Executive Summary
Case Statement:
Netflix has the opportunity to dominate the international streaming media market.
Mission and Vision Evaluation:
Netflix does not have an official publicly available vision or mission statement. Netflix does have a strategy statement that provides a good expiation of the current market trends and anticipated direction. Due to market fluctuations and dependence upon technology, having a strategy statement does suit the company and provide a good understanding of the situation. A vision and mission statement were included based upon my understanding of the company objectives and direction.
Milestones:
International expansion
Proprietary technology that enhances consumers search process and provides suggestions based upon previously view material.
Company CEO named Fortune Magazine’s business person of the year in 2010.
External Assessment:
Customers prefer content by way of streaming via the internet. This is exactly Netflix’s focus.
Customer want the ability to watch content from multiple platforms and from different locations simultaneously. Netflix has provided this service and excelled its availability and use.
Customers want additional content. Netflix works vigorously to attain new content to keep customers happy.
Internal Assessment:
Deals were made with Paramount Pictures in Canada to increase local content for international customers.
A major strength is that Netflix provides multiple subscription services are provided to give customers different abilities to acquire content that they want to see.
A possible problem is Netflix charges additional fees for Blu-Ray videos. This may limit their selection.
Industry Analysis:
While competition is strong and there are many powerful companies involved there is still very much an opportunity for new companies to enter the market. This may be done mostly by dipping into a niche and growing from there. The ability for Netflix to provide new or innovative products is limited so they must remain focused on creating advanced technology to beat out competitors.
Financial Analysis:
Netflix is performing at par with the rest of its competition. With its almost nonexistent inventory levels, Netflix does not need to track or maintain efficiency in that sense. Netflix leads its industry competitors only in its return on invested capital.
Competitive Strategies:
Invest in international infrastructure - This process would allow Netflix to conduct advanced planning as a long term objective to incorporate itself into international markets.
Team with international market leaders - This process allows Netflix to begin planning agreements with content holders and begin acquiring customers quickly. Netflix can utilize local content to draw in customers and marketing agreements to publicize itself.
Recommended Strategy:
Teaming with international market leaders was selected from the QSPM as the most appropriate means to attend to the case statement. This strategy allows Netflix to expand rapidly and to draw in customers already loyal to those business partners.
Ethical and Social Responsibility Dimensions of the Recommended Strategy:
Netflix is able to maintain is social ethical stance by continuing to provide the public with low cost reliable services. By partnering with industry leaders they are able to take a positive step in this direction.
Implementation Plan:
Since many departments are involved there must be coordinated processes that support each other. First, ensuring Netflix can legally operate in the area. Then Netflix must acquire the facilities needed to operate as well as securing local content contracts. Marketing is processed from the start providing updates on content and service availability. Many processes can be covered by current working capital but debt financing will be utilized to procure facilities, contracts, and content.
Case Statement:
Netflix has the opportunity to dominate the international streaming media market.
Mission and Vision Evaluation:
Netflix does not have an official publicly available vision or mission statement. Netflix does have a strategy statement that provides a good expiation of the current market trends and anticipated direction. Due to market fluctuations and dependence upon technology, having a strategy statement does suit the company and provide a good understanding of the situation. A vision and mission statement were included based upon my understanding of the company objectives and direction.
Milestones:
International expansion
Proprietary technology that enhances consumers search process and provides suggestions based upon previously view material.
Company CEO named Fortune Magazine’s business person of the year in 2010.
External Assessment:
Customers prefer content by way of streaming via the internet. This is exactly Netflix’s focus.
Customer want the ability to watch content from multiple platforms and from different locations simultaneously. Netflix has provided this service and excelled its availability and use.
Customers want additional content. Netflix works vigorously to attain new content to keep customers happy.
Internal Assessment:
Deals were made with Paramount Pictures in Canada to increase local content for international customers.
A major strength is that Netflix provides multiple subscription services are provided to give customers different abilities to acquire content that they want to see.
A possible problem is Netflix charges additional fees for Blu-Ray videos. This may limit their selection.
Industry Analysis:
While competition is strong and there are many powerful companies involved there is still very much an opportunity for new companies to enter the market. This may be done mostly by dipping into a niche and growing from there. The ability for Netflix to provide new or innovative products is limited so they must remain focused on creating advanced technology to beat out competitors.
Financial Analysis:
Netflix is performing at par with the rest of its competition. With its almost nonexistent inventory levels, Netflix does not need to track or maintain efficiency in that sense. Netflix leads its industry competitors only in its return on invested capital.
Competitive Strategies:
Invest in international infrastructure - This process would allow Netflix to conduct advanced planning as a long term objective to incorporate itself into international markets.
Team with international market leaders - This process allows Netflix to begin planning agreements with content holders and begin acquiring customers quickly. Netflix can utilize local content to draw in customers and marketing agreements to publicize itself.
Recommended Strategy:
Teaming with international market leaders was selected from the QSPM as the most appropriate means to attend to the case statement. This strategy allows Netflix to expand rapidly and to draw in customers already loyal to those business partners.
Ethical and Social Responsibility Dimensions of the Recommended Strategy:
Netflix is able to maintain is social ethical stance by continuing to provide the public with low cost reliable services. By partnering with industry leaders they are able to take a positive step in this direction.
Implementation Plan:
Since many departments are involved there must be coordinated processes that support each other. First, ensuring Netflix can legally operate in the area. Then Netflix must acquire the facilities needed to operate as well as securing local content contracts. Marketing is processed from the start providing updates on content and service availability. Many processes can be covered by current working capital but debt financing will be utilized to procure facilities, contracts, and content.