netflix international expansion case study solution

The marketplace for case solutions.

Netflix: International Expansion – Case Solution

Netflix: International Expansion case study focuses on the company as it expanded and dominated the video streaming industry all over the world. It discusses the challenges the company faced with such expansion and how it tackles such issues.

​Won-Yong Oh and Duane Myer Harvard Business Review ( W16236-PDF-ENG ) April 26, 2016

Case questions answered:

Case study questions answered in the first solution:

• Describe the market, legal, cultural, and/or institutional environment in which Netflix operates and the critical operational factors that you must consider and how they will affect your company’s success in globalization.
• Discuss the kinds of communication problems managers sent from their home country (i.e., United States) might face in the host-country market, legal, cultural, and/or institutional environment. How should they prepare for and deal with these problems?
• Imagine yourself as a Chief Human Resources Officer of Netflix and decide on the staffing policy you will use for top-level managers. Would you hire a) PCNs, b) HCNs, or c) TCNs? What would be your rationale for choosing this policy? What would be the potential disadvantages of your chosen staffing policy?
• Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis for Netflix. Moving forward, provide strategic suggestions to the current CEO, Hastings, based on that analysis.

Case study questions answered in the second solution:

• Analyze the global profitability of the industry in which Netflix operates. Use the model of Porter’s five forces.
• Perform an analysis of Netflix’s strengths, weaknesses, opportunities, and threats (FODA). Provide strategic suggestions based on that analysis.
• Define Netflix’s competitive advantage. Why is Netflix so successful?
• How would you recommend that Netflix overcome its challenges in the international market?
• In the future, what strategic actions might Reed Hastings consider?

Not the questions you were looking for? Submit your own questions & get answers .

Netflix: International Expansion Case Answers

You will receive access to two case study solutions! The second is not yet visible in the preview.

1. Describe the market, legal, cultural, and/or institutional environment in which Netflix operates and the critical operational factors that you must consider and how they will affect your company’s success in globalization.

Netflix’s business strategy is reliant on complete Internet connectivity. Its effective incorporation and exploitation of the Internet in competing with and then overcoming rivals (Blockbuster) in the home entertainment sector and building a reputation for itself at a global level.

Market and Institutional Environment

Changes in how people watch television and movies have resulted from the rise of the Internet television and multimedia industries. The growth of smartphones on which to view material over the internet has benefited the industry as a whole.

While a handful of corporations have historically controlled the sector, many others have eyed the lucrative online video-streaming market as a place to grow.

While Netflix still held a substantial piece of the market, other new competitors with distinct advantages have altered the playing field.

Hulu was one such business. It was a division of Hulu LLC, which itself was a partnership between Disney, NBC, and Fox.

Conceived and introduced in 2006, new competitors included international information technology corporations that widened their scope of operations to include the online video-streaming market.

One such company is the online retailing behemoth Amazon, which leveraged its massive user base, well-known brand, and robust computing infrastructure to introduce its Amazon Video service.

Legal and Operational Factors

Netflix, as an American firm, was nonetheless bound by laws and regulations enacted by the United States government. For example, its expansion to countries like Syria was noticeably absent from its growth announcement in January 2016 as a result of these limitations.

It is crucial to research government legislation that could have an impact on the company before expanding into a new market. Data security has become increasingly vital as technology has progressed. Customers in that country need to have their rights to intellectual property, consumer protection, and data security respected.

Similarly, users often share credentials with one another. Therefore, simultaneous streaming on many devices should be monitored.

Copyright issues pose the greatest threat to Netflix. Therefore, it is imperative that they obtain the appropriate licensing for the television shows and movies they are airing.

They may also have trouble meeting local ownership requirements for content streaming services in some jurisdictions outside the country where their headquarters are located. Netflix must also employ a number of technical measures to prevent content theft by users in different jurisdictions.

Operational Factors

When a company’s quick growth allows it to enter profitable markets abroad, they are said to have “gone global. The critical operational factors Netflix must keep in mind during international business are considering the social differences, laws, and regulations regarding online business, recruiting local employees, and considering financial costs.

By considering and evaluating all these factors, the company would be better able to achieve its goals in a new market.

2. Discuss the kinds of communication problems managers sent from their home country (i.e., United States) might face in the host-country market, legal, cultural, and/or institutional environment. How should they prepare for and deal with these problems?

Managers from their home country can face several problems in…

Unlock Case Solution Now!

Get instant access to this case solution with a simple, one-time payment ($24.90).

After purchase:

• You'll be redirected to the full case solution.
• You will receive an access link to the solution via email.

Best decision to get my homework done faster! Michael MBA student, Boston

How do I get access?

Upon purchase, you are forwarded to the full solution and also receive access via email.

Is it safe to pay?

Yes! We use Paypal and Stripe as our secure payment providers of choice.

What is Casehero?

We are the marketplace for case solutions - created by students, for students.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

How Netflix Expanded to 190 Countries in 7 Years

• Louis Brennan

The majority of its revenue now comes from outside the U.S.

Netflix’s global growth is a big factor in the company’s success. It operates in over 190 countries, and its international streaming revenues now exceed its domestic revenues. But only eight years ago Netflix was only in the U.S. How did it expand so quickly? First, it didn’t enter all markets at once. It started slowly, in countries that were similar to its U.S. home market. Using what it learned in these markets, it expanded to a few dozen countries by 2015, and then continued learning and growing from there. Second, it adapted to local cultures and preferences, using that knowledge to appeal to customers all over the world, both with its content offerings and with the partnerships it formed with local stakeholders. Netflix’s strategy constitutes a new approach to growth that the author calls exponential globalization , and it’s one that other companies can use too.

Netflix’s global growth is a big factor in the company’s success. By 2017 it was operating in over 190 countries, and today close to 73 million of its some 130 million subscribers are outside the U.S. In the second quarter of 2018, its international streaming revenues exceeded domestic streaming revenues for the first time. This is a remarkable achievement for a company that was only in the U.S. before 2010, and in only 50 countries by 2015.

• LB Louis Brennan is a professor at the Trinity Business School at Trinity College Dublin. His areas of teaching and research interest include international business and operations strategy.

Partner Center

Brought to you by:

Netflix: International Expansion

By: Won-Yong Oh, Duane Myer

Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the…

• Length: 11 page(s)
• Publication Date: Apr 26, 2016
• Discipline: General Management
• Product #: W16236-PDF-ENG

What's included:

• Teaching Note
• Educator Copy

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the production of in-house content. In January 2016, to deal with slow growth in the domestic market, the company announced an aggressive expansion of its services into a total of 190 countries, thereby giving Netflix coverage over nearly the entire world. International expansion did not come without its challenges. Netflix faced regulatory compliance issues in its targeted markets, competition with domestic competitors, and the need to satisfy local preferences. Was the enormous cost of such an aggressive expansion strategy the right direction for the company?

Won-Yong Oh is affiliated with UNIV OF CALGARY.

Learning Objectives

This case is suitable for various business courses, including international management, technology management, international marketing, and strategic management, at both the undergraduate and graduate (MBA) levels. By understanding these objectives, students can also learn the process of a firm's strategic actions, such as international expansion, and they can think about how to effectively implement such strategic initiatives. After completion of this case, students should be able to: -Understand a company's motivation to expand internationally. -Assess the structure and technological development of the industry. -Identify a firm's competitive advantages. -Evaluate the benefits and costs of international expansion.

Apr 26, 2016

Discipline:

General Management

Ivey Publishing

W16236-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Fern Fort University

Netflix: international expansion case study analysis & solution, harvard business case studies solutions - assignment help.

Netflix: International Expansion is a Harvard Business (HBR) Case Study on Leadership & Managing People , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Leadership & Managing People Case Study | Authors :: Won-Yong Oh, Duane Myer

Case study description.

Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the production of in-house content. In January 2016, to deal with slow growth in the domestic market, the company announced an aggressive expansion of its services into a total of 190 countries, thereby giving Netflix coverage over nearly the entire world. International expansion did not come without its challenges. Netflix faced regulatory compliance issues in its targeted markets, competition with domestic competitors, and the need to satisfy local preferences. Was the enormous cost of such an aggressive expansion strategy the right direction for the company? Won-Yong Oh is affiliated with UNIV OF CALGARY.

International business, Internet

Order a Leadership & Managing People case study solution now

To Search More HBR Case Studies Solution Go to Fern Fort University Search Page

[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the leadership & managing people.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Leadership & Managing People. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Netflix: International Expansion HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Netflix: International Expansion Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Netflix: International Expansion

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Netflix: International Expansion . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Netflix: International Expansion
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Netflix: International Expansion HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Netflix: International Expansion

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Netflix: International Expansion

Another way of understanding the external environment of the firm in Netflix: International Expansion is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Netflix: International Expansion Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Netflix: International Expansion case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Netflix: International Expansion case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

Previous 5 HBR Case Study Solution

• Billionaire's Curse: Gun-based Succession Planning for a Bangkok Market Case Study Solution
• Valley Carriers (A): Establishing Status in a Family Business Case Study Solution
• Valley Carriers (C): Restructuring the Governance of the Family Firm Case Study Solution
• Born Global: Timeless Herbal Care Prepares to Supply Medical Marijuana to Canadians Case Study Solution
• Valley Carriers (B): Working on Versus Working in the Business Case Study Solution

Next 5 HBR Case Study Solution

• Spotify Case Study Solution
• Seaworld: Are Animal Shows Sustainable after Blackfish? Case Study Solution
• Live from the Met: Opera in the 21st Century (A) Case Study Solution
• Live from the Met: Opera in the 21st Century (B) Case Study Solution
• wetlandPOOLS: Wetlands and Blue Oceans Case Study Solution

Special Offers

Order custom Harvard Business Case Study Analysis & Solution. Starting just $19

Amazing Business Data Maps. Send your data or let us do the research. We make the greatest data maps.

We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more.

Buy Professional PPT templates to impress your boss

Nobody get fired for buying our Business Reports Templates. They are just awesome.

• More Services

Feel free to drop us an email

• fernfortuniversity[@]gmail.com
• (000) 000-0000

Product details

• Order Status
• Testimonials
• What Makes Us Different

Netflix: International Expansion Harvard Case Solution & Analysis

Home >> Human Resource Cases >> Netflix: International Expansion

Netflix embraced an aggressive growth strategy to create itself as an international force in the video streaming business. To thus cement its leading position in the market, Netflix invested greatly in the creation of in house content. Into a total of 190 nations, to cope with slow increase in the domestic market, the company announced an aggressive expansion of its services in January 2016, thereby giving Netflix coverage over virtually the whole world.

Netflix faced the need to satisfy local preferences, competition with domestic adversaries, and regulatory compliance issues in its targeted markets . Was the enormous price of this kind of aggressive expansion strategy the right path for the firm?

PUBLICATION DATE: April 26, 2016 PRODUCT #: W16236-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

Related Case Solutions & Analyses:

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

• Accounting Case Solutions
• Auditing Case Studies
• Business Case Studies
• Economics Case Solutions
• Finance Case Studies Analysis
• Harvard Case Study Analysis Solutions
• Human Resource Cases
• Ivey Case Solutions
• Management Case Studies
• Marketing HBS Case Solutions
• Operations Management Case Studies
• Supply Chain Management Cases
• Taxation Case Studies

More From Human Resource Cases

• The Psychology Of Behaviorally-Focused Resumes On Applicant Selection: Are Your Hiring Managers Really Hiring The 'Right' people For The 'Right' Jobs?
• American Express Canada
• Corruption in Russia: IKEA's Expansion to the East (C)
• Pandora: Royalties Kill the Web Radio Star? (A)
• Canaan Group: Port Metro Vancouver Container Trans-Load Service
• Transforming Companies Into Respected Institutions: A More Holistic View of the Firm
• Chocolate Remedies: A Healthy Twist

Contact us:

Check Order Status

How Does it Work?

Why TheCaseSolutions.com?

The Remarkable Netflix Global Expansion Journey

Explore the story of how netflix became a global streaming powerhouse..

04 April, 2024

A prime example of a company that has successfully expanded its operations internationally is Netflix. Similar to the now streaming giant’s remarkable global growth from the United States to over 190 countries in just seven years, Centuro Global has successfully empowered numerous companies to venture into new markets .

Despite the hurdles businesses face in global expansion, such as regulatory compliance and cultural differences, Centuro Global has played a pivotal part in facilitating their clients’ worldwide growth through meticulous planning and expert execution.

This article will explore three key areas that helped Netflix achieve success, namely:

• Market choice;
• The Role of Data and Localisation; and
• How the company overcame Challenges.

So let’s get started!

1. How Netflix Carefully Chose Its International Markets 

When entering new countries , Netflix initially selected its following markets based on similarities to mitigate potential cultural and geographical challenges.

One of the countries they first considered for its global expansion was Canada. This was because the market was very similar to the United States regarding culture, language, and geography. This made it easier for the company to expand into Canada and tailor its content offerings to suit this new market.

Netflix officially launched into the Canadian market in September 2010, kickstarting its first foray into international markets. Pricing was an essential consideration to win market share, and the initial subscription fee was priced at $7.99 per month, which Netflix CEO Reed Hastings referred to as “the lowest, most aggressive price we’ve ever had anywhere in the world.” This key initiative in Netflix’s business model was to attract users quickly.

Even with the low price tag, Canadian content availability was minimal. According to Canadian Business Online, by 2012, there were 10,625 distinct Netflix titles in the United States, whereas in Canada, there were only 2,647.

However, despite the initially limited content, it took the company attracted one million subscribers in less than a year, roughly three per cent of Canada’s population. This was an impressive feat!

The choice of Canada proved to be an excellent success for the company. It exemplifies how choosing a similar market to your home country can be a relatively easy first step in your international expansion plans.

Latin America & The Caribbean

Once Netflix had expanded into Canada, the next logical step in its global expansion journey was to expand into Latin America and the Caribbean due to the region’s proximity to the United States.

At this point, the business had around 23 million subscribers across the United States and Canada. Successful expansion into the Latin American market would provide them access to over 600 million potential new subscribers.

On announcing its international expansion into the region, Netflix’s share price surged by 8%, taking it to record levels.

In September 2011, the firm began its expansion to 43 countries and territories in Latin America and the Caribbean, with content available in Spanish, English, and Portuguese. Brazil was the first country in Latin America to go live with the service on September 5th. The streaming service was priced at around $9.10, making it more expensive than in North America.

Following Brazil , Netflix continued its expansion in Latin America. In the subsequent days, the company launched in Argentina, Chile, Colombia, and Mexico before expanding into 38 countries in the next weeks. The company partnered with CBS, Miramax, and Showtime to share local content in the region.

However, there were challenges in Netflix’s global expansion into Latin America and the Caribbean. The lack of high-speed internet compared to the US and Canada proved to be an initial setback.

For example, in 2011, only 20% of Brazil’s population had an internet speed greater than 500 kB/s a second. This proved an issue as the streaming service required rates of 800 kB/s a second to stream its content.

The second major challenge was that the banking system in LATAM was not used for monthly recurring payments for a service. Given that this was the first streaming service to launch in the region, with no competitors, there was a reasonable degree of initial apprehension around the concept.

Nonetheless, while this hindered rapid growth, there was enough uptake to consider the expansion into the region a success.

Following the above-mentioned global expansion successes, Netflix turned to Europe in 2012. The expansion into the United Kingdom was a great success. By 2014, one in ten British households was subscribed to Netflix.

They developed a great strategy for its international expansion based on its choice of content in new regions. “They start with a tiny offer that doesn’t cost them much money and lowers their risk. Then they collect specific information about what people enjoy, and programming and investment around consumer behaviour are organized,” according to Christof Baron, CEO of the world marketing firm Mindshare.

In the UK, they started with content from the BBC, Channel 4, and ITV to gain initial traction. Then, they reviewed the type of content people enjoyed.

2. The Role of Data and Localisation in Expanding Internationally

Tailored thumbnails.

Netflix has excellent attention to detail. It even considered how viewers from different geographies would react to other images on the thumbnail.

People are far more likely to view something if the thumbnail shows something that appeals to them. The old saying goes that a picture is worth a thousand words, and in the case of our subject, the more you watch, the more likely you are to keep your subscription.

Based on this, Netflix cleverly generates many possible thumbnails for each piece of content. Their algorithm then looks at your viewing habits to match the most relevant thumbnail.

If you watch a lot of romantic comedies, Netflix will show you a Stranger Things thumbnail with Winona Ryder and David Harbour to capture your interest. If you watch more comedy content, the algorithm will instead show you a Stranger Things thumbnail with the kids dressed up as Ghostbusters.

Personalisation algorithms

Netflix used data to select its following markets carefully and tailor content based on the regions they were targeting.

The platform’s personalization algorithms enabled the company to understand global user behaviour and preferences. This allowed them to create a content strategy tailored to each market, which was critical to their success.

When entering Asia, the company learned that Asian audiences were likelier to watch shows with subtitles rather than dubbed versions. In contrast, Latin American audiences preferred dubbed content. This data proved invaluable in Netflix’s international strategy for localising content.

Language Considerations

To ensure that its content was accessible to as many people as possible, Netflix also translated its content into local languages and introduced subtitles and dubbing. Viewers in different countries could now enjoy the wide range of content available to them.

In English-speaking countries, Netflix aims to localize foreign titles using English subtitles. At the same time, in other important markets, such as France, Germany, Italy, Spain, and Japan, the company opts to subtitle or dub content based on local content preferences.

In India, the platform offers Hindi, Tamil, Telugu, Marathi, and Bengali content. In China, it provides a range in Mandarin and Cantonese.

By localising its content, Netflix has achieved global growth and become one of the most popular streaming services worldwide.

Original Content 

Not only does Netflix localise content, but it also creates original content based on local preferences. When expanding into Japan, Netflix saw that Japanese users watched many anime. In response, Netflix created an original anime series called “Devilman Crybaby,” which was extremely popular.

More recently, Netflix began to tweak local content to help its content simultaneously go global. For example, when the Korean movie Parasite became the first non-English language movie to win the Oscar for Best Picture in 2020, Netflix took real notice. K-Pop was globally successful, and on reviewing its data to see what sort of content global audiences were interacting well with, Netflix noticed a lot of success with Hunger Games.

Netflix took this analysis and created content in the form of the Korean show Squid Game, resulting in mass international success. Squid Game became the most-watched show in the history of Netflix within 6 weeks of launching.

3. Netflix’s challenges in entering new markets

Despite the phenomenal global success discussed above, Netflix’s expansion was not trouble-free and faced several challenges when entering new markets . We have already touched upon some of the issues it faced in Latin America concerning internet speed and the novelty factor. but what other challenges did it face?

Legal Issues 

In Australia, Netflix fell into hot water with local laws. TV Stations in Australia rejected Netflix’s classification as a technology company rather than a broadcaster, allowing it to avoid complying with certain local regulations. In response, the Australian government considered introducing a law forcing streaming companies like Netflix to invest in the local market.

Censorship Issues

Netflix has also faced censorship challenges in markets such as China, North Korea, and Saudi Arabia. Based on values held in different regions, certain content relating to the consumption of drugs, alcohol, or sexuality would have to be adapted or removed completely to satisfy local societal values and rules.

Netflix is currently unavailable in China but continues exploring options for entering the market.

Despite these challenges, Netflix has achieved global growth and become one of the most popular streaming services in the world. As of the beginning of the second quarter of 2022, Netflix has around 222 million international subscribers in over 190 countries, making the business a fantastic success.

Lessons from Netflix’s Global Expansion Journey

  Netflix’s global expansion into over 190 international markets has been a phenomenal success. This growth would not have been possible without Netflix’s careful planning and execution. So, what are the key lessons that expanding companies seeking to have similar success on a global scale can take from this?

• You can’t be in every country at once – start with those countries whose markets are most closely aligned to yours to ensure minimal cultural, language and regulatory complexity.
• Test the market initially and gather data to help you make decisions before fully committing and going all in.
• Even the most successful companies can face setbacks – don’t be disheartened by any challenges.
• Localisation is critical to success in new markets—if you don’t adapt your product, service, or offering to local markets, you have little to no chance of success.Ultimately, by understanding the needs and preferences of its target market, Netflix created a service that people loved. By making its content accessible to as many people as possible, it conquered foreign markets rapidly.

Embark on your global journey today!

Ready to expand your business worldwide? Centuro Global can guide you through the complexities of entering over 170 countries, providing insights on staffing, compliance with local laws, entity establishment, and more.

Craft your international strategy, network with on-the-ground experts, and oversee your expansion via our comprehensive platform, Centuro Connect. Contact us to learn more .

7 Things to Consider When Entering a New Market

In-depth with Global Women Leaders in the face of Covid-19 in the Services sector

Rebuilding after the South African lockdown and embracing the new norm.

Is the USA still the ultimate goal for expanding companies?

Centuro Global: The New Frontier to Global Expansion

2023 CENTURO INT-X AWARDS

Centuro Connect: The World’s First All Encompassing Global Expansion Platform

How the UK’s Statement of Changes Impacts Sponsor Licences

This is how the Spring 2024 Statement of Changes on UK visa and immigration policy impacts businesses & workers.

UK-India Young Professionals Scheme Ballot Opens for 2024

Explore the 2024 UK-India Scheme. Vital info for young professionals here

Navigating international tax compliance for globally mobile employees

Guide on global employee tax compliance, mobility challenges, and solutions.

Netflix Inc.’s Strategy, Innovations, Expansion Case Study

Introduction, netflix strategy, netflix and innovation, core competencies, growth maturation, international expansion.

Netflix is a U.S.-based corporation that provides customers with access to licensed video content through video rentals and online streaming. Having been founded in 1997 to take advantage of the improvements in the availability of Internet services, it has consistently introduced innovative approaches to the industry. As a result, it was able to become a market leader, but some issues accompanied its rise. Competing services were able to take advantage of these weaknesses and become viable alternatives to Netflix’s services. This case study will analyze Netflix’s past and current situation and provide suggestions for future actions and choices. It will also provide a scenario where the same variety of analyses can be applied in the author’s life to a familiar company or the family business.

Netflix relies on shows from content producers as well as its originals to attract and retain customers. In the VRIO model, both resources are valuable due to their ability to attract large audiences and interest them in other shows. They are rare because it is challenging and expensive to obtain the rights to a show (Rothaermel, 2016). They are costly to imitate because the famous actors involved tend to favor offers from existing large companies. Lastly, Netflix has been able to organize itself to take advantage of the resource. The development of original shows works well with this approach because competitors cannot obtain rights to these shows without negotiating with Netflix. However, the company’s fast growth may be outpacing the capabilities of the Internet, and some people cannot use its services to their full capacity.

Netflix’s innovations have consistently been focusing on the customers, increasing convenience for them and undercutting the competition. As a result, it introduced mail-based subscription services and then moved to Internet-based streaming. As a result, its innovations have been able to keep up with the advances in technology and capitalize on them ahead of the competition.

Primary Activities

• Inbound Logistics: Suppliers provide finished shows to Netflix directly.
• Operations: Netflix produces original shows and compresses the provided ones for online delivery.
• Outbound Logistics: Netflix relies on ISPs to deliver its shows.
• Marketing and Sales: Netflix presents itself as a superior alternative to traditional television and uses a subscription model.
• Services: Netflix provides customers with suggestions for shows that may interest them.

Support Activities

• Firm Infrastructure: Netflix has extensive management, financial, and legal systems.
• Human Resource Management: Netflix is renowned for its excellent approach to HR.
• Technology Development: Netflix relies on its technological capability to obtain a competitive advantage.
• Procurement: Most shows will only have one possible supplier.

Netflix’s core competencies are its resources and its subscriber base. They help the company procure shows, produce originals, and ensure that enough viewers watch them to justify the costs and attract more people. Most of its competitors lack either the resources or the customer base. To hone and modify these competencies, Netflix has to ensure that it keeps providing popular, high-quality content to people.

Porter’s Five Forces

• Threat of Entry: low due to the expensive deals and extensive infrastructure required.
• Power of Suppliers: high, as they have near-complete control over their shows.
• Power of Buyers: medium, as they can find the products elsewhere at the cost of a higher price and possibly worse convenience.
• Threat of Substitutes: low, as Netflix is phasing out most of its substitutes as a superior alternative.
• Competitor Rivalry: low, as most competitors rely on highly popular exclusives and do not offer most of the shows on Netflix.

Netflix can increase demand for its services by introducing high-quality shows and drawing public attention to them. To ensure future growth, it can try to capitalize on its current capabilities to offer a platform to independent content creators.

PESTEL Analysis

• Political: Medium importance; countries can ban Netflix over specific shows and ideologies, but most will not;
• Economic: Low importance; Netflix costs less than traditional TV, which most people can afford;
• Sociocultural: Low importance; Netflix mostly appeals to young people, who tend to appreciate innovation;
• Technological: High importance; a country needs widespread and fast Internet speeds to accommodate Netflix;
• Ecological: Low importance; Netflix does not harm the environment directly;
• Legal: Medium importance; licensing issues can arise in some countries;

Markets outside of the U.S. will have different cultures and may not be interested in its shows. The service can try to secure popular local shows to answer this issue pre-emptively, but the lack of suitable originals will hurt it. Netflix should focus on English-speaking, technologically advanced countries such as the United Kingdom as well as other Western nations such as the European Union first due to the similarity of their cultures.

Netflix’s strategy has enabled it to stay ahead of the market in the past and become an undisputable leader. Other services that emerge usually do not compete with it directly but aim to exist alongside it, offering a different product selection. However, the company is reaching market saturation in the U.S. and should consider expanding internationally. The tools used in this analysis can be applied to any company at any time. A likely scenario for their application to a family business would be when its sales would stall at a specific level or begin declining. The analysis would help the owners understand the reasons for this change and possibly offer ways to address it.

Collins, K. (2018). Net neutrality has officially been repealed. Here’s how that could affect you. The New York Times. Web.

Maheshwari, S., & Koblin, J. (2018). Why traditional TV is in trouble. The New York Times. Web.

Rothaermel, F. T. (2016). Strategic management (3rd ed.). New York, NY: McGraw-Hill.

Talbot, P. (2018). How to succeed in the new world of subscription-model marketing. Forbes. Web.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, August 7). Netflix Inc.'s Strategy, Innovations, Expansion. https://ivypanda.com/essays/netflix-incs-strategy-innovations-expansion/

"Netflix Inc.'s Strategy, Innovations, Expansion." IvyPanda , 7 Aug. 2021, ivypanda.com/essays/netflix-incs-strategy-innovations-expansion/.

IvyPanda . (2021) 'Netflix Inc.'s Strategy, Innovations, Expansion'. 7 August.

IvyPanda . 2021. "Netflix Inc.'s Strategy, Innovations, Expansion." August 7, 2021. https://ivypanda.com/essays/netflix-incs-strategy-innovations-expansion/.

1. IvyPanda . "Netflix Inc.'s Strategy, Innovations, Expansion." August 7, 2021. https://ivypanda.com/essays/netflix-incs-strategy-innovations-expansion/.

Bibliography

IvyPanda . "Netflix Inc.'s Strategy, Innovations, Expansion." August 7, 2021. https://ivypanda.com/essays/netflix-incs-strategy-innovations-expansion/.

• Netflix Goes Global and Its Profit Soars
• Netflix Internet Marketing
• Canadian Producer's Pitching to Netflix
• Huawei’s Opportunities in the US and Global Markets
• ITailor Company: Strategy Analysis
• Amazon’s Transportation Improvement Plan
• Travel Firm's Organisational Culture, Values and Beliefs
• Ceres Food Shop: Opportunities and Risks

Netflix International Expansion Case Solution & Answer

Home » Case Study Analysis » Netflix International Expansion

Netflix International Expansion

Internal analysis, competitive analysis, competitors.

The main competitors of Netflix Inc. include Hulu and Amazon. Although Netflix has a global market reach, it is not the only streaming video service in the world. Besides Netflix’s content, its competitors include Hulu, Amazon, and Disney. It has also made headlines for postponing investments in content creation because of production shutdowns. These rivals have increased their debt in recent years, and this has weakened Netflix’s position in the market.

Advantages to Competitors

Netflix has the largest market share, but Amazon Prime has smaller market penetration. And these companies have less market penetration than Netflix, which gives it a competitive edge. But Netflix also enjoys high customer satisfaction. The only major competitor that comes close to it is YouTube, which has been around for a long time. This has helped Netflix establish itself as a household name in the space of online streaming video.

VRIO Analysis

Competitive Advantages or strengths

As a content streaming service, Netflix offers its subscribers access to a huge library of entertainment. With over thirteen thousand titles, subscribers can watch movies, TV shows, and documentaries on any device with an internet connection. Netflix has a unique advantage over rivals in the marketplace because it can attract consumers with a diversified catalog of content. Besides being accessible on a variety of devices, Netflix also offers a low price point, making it a more affordable alternative to cable TV and going to the theater.

Netflix has many strengths that set it apart from its competition. It has a huge user base and brand equity. It has also spent a significant amount of money on research and development. The quality of its content is higher than its rivals. The company also has a larger subscriber base than rivals, allowing it to allocate content costs more effectively among its members.

A company’s resources comprise physical assets, intangible resources, and intangible assets. The company has a website and an app, as well as computer and filming equipment, human and digital resources, patents, trademarks, and social images. It also has studios and a brand that allows its subscribers to view its content anywhere they want. These resources give Netflix an unparalleled competitive edge.

Capabilities

Netflix has two core capabilities that have helped it reach a global audience and become the market leader in digital media streaming. First, it can respond to IT trends and facilitate the distribution of digital content. Second, it can maintain a leading position in the industry by being customer-oriented. Netflix also selects the products that it distributes based on the preferences of its customers.

Finally, it has a strong brand and culture. This is an advantage for Netflix, as it increases its bargaining power against rivals who cannot replicate the company’s quality of service. With its huge user base, Netflix is difficult to replicate, which means it will be less vulnerable to competitive pressures, pricing changes, and marketing campaigns. However, it has some significant competition. If this is the case, then Netflix will continue to dominate its market and gain a significant edge.

SWOT Analysis

The streaming service has several strengths. All connected devices have access to the company’s original content. The content is of high quality and has a high subscriber base. It also offers offline streaming. It also has a huge library, and it offers original content. There is also no need to download software to enjoy Netflix on multiple devices. Its services are available in over 190 countries, and users can subscribe to the service in any of them.

The company’s user interface is excellent. It customizes the experience for every user and suggests new content based on the preferences of the viewer. The user interface is easy to use. The service is also affordable.

The biggest weakness of Netflix is that it has an imitable business model. Because of this, other companies might copy its model and gain a competitive advantage. In addition, Netflix does not have patented technology, making its business model highly susceptible to imitation. In addition, the company relies heavily on content producers, whose strategies are difficult to predict. The company also consumes vast amounts of resources. For example, it takes a great deal of time and money to broadcast its content around the world.

Opportunities

One opportunity that Netflix is taking advantage of is the global subscription base. With its recent expansion, it has increased its customer base and is now available in many countries worldwide. Despite the competition, Netflix does not own the rights to most videos. Many of these rights expire and content appears on other sites. As a result, Netflix is looking to increase its content licensing and production, besides expanding its library of movies and TV shows.

Besides attracting customers, Netflix has also attracted new competitors, such as Amazon, Apple, and Facebook, into the streaming market. These competitors are aggressively pursuing the streaming business. Netflix needs to improve its financial position and diversify its content by entering new markets and expanding its contracts with original video producers and film distributors. It must also update its library of content to remain competitive. Currently, Netflix relies on licensing deals to produce new content, but it can also work with local broadcasters to expand into new markets.

Market Analysis

The video streaming market is regionally segmented by solution type, end-user, revenue model, and region. The North American region accounted for 38.7% of the market in 2018, largely driven by major players in the U.S. However, the Asia-Pacific region is expected to grow at the fastest CAGR, with rapid technological advances and a growing population who consumes online content.

Although Netflix has a global reputation, it faces competition from local content providers. Increasing its local content, such as original videos and movies, can help it reach a wider audience. While local television and film distributors are a significant source of revenue, rivals in the streaming market are making their content more attractive and popular. One of the biggest opportunities for Netflix is collaborating with local broadcasters to produce content tailored to specific regions. The company has had success producing blockbuster hits in niche markets.

Despite Netflix’s popularity, it faces many competitors, including Blockbuster, Time Warner, Direct TV, and Movie Gallery. It competes with emerging companies like Amazon and Redbox, but not as a direct threat. Despite these challenges, Netflix has retained its good image and has outpaced its competitors. The main competitors of Netflix Inc. include Hulu, Amazon. Netflix has the largest market share, but Amazon Prime has smaller market penetration. And these companies have less market penetration than Netflix, which gives it a competitive edge. But Netflix also enjoys high customer satisfaction.

Profitability Analysis

From the ratio analysis, it could be seen that Netflix is doing a lot better than its competitors. To remain competitive, Netflix must pay attention to user engagement and attract new users with quality content. Netflix has put most of its profits and revenue into original content. However, the company has added operating costs. The company’s profit margins are also higher than their competitors. With a diverse membership base and a growing subscriber base, Netflix is not likely to see a decline in revenue. Further, if the company can keep investing in original content, it could reach profitability in the next few years.

Recommendations and Conclusion

As the popularity of streaming video services has grown, Netflix has also faced criticism from various groups and individuals. However, the company has proven its ability to weather any storms it faces. By spending so much money on original content, Netflix can stay ahead of the competition. The company’s future could be bright if it embraces these emerging technologies and makes the content available in headsets. It has to make sure it stays ahead of the curve.

Netflix is not the only digital streaming service in the world. It faces increasing competition from Apple TV+, Hulu, YouTube, and design. There are also challenges posed by government regulations and digital piracy. These factors can make it difficult for Netflix to maintain its growth rate. Netflix needs to diversify its user base to keep up with these challenges. And Netflix should consider this when evaluating its strategies. The company has transformed itself over the years and is now a recognized global video entertainment company. Today, Netflix operates in over 190 countries, including the United States. The company also has customers in over 90 countries around the world. Besides streaming, Netflix operates in many vertical markets, including mail-delivery, DVD vending kiosks, and video-on-demand services. The company’s growth has been driven by a combination of factors, including technological advances, consumer behaviour, and the demand for streaming video…..

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Related Case Solutions:

LOOK FOR A FREE CASE STUDY SOLUTION

Don't have an account? Sign up now

Already have an account login, get 10% off on your next order.

Subscribe now to get your discount coupon *Only correct email will be accepted

(Approximately ~ 0.0 Page)

Total Price

Thank you for your email subscription. Check your email to get Coupon Code.

Netflix International Expansion Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Netflix International Expansion Case Solution

The Netflix International Expansion case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Netflix International Expansion case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Netflix International Expansion case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Netflix International Expansion case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Netflix International Expansion Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Netflix International Expansion is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Netflix International Expansion HBR Case Study

The objective of the case should be focused on. This is doing the Netflix International Expansion Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Netflix International Expansion

An important tool that helps in addressing the central issue of the case and coming up with Netflix International Expansion HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Netflix International Expansion.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Netflix International Expansion Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Netflix International Expansion

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Netflix International Expansion operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Netflix International Expansion

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Netflix International Expansion case solution.

VRIO Analysis of Netflix International Expansion

This is an analysis carried out to know about the internal strengths and capabilities of Netflix International Expansion. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Netflix International Expansion are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Netflix International Expansion

The Value chain analysis of Netflix International Expansion helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Netflix International Expansion to increase its competitive advantage.

BCG Matrix of Netflix International Expansion

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Netflix International Expansion BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Netflix International Expansion

Ansoff Matrix is an important strategic tool to come up with future strategies for Netflix International Expansion in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Netflix International Expansion

Netflix International Expansion needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Netflix International Expansion Blue Ocean Strategy

The strategies devised and included in the Netflix International Expansion case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Netflix International Expansion

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Netflix International Expansion looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Netflix International Expansion.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Netflix International Expansion Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Netflix International Expansion case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Netflix International Expansion Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Netflix International Expansion case answers should be written down in the Netflix International Expansion case memo, clearly identifying which part shows what. The Netflix International Expansion case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Netflix International Expansion HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Netflix International Expansion is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Netflix International Expansion Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Netflix International Expansion Harvard case is complete and properly answered.

Recommendations and Action Plan for Netflix International Expansion case analysis

For Netflix International Expansion, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Netflix International Expansion should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Netflix International Expansion should enhance the value creating activities within its value chain.
• Netflix International Expansion should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

Baron, E. (2015). How They Teach the Case Method At Harvard Business School. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/

Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

Free Management E-Books. (2013a). PESTLE Analysis. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), 510-531.

Hill, C., & Jones, G. (2010). Strategic Management Theory: An Integrated Approach, Ninth Ed. Mason, OH: South-Western, Cengage Learning.

Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IIBMS. (2015). 7 Effective Steps to Solve Case Study. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kulkarni, N. (2018). 8 Tips to Help You Prepare for the Case Method. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method

Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis? Strategic Change, 7(2), 101-109.

Porter, M. E. (2001). The value chain and competitive advantage. Understanding Business Processes, 50-66.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance (Vol. 2). New York: Free Press.

Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Rauch, P. (2007). SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. European Journal of Forest Research, 126(3), 413-420.

Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here .

9416 Students can’t be wrong

PhD Experts

Richard Sme

To write a Research Paper on Entrepreneurship was really an impossible task. How thoughtful of you because you did it without a fault and I don’t know how to say thanks to you.

Latasha Roy

My teacher was never satisfied with the assignments that were written by me. Thank you for changing the sullen situations because he got pleased today.

I'm thankful for this service as per the reason that it is very professional in its course of action to students.

Irene Flippo

These guys really helped me so much because they wrote my 70% dissertation with very reasonable cost. Actually, I wrote the assignment and sent it to them for proofreading and editing. The writer was an honest man and did his best to satisfy me. Thank you for letting me get a splendid CGPA.

Calculate the Price

(approx ~ 0.0 page), total price $0, next articles.

• Spotify Case Analysis
• Seaworld: Are Animal Shows Sustainable After Blackfish? Case Analysis
• Live From The Met: Opera In The 21st Century (A) Case Analysis
• Live From The Met: Opera In The 21st Century (B) Case Analysis
• WetlandPOOLS: Wetlands And Blue Oceans Case Analysis
• Weiner Staatsoper (B): Streaming From The Vienna Opera House Case Analysis
• YG Entertainment: Inside The Korean Pop Music Factory (A) Case Analysis
• Lima Museum Of Art (MALI): Give And You Shall Receive, Spanish Version Case Analysis
• Wildfire Entertainment: Organizational Structure Archetypes Case Analysis
• Tatev Revival Project Case Analysis

Previous Articles

• Billionaire's Curse: Gun Based Succession Planning For A Bangkok Market Case Analysis
• Valley Carriers (A): Establishing Status In A Family Business Case Analysis
• Valley Carriers (C): Restructuring The Governance Of The Family Firm Case Analysis
• Born Global: Timeless Herbal Care Prepares To Supply Medical Marijuana To Canadians Case Analysis
• Valley Carriers (B): Working On Versus Working In The Business Case Analysis
• Khao Yai Winery: An Economic Perspective Case Analysis
• Indigo Agriculture Case Analysis
• Issa Baluch And The African Agribusiness Knowledge And Innovation Leadership Initiative (AKILI) Case Analysis
• Groundnut Value Chain At Anantapur: Growing Through Co Operatives Case Analysis
• FieldFresh Foods: Frozen Vegetables Business Case Analysis

Be a great writer or hire a greater one!

Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.

Our Guarantees

Zero plagiarism, best quality, qualified writers, absolute privacy, timely delivery.

Interesting Fact

Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!

Allow Our Skilled Essay Writers to Proficiently Finish Your Paper.

We are here to help. Chat with us on WhatsApp for any queries.

Customer Representative