The Netflix Strategy And Case Analysis -

The Netflix Strategy And Case Analysis

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Marketing Assignment Question


Netflix is a leading provider of video streaming to customers around the world. In this case  study, you are required to prepare a 3,000 word report that: (i) examines the rise of Netflix;  and (ii) considers its future in a highly competitive market. In preparing your report please  

consider whether Netflix’sstrategies will assist the company in realising its long term  objectives (hint: review the Netflix annual report and it strategy statements, which are available on its website). 

Your report must be structured as follows: 

  1. Introduction (5 marks
  2. Institutional Background (5 marks
  • A brief history of Netflix 
  1. This rise of Netflix (20 marks
  • Changing technology
  • Operating online
  • Pricing strategies
  • Netflix’sinnovations 
  1. Will Netflix remain the dominate provider of online video streaming? (15 marks) o 4.1 What is the Netflix strategy? 
  • How is Netflix currently performing
  • The future of Netflix

Marketing Assignment Solution

1. Introduction:

This study is about the strategy and management of Netflix in managing its performance in the competitive market. Netflix is basically a multinational company that serves different types of entertainments through digital mediums. The company was started in America and leading successfully from the year 1997 in streaming media. This company is specialized in on-demand online video serving by DVD and mail(Netflix 2017). To accomplish the task and keep the spirit on the management of operations, the application of strategy is required for this company. Strategy helps a company to manage its strategy and to accomplish the goals. The competitive strategy enables a company to choose different sets and pattern of the activities that will help in return to deliver a unique value. Strategic decisions are helpful for organizations to foster the scopes of the organization and to manage long-term direction for the company. This company aims to reinstate the concept of the internet in the market in a completely innovative way. Therefore, the rise and the future trend in context to the journey of Netflix have been detailed in this study with proper reference to its strategic strategy management.

2. History on Netflix:

Netflix has started its journey in 1997. This is basically a multinational entertainment based company originated in America(Netflix 2017). Marc Randolph and Reed Hastings started this company. Both the founders are recorded to be the ex-employee of Pure Software. The earned concept and gained knowledge are the accelerating wills behind this foundation of Netflix. This company first started with DVD by mail business. It created a revolution by the inhabitation of streaming media. The services it offers found dimension in Blu-ray rental services. With magnificent service, this company has expanded its business over 190 countries(Netflix 2017). The attempt of the company is innovative as it offered its people with an alternative way of downloading. As stated by(Mazziotti 2016), this is a partnership business, the skill, knowledge, profit, and loss, investments are also shared.Thus, the contribution of the founders is and profit will also be divided among them. Both the founder, Marc Randolph and Reed Hastings had gained skill and knowledge from their previously working companies and applied those learning in Netflix. This has incredibly managed the company creating renovation in the technology of the twentieth century.

As mentioned by (Adhikari 2015), at the early stage, Hastings contributed an investment of dollar 2.5 million with idea and planning of Ralph. This company was small in the corpse and had only 30 employees. They started activating the plan with help of 925 workers in a pay-per-rent model system. This model implies a payment of US dollar 50 a day for each employee with a mention of the late fine(Netflix 2017). The idea of generating this company was included in selling items over the internet. This idea has doubled up the enhancement of technological use and its applications. By being a medium of entertainment, it has provided the customers with innovative film production and distribution along with some television productions. However, this organization has achieved a number of awards for its contribution to improvise the digital media(Böttger 2016). This company did not have any clear vision and focus at the beginning. With the successful attempt on DVD by ‘’mail’’ business or stream video, it has structured up the main objective towards creating the revolution in the entertainment services.

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