Netflix Case Analysis
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Introduction
Netflix is currently one of the most thriving business ventures as well as a leader in the television streaming and film globally. Founded in 1997 as a company providing DVD mailing service, the company’s tremendous and superfast growth led to the shutting down of Blockbuster in the year 2010. Netflix currently boasts of millions of customers across over 190 countries. The paper therefore analyses the effectiveness of strategies and barriers to its global expansion.
Q1.
It is significantly notable that Netflix has been growing at an unusually high growth rate. The company has employed strategy over the years that make it one of the big players in the film industry. Since its inception the Netflix started a distribution of films that were largely DVDs through mail service. It enabled the company to make a powerful disruption in the overall film industry of that time that was primarily run on rental basis. Then in 2000, with the revolution of high internet speed the company could easily stream large files over the World Wide Web. Netflix thoughtful strategies are self-evident by making a close step by step review of their growth process. Netflix build an underground following approach before launch XX XXXXXXX out technology writers in the internet XXXXXX groups (an XXXXX form XX blogging). Netflix offered them a chance XX XX the first to XXXXX XXXXX XXXXXXX after its XXXXXX in XXXXXX XXX beta XXXXXXX their rental system. This provided XXXXXXX with XXX opportunity XX work out operational issues and XXXXXXX it immediate access XX a library of hundreds XX rental DVDs’’ (p. 30). Netflix are XXXXXXX XX XXXXXXXX XXXXX on XXX XXXXX content XXXX XX XXXX XXXXXXXX XX XXX XXXXXX XXXXXXXX. This is XXXX in the thoughtfulness XX Netflix XXX especially after the company incurred huge XXXXXXXX XXXX XXXXX. XXX XXXXXXXX XXXXX XX Reed XXXXXXXX XXXX the XXXX XX seek out an answer XXX XXXXXXXX XXXXXX analysis XX well XX XXXXXXXX XXXXXXXXXXX. Besides, a closer scrutiny on XXXXXXX XXXXX is a XXXX in XXX XXXXX direction XXXXXXX cutting costs. Therefore, the strategic decision XXXXXX XX Netflix is XXXXX XX XXXXXXXX searched out information. XXX XXXXXXX of XXXXXXXX XXXXXXXXX XXXXX XX have XXXX replicated the XXXXXXX XXXXXXXXXX XXXXXXXX with XXX XXXXXX ‘’XX XXXX is XX Netflix’s best XXXXXXXX’’.
XXX company XXX been XXXXXX XXXXXXXX XX XXXX XX external challenges. For instance, Netflix majorly places its XXXXXXXX XX other XXXXXXXXX to deliver XXXXXXXX to its customers. XXXX is XXX to the fact that XXX XXXXXXX XXXX not have complete infrastructure XX XXX own to get XXX XXXXXXXX XX the XXXXXX. XXX XXXXXXX XX Netflix and XXX XXXXXXXX XXXXXXX XXXXXXXXX has been challenging XXX XXXXXXXXX XXXX XXX years to an XXXXXX XXXX it has affected its XXXXXXXXX to a large scale XX XXXX XXXXX. XXXXXXXX, ISP went ahead to introduce data XXXX XXXXX XXXXXXX affected XXX amount XX data XXXX Netflix customer can consume. Rothaermel (2015) points out, “To work around the new XXXXX, XXX XXX begun imposing XXXX XXXX XX XXXXX. Once XXXXX exceed XXXXX data XXX, additional data usage incurs XXXXX XXXX. XXXXXXX XXX XXXXXXXX XXXXXXXXXX to XXXXXXX XX zero rating an XXXXXXXXXXX XXXXX the XXX XXXX XXX count XXXXXXX XXXX preferred data XXXXXXXXX XXXXXXX XXXXXXXX XXXX caps’’ (p.39).
XXXXXXXX, XXX challenge XX XXXXXXXX XXXXXXX XX of XXXXXXX to Netflix. The company XXXX not XXXXXX XX spend large portion XX XXX budget on XXXXXXX content. Rothaermel (2015) accounts, ‘’Acquiring streaming content was a challenge for Netflix. The XXXX industry XXX long-term contracts in place XXXX XXX XXXXX subscription XXXXXXXX’’ (p.XX). This became a huge XXXXXXXXX XXX Netflix XXX it XXX XX XXXXXX XXX relevant XXXXXXXX XXXXXXX. XX a matter of XXXX, Netflix XXXXXXX XXXX contract XXXX XXXXX. Starz XXX XXXXXXXXXX XXXXXXXX XXXXXXX movie contents in XXXXX XXXXXXX XXX XX XXX same XXXX XXXXXXX XXX XXXXX XXXX XXXXXXXXXX XXXX experiencing XXXXXXXXX in XXXXXXXX XXX right content. XXXX therefore XXXX Netflix an XXXXXXXXXXX XX XXXXX into contract with Starz in order XX stream their XXXXXXX content. XXX XXXXXXXXXXX agreement XXX XXX XXXX beneficial to Netflix but Starz XXXX realized XXXX XXXX’ve also received an additional stream of revenues.
XX.
According to XXXXXXXXXX (XXXX), "Netflix made entrance into X.S. home entertainment XXXXXXXX in order XX provide streaming services through programing which XXXX it XXXXXXXX for its viewers to select XXXXXXX to XXXXX XX their own XXXXXXXXXXX. XX XX demand XXXXXXXXX service XXX XXXXXXXX by XXX XXXXXXX in 2007. A new Netflix XXXXXXX feature XXXXXXX XXXXXXXXXXX to XXXXX XXX XXXXXXXX XXXXXX XXXXXXXXX XX XXXXX computers" (p.34). The developed XXXXXXXX for XXXXXX of audience with XXXXXXXXX interest are XXXXXXXXXX. XXXX is evident in XXX XXXXX dramas such XX House of XXXXX. All of the XXXXXXXX XXXX XXXXX XX XXX XXXXXXXX XXXXX allows XXXXXXX XX XXXXX its XXXXXXXXX in a XXXX customized and XXXXXXXXX XXXXXX. The prime XXXXXXXXXXXXXX XXXX XXX the traditional XXXXX XX to give a schedule XXX XXXX XX the portal XXXXX to XXXX XXXXXXXX in a XXXXXXX. This therefore became a combination of different strategies XXXX XXX XX XXXXXX programs.
Moreover, Netflix has been able XX penetrate XXXX international market since it does not XXXX XXXXXXX programs tailored only XXX US citizens but XXXX XXX-citizens. Rothaermel (2015) indicates, ‘’XXXXXXX is adding services in XXXXXX, Korean, XXX XXXXXXX XX XXX 17 languages XXXXXXXXX XXXXXXXXX’’ (p.XX). In XXXXXXXX, it is worth XXXXXX that there is XX XXXXXXXXXX XXXX XXX XXXXXXX XX XXXXX XXX entire global XXXXXXXX and XXXX therefore XXXXX an opportunity to Netflix XX XXXXXXXXXX on XXXXX portal for XXXXXXXXXX XXXXXX XXXXXXXXXX.
XXXXXXX has XXX XX a business model that XX XXX XXXXXXXXXXXX of a XXXXX XX demand XXXXX XXXX a subscription XXX. This XXXXX enables XXX company XX XXXX XXX customers XXX XXX XXXXX XXX draws XXXX into XXXXXXX XX company’s services. However, Netflix XX still dominating XXX market XXXX a XXXXX percentage of XXXXX being XXXXXXXX from XXXXX XXXXXXX alone. XXXXXXXXX XXX XXX XXXXXX XXXXXXX XX Netflix’s business XX on XXX XXXXXXX since the XXXXXXXXX XXXXXXXX XX becoming XXXX preferred as XXX years pass. Moreover, XXX XXXXXXXXXXX of XXXXX streaming XXXXXXX XXX internationally XXX XX a XXXXX XXXXXX. Netflix being XXX leader XX streaming subscription model, the value XXXXXXXXXXX can be XXXX through its accessibility, XXXXXXXX XXXXXXX XXX affordability. XXXXX XXXXXXX XXXXX XXXXXXX episodes XX XXXXXXXXX XXXXX XXXX XXXXXXXXXX price, it XXXX has content XXXXX can be XXXXXXXXX on XXXXXXXX devices. XXXXXXX, Netflix XXX entered XXXX XXXXXXXXXXX with various XXXXXXXXX XXXXXXX licensing in order to attract attention from XXX XXXX XXXXXX. The company XXX XXXX ventured XXXX XXXXXXXXXX XX their own shows in view of the XXXXXXXX XX XXXXXXXX XXXX. XXXX XXX XXXXXXXXX after closer XXXXXXXXXXX XX customer interests, originality of XXX XXXXXXX, XXXXXXXXXX XXX ranking. XXXX XXXX made significant changes in XXX film XXXXXXXX. XXXXXXXXX carrying out an analysis of XXX data in order to produce original XXXXXXX XX a step in the XXXXX direction in XXX XXXX XXXXXXXX. XXX delivery channels, the user XXXXXXXX as well as XXXXXXX creation XXX the XXX XXXXXXX of XXX business model that XXXXXXX thrives in.
XX.
Following are the core XXXXXXXXXXXX of the Netflix.
Brand XXXX: Having a strong brand XXXX XX one XX XXX XXXX competencies XXXXXXXXXXX XX XXX company. XXX company XXXXXXX XXXXXXXX TV XXXXX, XXXXX studios XX XXXX as XXXXXXX XXXXXXXX XXXXXXXX like XXXXX XX Cards.
Leverage on Technology: Netflix thrives of super XXXXXXXXXX that is able XX XXXXXXXX the XXXXXXXXXXX of its XXXXXXXXX. XXXX XXXXXXX XXX company XX allocate XXXXXX XXXX XX their budget XXXX the right XXXXXXX. XXXXXXX, its XXXXXXXX XXXXXXXXXXXX stands a XXXXXX of XXXXXXX improving. XXX XXXXXXX to identify customer XXXXX XXXX a XXXXXXXX of building customer XXXXXXXXXXXX that is XXXXXXXXX for sustaining long-term XXXXXXXX XXXXXX (Christensen et al, XXXX).
XXXXXX XXXXXXXX: Netflix XX XXXXXXXXX a XXXXX brand in XXX film industry that XX XXXXXX becoming a XXXXXXXXX name. In addition, XXX XXXXXXX has managed to XXXXX XXXXX services XX a XXXXXXXXXXX XXXXX XXXX XXX XXXXX which XXXX XXX XX XXXX XXXXXXXX XXXXXXXXX. XXXXX XXXXXXXXXXX to XXXXX XX XXX XXXXXXXX of the market has XXX XXXXXXX an edge higher than XXX XXXXXXXXXXX.
Original XXXXXXX: XXXXXXX seems XX enjoy an XXXXX XXXX in XXX industry XXXXX XXX subscriber XXX XX able XX XXXXXX original content XXXX Netflix platform. The ability and aggressiveness as demonstrated XX XXXXXXX in XXXXXXXXXX reviewing their content is in itself a strong XXXX competence that XXXX XXXXXXXXXXX do not have.
XXXXXXX XXX XXXXXXX XX successfully XXXXX a XXXXX XXXX that traverses XXXXXX XXX XX. XXXXXXX XXXXXXXX can XXX XX easily accessed in XXXX XXXXXXXXX XXXXXX the world, an XXXXXXXXX XXXX no other XXXXXXX XXXXXXXX streaming service XXX XXXXX. XXX XXXXXXXXX reach is a XXXX advantage to XXXXXXX XXXXX through XXXX it can XXXXXX XX efficiently distribute XXX own streaming services and programs to XXXXXXXX of XXXXXXXXXXX XXXXXX XXX XXXXX. XXXXXXX, XXX XXXXXXXXXXX budget that Netflix offers enables it to attract XXX subscriptions which will XXXX way XXX XXXX to create more XXXXXXX for increased subscription and XXX cycle XXXXXXXXX as a strong competitive XXXXXXXXX to the XXXXXXX in XXX XXXX XXXXXXXX.
A XXXXXXX and XXXXXXXX XXXXXX of XXXXXXXXXXX XXXXXXXXX XXXXX to actively XXXXXXXX mistakes XXX foresee XXXXXXXXXXXXX to XXXX XXXXXXX the competition. X XXXXXXX to undertake an evaluation XX the competitive advantage XXXX most XXXXXXXX blind the XXXXXXX XX XXXX is XXXXXXXXX XXXXXX XXX XXXXXXXX (Barney, 2007).
XXX XXXXXXX XX adding XXXXXXXX in Arabic, Korean, and XXXXXXX to the 17 languages already supported. XXXXXXX XXXXXXXXXXX XXXX XX available in all countries: XXXXXXX the availability XX XXXXXXXX content XXXXXX by XXXXXXX. XXXXXXXXX XX Rothaermel (2015), “XX XXXXXXXXXXX like XXXXXX and XXXX invest XXXX in content, XXXXXXXX XXXX be competing not XXXX for XXXXXXX, XXX also XXX XXXXXX. XX’s a race XXX there XXX XXXXX XX XX XXXX XXXXXXX’’ (p.XX). It XX notable XXXX that focusing XX a niche is able reduce competition based on XXXXX which XXX XXXXXXXXXXXXX XXXX XXXXX XXXXXX in the industry. Besides, Netflix’s ability to focus on XXX XXXXX XXXXXXXXX itself in the XXXXXXXX XXX brings out XXX XXXXXXXXX in its XXXXX XXXX explicitly and effectively. Furthermore, the competitive advantage XX also best XXXXXXXXX XXXXXXX XXXXXXXXXXX XXXXXXXXXXX XXXX XXXXXX Netflix to XXXXXX into XXX new XXXXXXXX in the industry. XXX company has XX adjust its business XXXXX in a manner that XXXXX the customer needs. XX XX XXXXXXXXX XXX XXX company XX put XXXXXXXXXXX XXXX the customer enjoys XX XXX XXX XX their priority.
Q4.
By undertaking a review XX XXXXX contents to XXX the changing XXXXXX XXXXXXX, XXXXXXX XXX significantly increase the XXXXXX for XXX XXXXXXXX in XXX United XXXXXX. The XXXXXXX XXX been providing XXXXXXXXXXXX XXXXXXX via XXX website XXXX enable its viewers XX watch XXXXXX online as well as XXXXXXX. Through originality XX the content on XXXXXXX XXX XXXXXXX has rolled out XXXX the XXXX few years in XXXXXXXX their own contents such as XXXXXX or XXXXXXXX things. XXXXXXX XXXXXX XX benefit a XXXXX XXXX XXXX XXX XXXXXXXX infrastructure hence it can optimally leverage XX it. Through XXXX, the XXXXXXX will benefit from XXXXXXXXXXXX increased market XXXXX XXXXX XXXX thereby XXXX XX increased demand XXX XXX services.
Netflix stands XX enjoy XXXXXXXXXXX demand for XXX XXXXXXXX through XXXXXXXXX XXX XXXXXXXXXXXX. XXX company needs to enter into XXXXXXXXX partnership XXXXXXXXXX XXXX film companies XXXXXXXXX in other countries. This XXXX XXXX easier XXXXXXXXXXXX for XXXXXXX's XXXXXX XXXXXX to XXXXXXX XXX services in those countries without having XX XX through rigorous XXXXXXXX for XXXXXXXXX purposes. XXXXXXXXXXX, the XXXX competitors of XXXXXXX in XXXXXX XXXXXX XXXXX a white XXXXXXX XX XXXXXXXX such as movies XXX XX XXXXX. XXXXXXX can XXXX XXXX of its XXXXXXXX offered XX XXXX such XX e-games, XXXX XXXXXXX, podcasts or educational content (Rothaermel, XXXX).
Q5.
XXXXXXXX, International expansion of XXXXXXX XXXXXXX XX be a XXXXX XXXXXX opportunity, XXXXXXX XXXXXXX has been facing XXXXXXX XXXXXXXXXX XXXX going XXXXXX XXX X.S. market. XXXXX XXXXXXXXXX range XXXX regulations XX market XXXXXXXXXXX. XXX challenges faced by XXXXXXX are XXXXXXXXXX by lack XX local movie makers with sufficient know how XXX XXXXXXXXX as XXXX as grounded knowledge on local preferences XXX culture. XXXXXXX, in the contents that XXX universally XXXXXXXX, XXXXX is still a XXXXXXX XXXX XXXXXXX of XXX content and translation. XXXX XX XXX XXXXXXX XXX tried XX overcome this challenge by translating XXXX XXXXXXXXX XXXXXXXXX XXXXX XXXXXXXXX XXXXXX XX 17 XXXXXXXXX. I therefore believe XXXX XXXXXXX should employ community based approach XXXXX XXXXX XXXXX an XXXXXXXXXXX XX be XXX XXXXXXXXXX of XXXXX own content. XXXXXX, Netflix XXX still give XXX communities an XXXXXXXXXXX to subtitle movies XXX XXXXX. XXXXXXXXXXXXX XXXXXXXX opportunities present XXXXXXX, XXXXX XXX myriad XX XXXXXXXXXX XX an expanding business.
The local XXXXXXXXXXX XX XXXXXXX challenges XXX Netflix XXXXX XXX XXXXX film XXXXXXXXX XXXX an upper XXXX in XXXXXXXXXXXXX XXX XXXXX XXX dynamics of XXX XXXXX XXXXXX. Furthermore, XXX XXXXX XXXXXXXXX XX the Netflix XX XXX XXXXXXXXXXXXX market also comes with huge XXXXXXXXX XXXX XXX run into the XXXX-term XXXXXX XXXXXXX XX generated. XXXXXXXXX XXX XXXXXXXXX XX the globalized XXXXXX XX XXXXXXXX XX XXXX capital XXXXXXX. Netflix expects its XXXX of growth to XXXX XXXX XXX XXXXXX due XX XXX fact XXXX XXXXXXX XXX expanded across many XXXXXXXXX. The slowing XXXX XX growth in XXX XXXX XX massive XXXXXXXXX is a XXXXX XXXX XXXX XXX XXXXXXX has hit its maturity stage.
XXX XXXXXXX XXX made XXXXXXXXXXX advancement in putting in place XXXXXXXX that XXXXXX technologies that are XXX XXXXXXX XXX XXX geographical XXXXXXX. Netflix XXXXXX now XXXXX XXX effort XX the China XXXXXX although XXX market there is XXXXXXXXX XX XXXX regulations. XXX XXXXXXX XXX XXXX around this XX competitive partnership with XXXXXXXXX operating in market XXXXXXXXXXXX. XXXXXXX, the introduction of XXXXXXX quota XX the European XXXXXXXXXX works XXXXXXXXXX XX the international XXXXXXXXX plans that XXXXXXX has XXX in place (XXXXXXXXXX, 2015).
Conclusion
XXXXXXX has XXX itself up as a XXXXXX in the film XXXXXXXX XXXXXXXXXX on XXXXXX rentals XXX on XXXXXX XXXXXXXXX. XXX XXXXXXX gives XXXXX XX XXXXXXXXXXXXX XXXX XXXXXXX that XXX XXXXX regularly XXXXXXX with ease of access. XX the initial XXXXXX of XXXXXXX formation, Netflix had strong XXXXXXXXXXXXX in XXXXXXXXXX their long XXXXXXX XXXXXXX XXXX of rising to the XXX XX entertainment industry especially distribution of online movie rentals. XX the XXXXXX XX internet XXXXXXXXXX, XXXXXXX adopted XX XXXXXX and XXXX online XXXXXXXX to grow XX XXXXXX the company they are today. XXXX is in contrast XX the strategies XXXX XXXXXXXXXXX XXXXXXXX in that XXXXXXX XXXXXXX in to XXXXXXX the market XXXX XXXXXX XXXX Blockbuster failed XX XXXXXXX.
References
XXXXXX, J. B. (XXXX). Gaining XXX XXXXXXXXXX XXXXXXXXXXX advantage. Prentice hall.
XXXXXXXXXXX, X., & Raynor, X. (2013). The XXXXXXXXX's solution: Creating and XXXXXXXXXX XXXXXXXXXX
growth. Harvard XXXXXXXX Review Press.
XXXXXXXXXX, F. X. (XXXX). XXXXXXXXX management. XXXXXX-Hill XXXXXXXXX.