|Type of paper:||Report|
|Categories:||Company Media Business strategy Leadership style|
Netflix Inc's business strategy concept aligns with the company's generic strategy for competitive advantage, and intensive growth strategies. This positioning is seen as a factor in the firm's strategic position as a leading competitor in the delivery of the on-demand digital content streaming industry. Their generic strategy ensures that its business model works through suitable competitive advantages to defeat rival firms like HBO, Disney, Amazon, Apple, and Google. Some of the strategic options that have been discussed include communication strategies, Netflix's content strategy, and the potential advantages of the Net Neutrality concept. Netflix should consider implementing a highly personalized media context as it will provide consumers with increased choice, control and opportunity for exploration of new content the moment it is released. Hence, Based on Social Learning Theory, consumers will be more inclined to subscribe to Netflix since it is able to provide the latest episodes and films, and also the convenience being brought by the personalized media environment. On Net Neutrality, Netflix should consider supporting other firms calling for the implementation of this concept as it will allow clients to share and access data of their colleagues without interference in the future. On Netflix content strategy, First, they should consider monetizing their unique video content by partnering with companies like HBO, Warner Studios to provide intriguing shows continuously. It will help to create suspense to clients who will be eager to subscribe to Netflix as they wait for new seasons of their favourite shows like Money Heist, Power, Blacklist, and Narcos. The report has also discussed three countries that Netflix should look into expanding their operations, which include; China, the U.S.A, and India based on market growth, a high number of mobile users especially in India and China. It has further explained how Britain exiting the EU block will affect the future operations of Netflix in the U.K. The main objective of Netflix is to diversify its line-up of shows and movies to lure more global clients, particularly as growth in terms of U.S.
Netflix is an online, video-on-demand, streaming firm that creates its own audio-visual stories (Vielen, 2018 p.4). Netflix Inc. started its operations on April 14, 1998. Currently, the firm is the world's leading online television network with over 69 million subscribers in approximately 50 nations, who are enjoying over 2 billion hours of TV shows and movies per month. In 2017, Netflix screened its film known as "Okja", and it was not received well by the audience due to the technical issues it had (Vielen, 2018 p.4). Netflix has three packages that one can subscribe to; domestic streaming, international streaming, and domestic DVD. The members of one of these packages can enjoy uninterrupted play without commercials disrupting the films they are viewing. Netflix provided DVDs and Blue-ray titles to its subscribers. The company also operates a separate library of movies that can be viewed on subscriber's TV through a Netflix ready device. Netflix generates the majority of its revenue from its U.S. subscribers, through the monthly subscription fee payment of US$ 9) (Vielen, 2018 pp. 7-9). The emergence of video-on-demand (VoD) services in the U.K. is basically shaping how consumers view the content (Ampere Analysis, 2019 p.2). As the VoD market continues to grow, and new entrants compete for watching time, the effect will be felt across the entire U.K. video landscape (Ampere Analysis, 2019 p.2). The report will examine and recommend present and future strategic options that will help to further grow Netflix Company. Two theories have been used to explain how Netflix can use communication strategies to grow its subscription rates in the dwindling American market.
Strategic Options that Netflix Might Consider for Future Implementation Communication StrategiesNetflix Inc. demonstrates its organizational culture as unusual, particularly with regards to how workers are encouraged to conduct themselves in a professional manner, while in the workplace. It simply shows that Netflix lacks clear communication strategies between executive management and the subordinate staff. Netflix should develop a clear communication framework to develop the culture of trust, inclusivity, and sustain productivity among its workers as a way to support growth in a growingly competitive VoD digital media streaming industry. With the ever-growing focus to the study of peer-to-peer (P2P) advertising techniques, implementing a concomitant method deliver marketing messages that will attract clients in order to attain business model innovation is required (Ho, and Hsieh, 2012 pp. 535-536). Currently, Netflix has the largest market share in the U.S., and for them to gain leverage in other nations like the U.K., and Germany they will be required to develop proper marketing communication channels by augmenting their advertising service quality from 200 to 1600 (P2P) on the streaming packages the company currently provides to its consumers (Ho, and Hsieh, 2012 pp. 535-536). They can lure clients by providing them with a free two-month subscription, once they subscribe to their international package.
The analysis of the communication strategies that could be considered for future implementation at Netflix will be backed by two theories; Social Learning Theory (SLT) and Social Cognitive Learning Theory (SCLT). Social Learning Theory is increasingly seen as an important component of sustainable resource management and the promotion of desirable behavior change (Nabavi, 2012 p.5). Netflix should consider implementing a highly personalized media context as it will provide consumers with increased choice, control and opportunity for exploration of new content the moment it is released (Groshek, and Krongard, 2016 pp.4-5). Based on Social Learning Theory, the consumers will be more inclined to subscribe to Netflix since it is able to provide the latest episodes and films, and also the convenience being brought by the personalized media environment. The principles of social learning emanate from observation, imitation, and modeling (Nabavi, 2012 pp. 8-9). Based on these general principles, Netflix can leverage this by providing their consumers with the fastest internet, and 4k devices or higher in their platinum packages to encourage clients to subscribe to it. Social Cognitive Learning Theory (SCLT) will occur once the consumers you have satisfied in terms of content delivery and fast internet service begin to refer others to subscribe to Netflix (Nabavi, 2012 pp. 11-13). This is the simplest way for the company to grow its customer base in foreign nations, such as China. Netflix can include algorithms, a process that "ultimately exercises control over humans by harnessing these forces through creation of relationships between the real-world surveillance data and machines capable of making statistically relevant inferences about how content can be improved" (Groshek, and Krongard, 2016 pp.6-7).
Net Neutrality and NetflixNet neutrality is a principle that bars internet service providers like AT&T, Comcast, and Verizon from accelerating, slowing down or blocking any content or applications Netflix may intend to use. Consequentially, a firm like Netflix should not be speeding up content, eliminating contents from any industry. In the context of Netflix, it should maintain a credible reputation in such debated matters for its sustained acceptance across a wider clientele base. For instance, in 2015, a million activists forced the Federal Communications Commission (FCC) to integrate historic Net Neutrality rules that ensure the internet is free and open. This strategy will allow clients to share and access data of their colleagues without interference. Netflix should try to preserve a popular brand. Net neutrality is the principle that internet service providers and the government should treat all internet providers the same. It means that ISP's should not block or slow down traffic on their local broadband networks. This strategy will ensure that Netflix consumers can access any legal content they intend, while also ensuring that firms using these broadband networks reach their consumers without any problem. For example, Netflix and Comcast reached an agreement in 2014, after agreeing to pay Comcast for direct access to its broadband network.
Netflix is correctly credited with pioneering online video streaming (Khandelwal, 2020 n.p). With more than ten years of experience behind it, the firm is pulling all the right levers for progressive success in the long-term perspective. However, with stiff competition coming from Apple Inc. and Disney company, Netflix needs to revamp its content policy to gazump both firms. One of the primary factors contributing to Netflix's impressive subscriber growth is its focus on delivering captivating content. Even though Netflix began streaming as only a content distributor, it is important they continue to invest heavily in this segment. The company should realize that online streaming is the future, and it would only be better if they would form a strategic alliance with popular brands, such as Disney to deliver animation content targeting the young population who are more likely to compel their parents to subscribe them to one of their packages. It will help them to grow and sustain their customer base and revenue streams (Khandelwal, 2020 n.p). Netflix currently faces stiff competition for content from Warner Media and Disney who own one of the most captivating films like Star Wars, and Marvel and studios like Pixar (Khandelwal, 2020 n.p). To deal with the stiff competition, Netflix should discount their streaming packages, and also create their own blockbuster shows that resonate with their market target.
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