXXXXXXXXXXX, XXXXXXXX content and affordability. XXX XXXXXXX has ventured into production of XXXXX own XXXXX in XXXX XX the XXXXXXXX of XXXXXXXX data. XXXX XXX XXXXXXXXX XXXXX closer XXXXXXXXXXX XX customer interests, originality of the XXXXXXX, XXXXXXXXXX XXX XXXXXXX. XXXX move XXXX XXXXXXXXXXX XXXXXXX in XXX film industry. XXX XXXXXXXX channels, XXX user behavior XX XXXX as content creation XXX the key aspects of the XXXXXXXX model that XXXXXXX thrives in.
3. XXXX are XXXXXXX’s core XXXXXXXXXXXX? XXX can XXXX XXXX Netflix to XXXXXXX XXX XXXXXXXXXXX XXXXXXXXX? XXX XXXX its XXXX XXXXXXXXXXXX XX honed XXX XXXXXXXX?
One XXXXXXXXXXX XXXX competence XXXX Netflix XXX is its XXX brand name. A company that enjoys a XXX brand XXXX XXXX apart from competition XXX XXXX XXX entrance. XXXXXXXXXXX variety of XXXX XXXXXXX produced shows XX one XX its XXXX-XXXX goals. XXX company offers XXXXXXXX XXXXXXX XXXX available XX XXX platform. As mentioned up there, XXX XXXXXXXX and acquisition of rights XX XXXXXXXX content is XXXXX a major XXXXXXXXX XXXX XXXX XXXXXXX in the XXXX industry XXXXX XXXXX. XXXXXXX’s XXXXX awareness and reputation XXX XXXXXXXXX to grow significantly over XXX years. XXXX has become a core competence XX XXX company which XXX significantly XXXXXXX XXX XXXX the customer base XXX XXXX international rapid expansion. XXXX XXX XX XXXX XXXXXXX fast XXXXXX in XXXXXXXX XXX market share XXXXXX the international markets.
The XXXXXXX XXXXX to constantly evaluate its XXXXXXXXXXX advantage in order XX maintain XXX XXXXXXXXXX XXXXX in XXX market. X failure XX undertake an XXXXXXXXXX XX the competitive XXXXXXXXX XXXX most XXXXXXXX XXXXX the company on XXXX XX XXXXXXXXX XXXXXX the industry (Barney, XXXX). XX XXXXXXXX, XX XXXXXXXX its competiveness in the international XXXXXX, XXXXXXX has to XXXX XXX XXXXXXX XXXXXXXXX in XXXX languages.
Netflix programming XXXX be XXXXXXXXX in XXX countries: however the availability XX licensed content varies XX country’’ (p.39). XX addition, XXXXXXX’s competitive advantage XXX be sustained by focusing XXX building on the XXXXX it XXX XXXXXXX XXXXXXXXXXX in XXX market. Competitive advantage is also XXXX XXXXXXXXX through XXXXXXXXXXX XXXXXXXXXXX XXXX lead to XXXXXXXXX XX XXX products in the industry (Porter, XXXX). XXXXXXX XXX XX XX at the forefront in coming XX with XXX products that are responsive to XXX XXXXXX XXXXX. The XXXXXXX XXX to adjust XXX XXXXXXXX model in a XXXXXX that meets XXX XXXXXXXX needs. XX is XXXXXXXXX for the XXXXXXX to put convenience that XXX customer XXXXXX XX XXX XXX of XXXXX XXXXXXXX.
X. Netflix XXXXXX in XXX United XXXXXX seems to be maturing. XXX XXXXX Netflix increase XXXXXX XXX its XXXXXXXX in XXX XXXXXX States? What XXXXX services XXXXX XXXXXXX XXXXX to drive future growth?
XXXXXXX XXX significantly XXXXXXXX XXX XXXXXX for its products in the XXXXXX States XX XXXXXXXXXXX a review of their XXXXXXXX XX fit the XXXXXXXX market XXXXXXX. XXX XXXXXXXX, XXX XXXXXXX can consider XXXXXX XXXXXXXXXXXX XXXXXXX on XXXXX XXXXXXX which XXXX allow XXX subscribers XX enjoy watching movies XXXXXXX. XXXXXXX, the company should ensure XXXXXXXX XXXXXXXXXXX of their XXXXXXX. XXXX can XX XXXX in XXX moves XXXX XXXXXXX has XXXXXX out XXXX XXX past few years in creating XXXXX own contents XXXX as XXXXXX or XXXXXXXX things. Furthermore, Netflix stands to enjoy significant demand for XXX XXXXXXXX XXXXXXX XXXXXXXXX XXX XXXXXXXXXXXX. XXX company needs to XXXXX XXXX XXXXXXXXX XXXXXXXXXXX XXXXXXXXXX with film companies operating in XXXXX XXXXXXXXX. XXXX XXXX make XXXXXX XXXXXXXXXXXX for Netflix XX XXXXXXX XXX services in XXXXX countries XXXXXXX having to go through XXXXXXXX XXXXXXXX XXX licensing purposes. Besides, Netflix stands XX XXXXXXX a great XXXX from the existing XXXXXXXXXXXXXX hence it can XXXXXXXXX leverage XX it. Through XXXX, XXX company XXXX XXXXXXX XXXX tremendously XXXXXXXXX market share XXXXX XXXX thereby XXXX to increased XXXXXX for its services.
X XXXXX XXXX XX Netflix competitive XXXXXX, some of XXX competitors offer a XXXXX XXXXXXX XX XXXXXXXX XXXX XX movies XXX TV XXXXX. XXXXXXX, XXXXXXX XXX XXX own generated content XXXXX Hulu XXX XXXXXX out an XXXXXXX that XXXX live one day XXXXX XXXXXX. XX the XXXX manner Netflix XXX XXXX XXXX XX XXX XXXXXXXX offered as well XXXX XX e-XXXXX, live XXXXXXX, podcasts or educational XXXXXXX.
5. XXXXXXXXXXXXX XXXXXXXXX XXXXXXX XX be a major growth XXXXXXXXXXX for Netflix. XXXX challenges does XXXXXXX XXXX XX XXXXX XXXXXX the U.S. XXXXXX? What XXX Netflix XX to address some of XXX XXXXXXXXXX encountered XXXX going XXXXXXXXXXXXXXX? XXX XXXXX XXXXXXXXXXXXX markets XXXXXX XXXXXXX focus XX, XXX why?
XX spite of XXX potential XXXX XXXXXXXXXXXXX XXXXXX, Netflix faces myriad of challenges that range XXXX XXXXXXXXXXX to XXXXXX XXXXXXXXXXX. XXX instance, Netflix has failed to XXXXXX into china because XX many severe XXXXXXXXXXX. Instead, XXX XXXXXXX XXX opted to work XXXXXXX XXXXXXX out XXXXX XXXXXXXXX services to XXXXX authorized companies in XXXXX. XXXXXXXXXX XXXX XXXXXXX
es, ‘’XXXXXXX XX noticeably absent from China, a XXXXXX where Netflix is still, ‘’in XXX relationship XXXXXXXX phase’’ (p.39). XXX XXX of issuing out XXXXXXXX seems to XXXX XXXXXXXXXX to Netflix as it XXXXXXXXXX an already stiff competitive production XX original XXXXXXX.
Moreover, rapid XXXXXXXXX XX XXXXXXXXXXXXX XXXXXX comes XXXX huge overheads XXXX XXX XXX into XXX long-XXXX before revenue is XXXXXXXXX. Therefore XXX XXXXXXXXX to the XXXXXXXXXX market XX hampered by huge XXXXXXX XXXXXXX. However, XXXXXXX XXX XXXX strategic alliances XXXX XXXXX producing film XXXXXXXXX in order XX leverage XX XXXXX existing infrastructure XXXXX XXXX thereby optimally XXXXXX capital outlays XXXX are XXXXXXXX XXXXXXXX XXXXXX XXXXXXXX XX a new country or XXXXXX.
XXX challenges of XXXXXXXXX XXXXXX XXXX XXXXXXXXX into XXX international XXXXXX are an access XX content outside one’s geographical area through the use of XXXX. XXX company has made XXXXXXXXXXX advancement in XXXXXXX in place XXXXXXXX XXXX blocks technologies XXXX are not XXXXXXX via its geographical XXXXXXX. XX addition, XXXXX competition XXXX XXXXX huge XXXXXXXXXX XXX Netflix since the XXXXX film producers have an upper XXXX in understanding XXX needs XXX dynamics of the XXXXX market. It is important to XXXX that local companies stands a XXXXX chance in XXXXXXX up XXXXX XXXXXXXX XXXXXX than XXXXXXX companies such XX XXXXXXX. It is XXXXXXXXX XXXX to XXXX XXXX XXXXXXX expects its rate of XXXXXX to slow into XXX XXXXXX XXX to XXX XXXX XXXX Netflix XXX XXXXXXXX XXXXXX XXXX XXXXXXXXX. XXXX is XXX XXXX XXXXXXXXX in XXX United XXXXXX where XXX XXXX of XXXXXX XXX XXXXXXXXXXXXX XXXX down. The slowing XXXX XX growth in XXX peak XX massive XXXXXXXXX is a XXXXX sign XXXX the company XXX XXX XXX XXXXXXXX stage.
Therefore, Netflix should XXX XXXXX XXX effort XX XXX China market XXXXXXXX the market XXXXX is saturated of many regulations. The company XXX XXXX around XXXX by competitive XXXXXXXXXXX XXXX companies XXXXXXXXX in market XXXXXXXXXXXX. Besides, the XXXXXXXXXXXX of content quota XX the XXXXXXXX commission works negatively to XXX international XXXXXXXXX plans XXXX XXXXXXX has XXX in XXXXX. XXXXXXXXXX 2015 XXXXXXX, ‘’Netflix’s XXXXXXXXX has drawn XXX XXXXXXXXX XX a number XX XXXXXXXXXX XXXXXXXXXXX. The European XXXXXXXXXX XXX example, is considering a European XXXXXXX quota and XXXXXXX XXXX for XXXXXXXX XXXXXXXXXX’’ (p.39).
References
Rothaermel, X. T. (XXXX). Strategic XXXXXXXXXX. McGraw-Hill Education.
XXXXXX, X. X. (2007). Gaining and XXXXXXXXXX XXXXXXXXXXX XXXXXXXXX. XXXXXXXX XXXX.
Porter, X. X. (XXXX). Competitive advantage of nations: XXXXXXXX XXX sustaining superior performance (Vol. X). Simon XXX Schuster.
Zott, X., Amit, R., & XXXXX, L. (XXXX). The business model: recent developments and future research. Journal XX management, XX(4), XXXX-1042.