Essay on Netflix: Reevaluating Strategies to Increase World Viewer Customers

Introduction

Netflix is the world's most famous network internet television that has recognizable brands with huge following. Though a service in rental DVD was their starting point, the company has gained popularity despite the difficulties encountered in positive cash flow sustainability. The online streaming market is changing, hence the need for Netflix to re-evaluate its strategies within and increase world viewer customer.

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Problem Statement

The dynamic trends on the market of streaming online are uncertain to sustain and bring the success that Netflix is projecting in the future. Having a clear view of the strategic challenges will help Netflix to boast its dominance in the market (Minzheong, 2020). Netflix business model needs to focus on user-friendly approaches, update movie selection software, handsome net profits, reduce operating expense, improve its delivery approach, and ensure excellent video streaming facility. The global strategy needs to focus on using algorithms to enable their global customer to enjoy content in their language hence increase local content consumption.

Analysis

Netflix internal analysis looks on the identification of unique embedded strength, knowing their capabilities and resource to gain a competitive advantage in regards to their competitors. Strategy of thinking for Netflix depends on the SWOT analysis which will lead the company to opportunities capitalization and reach more international market as the content will be tailored culturally. Weaknesses such as high cost to develop brand loyalty and dependence on suppliers’ networks can amicably be analyzed to link with the expansion plan. New opportunities to increase revenue streams in the technology platform should be encouraged to minimize threats of piracy due to deregulation of the industry in other countries. The situational analysis also needs to be considered and focus on changing customer watching methods, perspective on quality services, and buying behavior. Wayne (2020) argue that competitive environment analysis requires an understanding of the indirect and direct competitors and incorporating different strategies to reduce other firms’ dominance in the market. Industrial analysis will focus on the buyer power, purchasing as well on demand both on local and global platforms, gauge the customer loyalty and lower prices to boost more custom traffics to put Netflix on a trajectory path to global expansion.

Alternative

Netflix can employ the rapid expansion whereby the experts will come up with marketing tactics that boost preference of the contents, expanding operation, and device support. Poster-learning, faster expansion by partnering with local and international investors in data analytic and localized content. The company should adopt a selective market entrance where Netflix will consider a less differentiated approach to enter the market learn capability enhancement by concentrate on less funding, less licensing by focusing on original content. Continuous growth should focus specifically on the international market as a priority.

Recommendation

Netflix needs to focus on technology improvement by concentrating on penetration on global games and consoles on televisions. Online service and mail order speed are of high relevance to reach the global market. Allocating resources to countries with high pressure of localization with promising satisfaction will be a unique strategy for Netflix. The company should also incorporate third-party content and sell them as a way of diversification. Nevertheless, original content should be emphasized to avoid lawsuits.

Implementation

Netflix needs to have a third party separate platform from the existing one in other countries. Ratings should also be done on an annual basis, and phasing out content that are non-Netflix should be considered, and quarterly basis identification of the market that Netflix can penetrate in other countries. The company should focus on best practices as dubbing language, generating local content, and having companies’ joint ventures as localization, and launching marketing strategy that is multi-channel as an awareness campaign.

References

Minzheong, S. (2020). "A case study on partnership types between network operators & Netflix: Based on corporate investment model." International Journal of Internet, Broadcasting and Communication, 12(1) 14-26.

Wayne, M. L. (2020). Global streaming platforms and national pay-television markets: a case study of Netflix and multi-channel providers in Israel. The Communication Review, 23(1), 29-45.