Also, Netflix has been giving away student scholarships and other charitable aid to financially underserved students, which has created a positive corporate responsibility image in the eyes of society. The company prides itself on listening to its clients and complying with the highest standards of morality and ethics (Jacobsmeyer, 2017). The social aspect of the external environment plays the most important role in shaping Netflix as a successful business. Also, costs on domestic streaming, US-targeted marketing, and other expenses represent some challenges that require control. It was expected that the company would adapt to the continuously changing exchange rates that can adversely affect revenues. Also, Netflix could not enter the Chinese market, which is the most populated, because of the issue of permission from the government (Riley, 2016). The analysis of Netflix from the perspective of its macro-environment is expected to show how the company approached its opportunities in the industry given the impact of outside factors.įrom the political perspective, Netflix had to consider content restrictions in such geographical locations as Syria, North Korea, and Crimea, which represented a challenge of a potential market remaining unserved (Maan & Tharakan, 2016). ![]() ![]() The analysis using these tools can provide an explanation of why Netflix chose the route of online media instead of offering content through physical vehicles (Jacobsmeyer, 2017). When considering the internal and external forces that influenced the strategic decision of Netflix, the assessment of the internal and external can provide a comprehensive look at the situation. The current case will discuss the environment that led Netflix to make a deliberate strategic shift, the implemented changes, lessons learned, and provide the analysis of the company’s advantage that has not been replicated yet. Apart from this, the company is increasing its international coverage, tapping into territories where English can be used as a second language thus attracting a new audience of clients. This shows that Netflix conducts regular assessments of the public’s interests and brings out shows that were to capture a wide audience. Besides, the company saw the society’s interest in documentaries, which led to the release of such globally popular titles as Making a Murderer, The Keepers, Amanda Knox, The Staircase, and others. Netflix has recognized that most of the content is viewed through the Internet, which presented a unique outlook on the future of the company. Also, as the company invests in original shows and movies that can only be available on its platform, it shrinks the content library, which leads to limited choices. On the other hand, the suppliers of content to Netflix have become the company’s competitors. Through expanding the paid membership for its services, the company can attract new customers to the business and ensure significant growth (Ovide, 2019). Netflix is the leading streaming network in the world, available in over one hundred and ninety countries, which represents its key strength. ![]() However, the decision to transform the company into a streaming service became the landmark that changed Netflix completely and led it to global success. ![]() In 2000, the company was offered a deal from Blockbuster that proposed Netflix to handle the online business the offer was declined (Satell, 2014). During finding its strategic orientation, Netflix also introduced a monthly subscription concept, which did not bring much success. It was founded in 1997 by Reed Hastings and Marc Randolph as a home video and rental company that focused on the distribution of DVDs (Castillo, 2017). is a US-based provider of streaming services around the world.
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