Question

What approach to the Strategy process does Netflix follow and why? What are some challenges with this process especially as Netflix continues to grow fast? . How was Netflix able to disrupt the U.S. home entertainment industry? How did Netflix's business change over time? . Netflix growth seems to be maturing. How does Netflix increase its services in the United States? What other services could Netflix offer to drive growth?

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https://www.studocu.com/row/document/national-university-of-sciences-and-technology/enterprise-management/other/netflix-inc-case-study/3068424/view

Answer 1

Netflix Inc. is a company which has their main focus on movies and series, and the production of original content. Moreover, the company’s business model also includes a flat subscription revenue model, in the absence of advertising within the streaming platform. Furthermore, Netflix’s intensive growth strategies and generic strategy for competitive advantage require management initiatives that extent beyond streaming operations. The company focuses on immense strategies, competitive advantages etc to make their company one of the top online earning company all around the world.

Netflix Inc.’s business model gets aligned with the company’s generic strategy for competitive advantage and extensive growth strategies. This alignment is seen as a factor in the company’s strategic position as a leading competitor in the on-demand and anytime digital content streaming industry. Netflix’s generic strategy ensures that its business model works through suitable competitive advantages and gains enough market brand name and standing to earn the money while charging prices higher than that of their competitors.

Netflix’s extensive growth strategies promote business development while these competitive forces are addressed. Alignment of these growth strategies with the generic strategy and business model ensures the operational effectiveness and efficiency and benefits of the corporation’s competitive advantages.

The company is a very good example of how online e-business modeling provides the abilities and the capability for large-scale high-efficiency operations and working of the business, while minimizing the costs associated with it.  Netflix’s operations exhibit the following business models:

1. Platform (digital media marketplace) and Pipeline (entertainment content production, etc.) business models: By providing the original content which is not available anywhere else and also a medium and a place where all of your favourite movies and episodes can be streamed out, it is a very effective reason for its growth.
2. Cutting-out-the-middleman business model and providing a direct business to consumer relationship, the company reduces its cost and increases its profit associated with it.
3. Unlimited subscription business model (revenue model for unlimited online access) where the individuals and the people all around the world are tend to get attracted with the lower prices for the subscriptions and thus invest in the same where the business and the customer both remain satisfied.

Netflix’s Intensive Growth Strategies

1. Market Penetration is the main extensive and intensive growth strategy of Netflix Inc. in expanding and diversifying its business operations and multinational market reach. This  growth strategy involves selling more of the online company’s streaming services in the markets that the business already has. This growth strategy’s objective of growing revenues and market share depends on how Netflix’s generic strategy maintains competitive advantages to gain and retain more customers in current markets.

2. Market development works by selling the Netflix's current online streaming service and original content to new markets all around the world. For example, in applying this growth strategy, one of Netflix’s goals is to grow the business by entering more countries, which serve as new markets.

Netflix’s generic strategy focuses on maximizing the competitive advantages of high operational efficiencies and cost effectiveness of information technologies. The company’s intensive growth strategies require aggressive marketing to expand multinational streaming operations.