Question

Netflix is a content streaming company that provides a broad selection of on-demand original content, as well as content produced by movie studios and network television. The company has reached a near saturation point in the U.S. and has begun to expand its services abroad, first in countries that are close culturally and geographically to the U.S. Company leaders have been pursuing a typical international strategy by developing strong capabilities in technological innovation domestically and then using that base technology to expand abroad. Growth is challenged as the company navigates varied content licensing and competitors in the U.S. and abroad.

Identify two instances (one paragraph each) in which firms have had to deal with problems/issues arising out of international operations similar to what Netflix faced.

Answer 1

Solution:

Amazon had to face the similar situation in India on the revised E-Commerce policies which stated that the sale of private labels will be discouraged and E-Commerce platform cannot sell Exclusive items on their platform such as mobile phones, electronic gadgets etc. The policies also stated that the extent of discounts provided will be significantly reduced. These are the issues Amazon will be facing because of recently changed E-Commerce guideline by the Indian Government.

Google in China had to face the regulatory issues because of which it has not to be allowed to operate in that particular region and hence banning or disallowing Google to do business in the Chinese territories. The Issues have been posted due to inability to comply with the Chinese regulations which were anti-competitive as per Google's terms leading to the conclusion of not allowing Google to be present in China.

These are the two instances wherein firms faced similar challenges as that of Netflix.