Netflix Business Strategy

Read “Global Capsule 3” on page 72 of your course textbook. As you read, pay close attention to Netflix’s strategy, and write a case study describing the points listed below.

  • What are Netflix’s internal strengths and weaknesses?
  • Who are Netflix’s competitors?
  • Do you see Netflix’s strategy as effective or ineffective? Why?

Your case study must be at least one page in length, not counting a title page and reference page. You must utilize at least your textbook as a source for this case study. Additional outside sources are not a requirement, but if you choose to use them, they must be cited and referenced according to APA standards

Answers:

1) Netflix Internal Strengths and Weaknesses

Strengths:

  • Strong brand reputation
  • Global presence
  • Affordable subscription fees
  • Good technology – streaming is clear and customized
  • Global presence
  • Product variety
  • Customized services
  • Originality
  • Adaptability

Weaknesses

  • increasing debts
  • limited copyrights
  • rigid pricing
  • shortage of support staff
  • overdependence on North American market.

2) Netflix Competitors

Netflix faces competition from many streaming services. Traditional entertainment companies have diversified into the streaming business while new companies are also emerging. Some of its competitors include:

  • Apple TV+
  • Disney+
  • HBO Max
  • Amazon
  • Hulu
  • Sling TV
  • YouTube TV

3) Effectiveness of Netflix Strategy

Netflix strategy is effective specifically because it can adapt to changing consumer needs. The company has adopted a generic strategy that entails operational efficiency and cost effectiveness to provide customers with quality viewing experience at a low price. By allowing customers to view their content directly through online streaming, the company cuts the middlemen that could raise costs for the business. Netflix’s high-efficiency and large scale online capability gives them an opportunity to cut costs while at the same time delivering quality content that matches the needs of the customer.

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