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Week 8 Assignment 3
Joanna Nasser
Strayer University
BUS499 Business Administration Capstone
Dr. Keller
02/22/2019
Week 8 Assignment 3
Netflix uses a combination of business strategies and corporate
strategies that are critical in providing the success that the
organization has enjoyed over the last couple of years. Business
level strategies and corporate level strategies are closely related
in function in teat they are geared at ensuring that the
organization achieves its objectives. However, business strategy
entails boosting and widening the customer base while the
corporate level strategies entail the identification of products
and services as well as effective measures to improve the
products so as to meet the clients demand. Netflix has employed
an effective business level strategy as well as corporate level
strategy that will be discussed into depth in this paper.
Competition is also essential in business activities and effective
strategies must be put in place to alleviate the levels of
competition.
Business-Level Strategies
Business level strategies entails the choices that an organization
has to make to place the organization strategically to meet the
competition that is offered by competitors in the market.
Business level strategies can therefore be viewed as the
strategies that the organization must put in place to enable it to
compete fairly in the market or even provide it with additional
competitive advantage over the other organizations that offer
the same products or close substitutes to the products the
company offers (Hitt, Ireland, & Hoskisson, 2013). There are
several strategies that can be used for business level strategies.
The strategies always revolve around differentiation of the
product and cost leadership techniques. This strategies can be
used together to provide competitive advantage or each strategy
may be employed on its own to provide the desired market
status.
Netflix uses a combination of differentiation strategies and cost
leadership to place them strategically to beat competition. The
business level strategy employed by Netflix is the integrated
cost leadership/ differentiation. The integrated cost leadership/
differentiation is a strategy that organizations can use to ensure
that the desire of the customers to acquire highly differentiated
products at low prices (Hoffman, 2008). The strategy is aimed
at efficiently, to imply with minimized costs, produce highly
differentiated products so as to provide customer satisfaction.
Netflix has been able to use the resources and technological
advancements within its reach to ensure that it enjoys a market
advantage over its competitors. On top of minimizing the cost
of production that the organization incurs in the process of
production, the company reduces the prices that clients have to
pay to access the services and products. This strategy helps the
company to attract clients in the movie and theatre products to
purchase from the company since it offers competitive prices
that sometimes are slightly lower than the other companies.
Additionally, Netflix has ventured in the sale of only what is
highly demanded in the market as such ensuring that the
company offers highly differentiated products. To achieve this
strategies, there are some tools that the company has used
effectively. One of the tools is information technology structure
and infrastructure. The company ensures that its services and
products are highly advertised through social media and other
online platforms. Additionally, the company runs on the website
as well as Netflix application that provides the option to
purchase the company’s product with ease (Hoffman, 2008).
The website and application are widely available in the market
to provide the company with additional market coverage and
product differentiation.
The business level strategy that the company uses us highly
effective in achieving its objectives and functions. The movie
and theatre is highly competitive and to maintain relevance in
the market, it is important to ensure that the business level
strategies are well implemented to provide the company with
additional market advantage. Netflix has been able to use this
strategies effectively. Integrated cost leadership/ differentiation
provides the company with the opportunity to conduct market
segmentation by critically conducting market analysis the
company can identify the need of various groups of customers
hence ensuring that each market group is satisfied and attended
to at their own specific levels.
Corporate-Level Strategies
A company employs the corporate level strategy to help it to
become diversified and hence create and add value to the
products that it deals with. Corporate level strategies are those
strategies that a company implements during the choice of the
products and services that the company should deal with to gain
a competitive advantage over other companies dealing with the
same or similar products in the market (Hitt, Ireland, &
Hoskisson, 2013).
Netflix employs corporate level strategies that are value
creating diversification. This are strategies that entail creating
value to the resources and abilities of the company. Netflix uses
economies of scope effectively to implement the strategies that
give it a competitive advantage over the other companies.
Economics of scope are those practices that a company may use
to cut on costs while minimizing on the value of the products.
Netflix adds value tot eh products it deals with using four major
tools. The tools are technology, delivery, customization,
geographical mobility and reputation. First, the organization
uses the internet to deliver its products. By use of the wide
reach the internet has globally, the company positions itself
strategically to meet the demand of the customers hence boost
the superiority of its products in the market. The company
employs the use of high level functionality hence increasing the
value of the consumers. Second the delivery system and tome
for the DVD that are rented out is minimal. Customers are able
to receive DVDs once they hire them within one business day.
This delivery time boosts customer experience hence boosting
the position of the company in the market by helping the
company to beat existing and future competition since it
becomes the customers company of preference in the business
of hiring and leasing out of DVDs and other theatre products.
Netflix offers products that are highly differentiates and provide
customization services. This function is achieved through the
provision of movies that are attractive to the market. Through
this factors the company has been able to employ a value
creating diversification strategy.
The strategy is proving to be highly effective since the products
that the company deals with are highly demanded. Due to the
nature of the products and services and the value that the
company adds to the customers. The company has built itself to
be the biggest company in the business of renting out DVDs.
However, the company should adjust the strategy to ensure that
it builds a good rapport with the producer of the DVDs that are
rented out.
Competitive Environment
Competitors form a critical aspect to the existence of any
company in the market. Competitors come in two main ways.
One is the direct competitors who offer products that are similar
to those produced by the company in study or indirect
competitors who offer products that may be used as close
substitutes to those that a company deals with hence cutting
down on the market superiority of the company. Porters five
forces (appendix A) are used to analyze the basics of the
competitive environment however, deeper analysis to the market
can be conducted by studying other variables such as market
commonality, resource similarity, competitive behavior and
competitive dynamics. The biggest competitor to Netflix
currently is Amaxon.com.
Amazon is an online retail company that is gaining much
popularity in recent years. The company ventures in e-
commerce services in several countries hence attracting
customers through a wide range of services and boosting the
market share of the company. According to a research published
in the company’s website, more than 73% of the American
citizens who are attracted to the online video subscription
industry prefer to use Netflix or Amazon. The report indicates
the status of the two companies in the market as well as the
level the two companies is posing to each other. Several
variables can be used to conduct the competitive analysis.
i. Market commonality
Competition brings about the aspect of sharing market between
the competitors. Market commonality entails the number of
markets that the competitors have ventured jointly and the
degree of individuals market to supporting each other (Hitt,
Ireland, & Hoskisson, 2013).
Both Amazon and Netflix are online organizations which rely
on the use of the internet to reach the market. As such, the
market comprising of online users is shared within the two
companies (Mac, 2016). However, although Amazon has been in
the online industry for longer and is more popular than Netflix,
amazon has recently started venturing into the subscription
video services giving Netflix a bigger influence in the market
segments. Amazon beats Netflix in reaching the market with the
hard copy DVDs through its stores which are strategically
placed in various countries.
ii. Resource similarity
The resource similarity entails the extent to which competing
organizations resources are comparable. Amazon and Netflix
rely on the internet as the biggest resource to supply the
products. While Amazon may enjoy bigger and more advanced
resources such as a more developed online platform as well as
human resource, Netflix offers cost leadership that puts it in a
position to compete with Amazon (Wiles, 2004). The companies
use similar resources but Amazon is advantaged due to its well-
developed infrastructure.
iii. Competitive rivalry
Netflix remains to be the biggest selling company in the DVD
renting and Subscription video services. However, Amazon and
other smaller competitors are venturing the market. The market
is open to new entrants putting the position of Netflix intact.
Netflix can be able to survive the competition and remain
relevant by conducting competitor analysis and understanding
the abilities of the competitors. Additionally, the strategies
implemented should be used to drive Netflix into beating any
kind of competition.
iv. Competitive dynamics
This variable entails studying the rate at which competition is
growing within the business venture and industry. The DVD
renting and subscription video services sector is attracting
competition from other companies other than Amazon as well.
However, Amazon is viewing the industry as a potential
advancements in the sector hence the competition is rapidly
growing
Due to specialization in the sector, Netflix still enjoys a more
superior market share as compared to the other competing
companies such as Amazon. The strategies have been
implemented to a great effect in providing the company with
cover from competition. However, the company should improve
on its strategies to ensure that the services provided are more
customer-endeared to help it remain relevant in the market.
Market Cycles
Market cycles entail trend that are new and emerging in the
market or any business environment. There are two main types
of market cycles. Slow-cycle markets are those where firms are
shielded from competitive advantage or the sector is protected
by difficulties in entrants of new companies (Hitt, Ireland, &
Hoskisson, 2013). Amazon is a company that is centered on
minimizing costs of production hence achieving maximum
profitability. If the market was a slow-cycle market, Amazon
would not be a significant competitive factor. This is because
other competitors are willing to put more effort in meeting the
market standards so as to match Netflix. Amazon on the other
hand is well established in other sectors of ecommerce therefore
it would be wary of incurring high costs to venture into the
market.
Fast cycle markets on the other hand are those markets where a
company’s competitive advantage is not protected and is
therefore vulnerable to imitation (Hitt, Ireland, & Hoskisson,
2013). Amazon has bigger infrastructure and has vast resources
to use. If the market was a fast-cycle market, Amazon would
remain to be the biggest threat in the market to Netflix since
they placed in a better position to compete with Netflix.
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage
Learning.
Hoffman, H. (2008, Sep 30). Netflix Adds 2,500 Streaming
Movies From Starz. Retrieved from CNET.com. :
http://news.cnet.com/8301-13515_3-10055367-26.html
Mac, R. (2016, May 4). Forget AWS, Amazon has another
billion-dollar business on its hands. Retrieved from Forbes:
https://www.forbes.com/sites/ryanmac/2016/05/04/amazon-
business-1-billion-sales/#13deace71f8f.
Wiles, G. (2004 , August 19). Amazon.com to Acquire China’s
Joyo.com for $75 Million. Retrieved from Bloomberg:
http://bloom.bg/13SHPx5.
Appendices
Appendix A: Porter’s five forces that is used to analyze
competition in het market
Netflix Analysis
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Running head: Netflix Analysis
Week 6 Assignment 2
Joanna Nasser
Strayer University
BUS499 Business Administration Capstone
Dr Keller
Strengths
Netflix maintains a strong brand portfolio. The brand stands on
a firm ground making it well known to everyone who is using
the brand and even new potential clients. It has become part of
the modern society and its market share is increasing owing to
the brand. The second strength is mergers and acquisitions with
firms along its operation. Netflix has successfully managed to
integrate with technology companies in the last couple of years.
That aspect is advantages since it has assisted in streamlining
its operations and delivery of its content. For instance, it has
acquired Millar world, a well-known comic book company. By
doing so, it made a stride towards the comic book fields where
other companies have made huge profits. Such acquisition is
strength for Netflix. The next strength is investment in the
sponsoring its exclusive shows. Before it started its original
production, Netflix was distributing contents from other
production houses. That has since changed with famous shows
such as House of Cards. That serves as strength since it has
eliminated reliance on content from outside by having its own
shows and movies. This aspect denotes its increasing expansion.
Huge over client base is strength for Netflix. It has over the
years accumulated loyal clients. That has occurred owing to its
customer satisfaction which makes it preferred by many. With
its content being served across 190 countries and over 100
subscribers, Netflix enjoys the support from such clients leading
its capability to trump over competitors. Such a client base
assures consumers of its content which translates to revenues
(Mazzolini, 2016).
Weaknesses
Among the weaknesses of Netflix is lack of rights related to the
original content. As stated earlier, Netflix distributes the
contents from other production houses. Since it lacks original
rights to production from other houses, such shows on expiry of
rights can be taken to its competitors thus taking its subscribers
with it. This thus strengthens the competitor at the expense of
Netflix. Secondly, Netflix has been cited as lagging behind
when it comes to environmental initiative. Bearing in mind
about the call for attention to environment, there is a fair
chance its losing ground owing to environment concerns. On the
other hand, its competitors have paid attention with the likes of
Amazon using renewable energy. This thus can affect Netflix
weakening its customer base. Thirdly, even though Netflix is
establishing itself with availability of its in-house production,
concerns regarding cost of its original content seem to be
affecting it. Such costs may be eating up its profit share that
could plough-back to other ventures (Mazzolini, 2016).
Fourthly, Netflix was known and loved for its pocket friendly
prices. However, the relatively marginal increase in price does
not seem to be auguring well with its consumers. To some
extent, there was even a stumble in its stock price. Consumers
seem to be worried if it’s heading towards the rise in price
patterns.
Tangible and intangible resources, capabilities and core
competencies
Netflix owns both tangible and intangible resources. Its tangible
resources/assets including IT related assets, its furniture and
fixtures, building, leasehold improvements, DVD operations
equipment and corporate aircraft. In terms of intangible
resources, Netflix intangible resources include intellectual
property arising from rights to distribute content and its original
content. There is also goodwill accumulating owing to its
continued operation (Netflix Inc., 2018).
Netflix core competencies and capabilities can be viewed
through the lens of its tangible and intangible resources.
Technology has been on the fore front in spearheading its
operations. Netflix has banked on Amazon Web Services cloud
service for provision of its services. It has stored terabytes of
data in the cloud enabling its provision on demand to its client.
As a result, effective provision of its data has been made
possible ensuring that the company is still the leader in
providing the streaming service. Secondly, it has worked on its
analytics to collect enough data regarding its clients and as a
result, be able to provide personalized content to its clients.
With personalized mechanism, the company is able to offer
recommendation to its client’s thus suiting their preferences. It
has in additionally worked with Facebook and gathered
information on preferences thus refining its recommendations
(Dans, 2018). This aspect has thus made it possible to provide a
good customer experience.
Segments of General environment that influence corporation
The two segments of general environment that influence Netflix
are technology and legal segment. Technology is vital part of
Netflix. It dependent on technology means it has to keep
improving technology in order to continue being on the market
frontlines (Dans, 2018). For instance, increased advancement in
compression technique will work to assist in quality of
streaming with less data being used. The company thus has to
keep improving on the compression algorithm to achieve that.
Besides that, there is need to focus on convenient payment as
well as delivery process of the content. This again relies on
aspects of technology for effective service. The next segment is
the legal segment. Netflix deals with intellectual property as its
products. As such, there is concern for piracy that may affect its
distribution. If the content it distributes happens to be pirated,
it functions as detriment to the company. There is also the
aspect of geo-blocks where its contents it not aired in some
regions. Case in point is in North Korea owing to U.S.
government restrictions. Such aspect thus denies it market to
regions that might substantially benefit from its content. Geo-
blocks thus influence Netflix availability.
Forces of Competition
The two forces of competition that are significant to Netflix are
level of rivalry and level of substitution. The threat of rivalry
happens to be high for Netflix owing to the possibility of being
substituted to competitors such as iFlix, Hulu, Amazon etc.
Moreover, pay TV stations provide similar content in its
programs (Mazzolini, 2016). Netflix has handled this by
ensuring that it has partnered with local companies to promote
its content. For instance, in Ireland, Vodafone TVs remote have
a Netflix button. Such aspect has made it possible for Netflix to
reach more market thus increasing its market share and edging
out competition (Slattery, 2016). It has in addition worked
towards having regionally produced content to enhance
marketability in a given region. For example, it has worked to
ensure Bollywood related content have increased in its library
upon entering the market (Mazzolini, 2016). This has enhanced
its competitiveness against its rivals. As far as substitution is
concerned, it has worked to enhance their customer experience
in order to eliminate possible substitution. For example, its
subscriptions are ad free in comparison to the likes of Hulu
which has a basic package with ads. Such a move to have ad
free subscriptions eliminates annoyance which may induce
clients to substitute it. Moreover, it has worked to enhance
personalization of its content to suit customer preferences. As a
result, this creates the satisfaction of the customers eliminating
any likelihood of substitution.
Competition in Future
In the near future, competition from the rivals can be addressed
by ensuring that it continues to build on product differentiation.
That will work to ensure that its clients are retained and more
potential clients subscribe. For example, assuming it comes up
with a compression that uses less data, it works as a plus for
persons who have limited data plans. Such clients will be able
to access more shows thus opt for Netflix. In terms of threat of
substitutes, it can go an extra mile in terms of expansion and
introduce sport’s coverage (Sweney, 2018). Sports especially
large sporting events and leagues can attract large number of
viewers. Such a move can effectively work to promote its
competitiveness and eliminate possibility of substitution. That
happens as sport lovers will always be inclined to remain in
Netflix so as not to lose access to sports.
Greatest external threat
The greatest external threat to Netflix is none other than illegal
sharing and downloads. Netflix is all about streaming the
content mainly. The availability of such content through illegal
shares eliminates its relevance (Sulleyman, 2017). Moreover,
availability of peer to peer sharing is another major threat. For
example, a show/movie available in Netflix might be available
for free on illegal download sites. With just internet, a person
might decide to access the show via downloading it and
watching. At the same time, it’s possible to access in peer to
peer sharing sites where no one can be legally blamed. Such
shares and downloads threaten the revenue share it owns. To
handle the threat, Netflix should continue building on its
vigilance programs on the internet. Some activities include
scanning the internet to realize any existence of any of its
contents in unauthorized sites. If such content is available, it
should send requests to have such contents brought down.
Opportunity
It’s not in doubt how much Netflix has grown over the years.
It’s leading in the video-streaming industry. To build further on
that merit, it should continue to work on cellular mobile data
plans which will ensure that it builds on the existing market
(Scott, 2017). Through working out data plans with cellular
providers, users who access on mobile devices such as
smartphones and tablets will be able to access Netflix content
from anywhere. That will work when they are away from Wi-Fi
service. This will in turn boost their subscription thus
generating more revenue.
References
Netflix Inc. (2018). 2017 Annual Report. Retrieved from
https://d18rn0p25nwr6d.cloudfront.net/CIK-
0001065280/9a58a789-685b-42c1-ac3e-
cd5b546e2250.pdfSlattery, L. (2016, Feb 19). Laura Slattery:
One True Telly Remote to Rule them All? We Are Still Waiting.
The Irish Times. Retrieved from
https://www.irishtimes.com/business/media-and-
marketing/laura-slattery-one-true-telly-remote-to-rule-them-all-
we-re-still-waiting-1.2539879
Scott, M. (2017, Feb 26). In Global Expansion, Netflix Makes
Friends with Carriers. The New York Times. Retrieved on 29th
Jan 2019 from
https://www.nytimes.com/2017/02/26/technology/netflix-
streaming-expansion-mwc.html
Sulleyman, A. (2017, Nov.30th).Netflix Must Cut Prices by
More Than Half to Compete with Pirates, Study Finds.
Independent. Retrieved on 29th Jan 2019 from
https://www.independent.co.uk/life-style/gadgets-and-
tech/news/netflix-prices-latest-new-cost-compete-pirate-
bittorent-tv-shows-films-torrents-study-a8085196.html
Dans, E. (2018, Jul 11).Why everybody wants to be Like
Netflix. Forbes. Retrieved on 29th Jan 2019 from
https://www.forbes.com/sites/enriquedans/2018/07/11/why-
everybody-wants-to-be-like-netflix/#3f243cb47fd8
Sweney, M. (2018, Jul 21st).Netflix has Revolutionized
Television. But is its Crown Starting to Slip? The Guardian.
Retrieved on 29th Jan 2019 from
https://www.theguardian.com/media/2018/jul/21/netflix-crown-
beginning-to-slip-subscriber-numbers
Mazzolini, P. (2016). Netflix: Financial Position Analysis and
Evolution in the Market for Online Streaming Services
(Doctoral Dissertation, LUISS University, Rome, Italy).
Retrieved from
https://tesi.luiss.it/18543/1/174501_MAZZOLINI_PIERFRANC
ESCO.pdf
Running head: WEEK 3 ASSIGNMENT 1
1
WEEK 3 ASSIGMENT 1
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Week 3 Assignment 1
Joanna Nasser
Strayer University
BUS499 Business Administration Capstone
Dr Keller
Netflix
Pay TV is one of the industries that were significantly affected
by the internet revolution. The 21st Century television industry
is gradually departing from the old models that one needs a set-
top box and television cable connection, antennae or satellite.
Nascent pay television companies are relying on new television
models that have WiFi and Ethernet connection capabilities.
Netflix is a leader in the internet television industry with
millions of subscribers all over the globe. Netflix offers its
subscriber Bluer Ray and DVD rentals as well as online
streaming of movies and television series. The titular selling
points for internet television is a la carte programming that
allows viewers to pick the content they would wish to watch and
absence of television advertisements- that viewers are growing
increasingly of. Netflix and other streaming services solely rely
on viewer subscription fees for revenue rather than ads. The
strategies employed by Netflix enabled the firm to stave off
competition from other pay-TV companies since the competitors
had just copied and pasted the traditional model of television on
online platforms. Since it had minimal need for infrastructural
investments and global reach, Netflix can offer low subscription
fees and as a result, maintains a grip on the market.
Globalisation
The internet is the foremost agent of globalisation. It is
regarded as a terus nullius (no man's land) in which territorial
boundaries are diminished. Online business has no geographical
boundaries while regulatory barriers of entry are severely
damaged. The internet offers Netflix and other online television
companies an opportunity to reach global audiences at lower
costs. Online firms are no longer preoccupied with local
audiences; they have shifted their attention to the global market
that is comprised of billions of audiences.
Consequently, they can take advantage of higher economies of
scale that would enable them to offer discounted subscription
fees and still make decent returns on investment. The fact that
the company is of American origin gives it an advantageous
position as most of the content would be in English, a culturally
superior language that is widely spoken around the world (in
virtually all the continents). Netflix also has programs that are
available in more than one languages. Money Heist, originally a
Spanish language program, is available in English and Spanish
languages. The inadequacy of the television program has turned
millennial to the internet in search of programs more suited for
their entertainment needs. These needs are quality programs,
on-demand programming and low subscription costs
(Cunningham & Craig, 2016). It is the ability to reach global
audiences and make content that corresponds with their
language, needs and global culture that enable these firms to
thrive.
Technology
Online television firms depend on a motley of technologies for
survival. Availability of fast internet connection is the most
basic requirement for the firms' business model. The advent of
connection of fibre optic cable, even in less developed nations,
enable audiences to stream content online. Due to vast
geographical distances between the online television firms and
their audiences, there is a need for e-commerce platforms such
as Visa, Mastercard, Paypal and mobile money transfers. Use of
emergent data mining technologies to predict what types of
content that audiences would prefer. Netflix used Cinewatch, a
predictive algorithm, in producing shows that became a success
(Kovacs, 2015). The combination of the technologies as
mentioned above enables these firms to operate efficiently
across the globe.
Industrial Based Model
The industrial based model examines firms' competitive edge
based on the threats. Porters' five threats are: new entrants in
the industry, rivals, substitute products, powerful buyers and
powerful suppliers. The severity of the threat of new entrants is
highly dependent on barriers to entry such as regulation and the
requirement for expensive capital investments (Olsen & Safdar,
2014). Television companies that deliver content via streaming
are not required to invest in national infrastructure or work with
partners to penetrate the international market. Thus, the
requisite capital for such ventures is lower than for traditional
television networks. Netflix's approach to television has been
and will continue to be, emulated by new entrants who pose
threats to the firm's market share. Threats from rivals are
perhaps the most severe. Netflix faces threats from HBO and
Showmax, which hold considerable market share in the industry.
The rival firms engage in price wars and aggressive
advertisement campaigns in social media. Substitute products
such as pay television are also threats to Netflix. Product
differentiation regarding quality would give Netflix an edge
over their rivals. The inclusion of local programs and movies in
international markets and lower subscription fees have enabled
Showmax to endear itself to viewers. Pay television is not
extinct, in fact, 43% of Americans still subscribe to pay TV for
live events such as sports (Kovacs, 2015). To maximise on their
earnings, they should consider adding live sports in their menu.
Powerful buyers are a threat to any industry as they impact on a
firm's success or failure. In Netflix's case, individual
subscribers are influential and have to be appeased by the
quality of the content, price and convenience. Netflix does not
own most of the content in their network. They rely on show
and movies producers who are at times unwilling to release
some of the current content that would keep their audience in
their network. The workaround the problem is to produce
content. House of Cards, Orange is the New Black, Money Heist
and Bird Box are some of the content produced by Netflix.
Production of content is a capital intensive venture but the
dividends- retaining subscriber base- is worth the money.
Resource-Based Model
The resource-based view assumes heterogeneity of firms'
resource and immobility of the said resources to other firms
(Olsen & Safdar, 2014). In the resource-based model, firms'
products should be valuable, rare, inimitable and non-
substitutable. Online television companies face a risk of having
uniform products due to non-exclusive licensing agreements
with producers. Non-exclusive licenses are cheaper as the
producers can sell rights to several firms. Uniform products
would expose firms to price wars which are detrimental to their
bottom line in the long run coupled with the fact that the
network producers still have the rights to make the programs
available to their audiences in their networks. Thus, the
importance of firms in the industry to produce their content that
would be exclusively available in their networks. Netflix has
produced award-winning shows, such as House of Cards and
Orange is the New Black, which further endeared the firm to
global audiences. These programs (products) perfectly fit the
criteria for the resource-based model; rare because they are
exclusive to the firm, inimitable, non-substitutable and valuable
because audiences love the shows. However, competition from
rivals' content such as HBO's Game of Thrones is still a matter
of concern. The show is arguably one of the most favourite
television contents of the decade and surpasses all Netflix
shows regarding global viewership. Netflix maximises its
returns on investment and increasing efficiency by creating
content that is geared towards satisfying and retaining the
customer.
Vision
Netflix's vision is to provide a good experience for customers
who stream content online and becoming the best company in
the field of online television. The firm also promises to create
global markets for content creators. This vision is what guides
the firm in ensuring that they stay ahead of the curve regarding
technical quality and content quality. The actions, governed by
the company's vision, helps in promoting the brand globally.
Mission
Netflix's mission is to improve customer experience to grow
their global subscription base with a view of developing the
interface of devices (television, computer and handheld
devices). Netflix's contents are compatible with all internet-
enabled devices. This increases convenience and enables the
company to reach more subscribers regardless of the devices
used to access the content.
Stakeholders
Netflix's stakeholders comprise of: the shareholders, the
employees, the suppliers (television networks and independent
producer who license the firm to air their content) and global
subscribers. Netflix's employees in production, customer service
and marketing departments enable the firm to succeed by
working in sync by ensuring that each department works
towards the realisation of the firm's goals. The ICT department
ensures that the subscriber has an easy time online by ensuring
that the various technological aspects are functional. The
production team provides that the programs are of high quality.
Customer service staff ensure that subscriber complaints and
concerns are addressed while the marketing de0partment
formulates strategies for gaining and retention of customers are
sound. The shareholders make a fund for operations available
and set policies.
References
Cunningham, S. & Craig, D. (2016). Online Entertainment: A
New Wave of Media Globalization? International Journal of
Communication 10(2016), 5409–5425.
Kovacs, G. (2015). An Analysis of Strategies by Netflix in the
Television Market. Undergraduate thesis, Aarhus University,
Department of Business Administration.
Olsen, T. & Safdar, I. (2014). Effects of Industrial Organization
Perspective and Resource-Based View on Firm Performance:
The Moderating Role of Industry Characteristics. Master’s
Thesis, Buskerud and Vestfold University College.
How to Use This Template
Each slide needed in your submission is provided in this
template.
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slide)
Replace the “blue” font on each slide with your presentation
content
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Do Not type every word you plan to say on the slide.
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1
BUS499 Capstone
Assignment 4
Insert Student’s Name Here
Insert what you would said to introduce yourself to your
executive audience and tell them what you are going to cover in
your presentation
Do Not type every word you plan to say on the slide. Use bullet
points only.
Everything you would say if you were giving a live presentation
should be provided in text form in the speaker notes section of
each slide.
2
Firm’s Name
Impacts on
Impact of Company’s Mission on Success
insert a bullet or two describing the mission’s impact to overall
competitive success
Impact of Company’s Vision on Success
insert a bullet or two describing the vision’s impact to overall
competitive success
Impact of Stakeholders on Success
insert a bullet or two describing the impact of stakeholders to
overall competitive success
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly determine the impact of the company’s
mission, vision, and primary stakeholders on its overall success
as a competitive employer in the industry.
3
SWOT Analysis Strategy
Strengths and Opportunities
Insert a bullet describing the strategy to capitalize on strengths
and opportunities
Insert another bullet describing the strategy to capitalize on
strengths and opportunities
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a strategy for the company to
capitalize on its strengths and opportunities.
4
SWOT Analysis Strategy
Weaknesses and Threats
Insert a bullet describing the strategy to minimize weaknesses
and threats
Insert another bullet describing the strategy to minimize
weaknesses and threats
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a strategy for the company to
minimize its weaknesses and threats.
5
Competitiveness Strategy
Competitiveness
1st bullet point of levels and types of strategies to maximize
competitiveness
2nd bullet point of levels and types of strategies to maximize
competitiveness
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly discuss the various levels and types of
strategies the firm may use to maximize its competitiveness.
6
Profitability Strategy
Profitability
1st bullet point of levels and types of strategies to maximize
profitability
2nd bullet point of levels and types of strategies to maximize
profitability
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly discuss the various levels and types of
strategies the firm may use to maximize its profitability.
7
Communications Plan
Competitiveness Strategies
1st bullet point on the plan to communicate the competitiveness
strategies to stakeholders
2nd bullet point on the plan to communicate the competitiveness
strategies to stakeholders
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a communications plan the
company could use to make the strategies you recommended on
the previous slide known to all stakeholders.
8
Communications Plan
Profitability Strategies
1st bullet point on the plan to communicate the profitability
strategies to stakeholders
2nd bullet point on the plan to communicate the profitability
strategies to stakeholders
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a communications plan the
company could use to make the strategies you recommended
known to all stakeholders.
9
Corporate Social Responsibility
Responsible (ethical) corporate citizen
1st bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
2nd bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
Impact of efforts on company’s bottom line
1st bullet point on the impact the efforts have on the company’s
bottom line – specific example
2nd bullet point on the impact the efforts have on the
company’s bottom line – specific example
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly assess efforts by this corporation to be a
responsible (ethical) corporate citizen and thoroughly determine
the impact these efforts (or lack thereof) have on the company's
bottom line. Provide specific examples to support your
response.
10
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage
Learning.
Insert second source
Insert third source
Insert any additional sources
You should use at least three (3) quality references, one of
which should be the course textbook. Wikipedia and similar
websites do not quality as academic resources.
11
ASSIGNMENT 4 INSIGHTS
1
ASSIGNMENT 4 INSIGHTS
2
Here are some notes/tips to help with Assignment 4. Also, be
sure you are using the Template and follow the steps on each
slide and in the Speakers' Notes. If you are unsure how to use
Speakers Notes, check out this video:
https://www.youtube.com/watch?v=hZoGMnGU1b8
TIP-Delete Slide 1 “How to Use This Template” Last.
Do NOT make audio or video clips for this assignment as
Blackboard cannot accept large files. Use only the slides and
speakers’ notes.
Slide #3 – Firms Name
This is the same Firm that you have been writing about in
Assignments 1, 2, and 3 (which is why we did want you to use
the same firm for each assignment).
You wrote about your firm’s Mission, Vision, and Stakeholders
in Assignment 1 so you should review that assignment for this
slide – yes, you can reuse what you wrote in Assignments 1-3.
And remember to review the comments in your graded paper for
insights…they are found in the rubric when you go into your
graded papers in Blackboard.
Slide #4 & #5 - SWOT
You wrote about a WSOT in Assignment 2 so you should review
that assignment for this slide – remember to review the
comments in your graded paper for insights.
Slide #6 & #7 - Competitive and Profit Strategy
Competitive: see chapter 5 - specifically page 148 and forward
AND chapter 6 page 164 and forward
Example: this would be from what you wrote in assignment 3 in
the Competitive Environments & Market Cycles environment
Profit: Chapter 5 page 175 forward
example - how does or how could your firm use Unrelated
Diversification/Assets/Diversification (page 178-163) to
improve financial resources inside and outside of the firm to
improve their profitability?
Also, review the Learn video lectures on these topics
You wrote about a Business-Level and Corporate-Level
strategies and the Competitive Environment/Market Cycles in
Assignment 3 so you should review that assignment for this
slide – remember to review the comments in your graded paper
for insights.
Slide #8 - Communication Plan Strategy
The strategy is based upon the previous slide - slide 6: In the
Speakers Notes: Outline a communications plan the company
could use to make the strategies you recommend above known
to all stakeholders.
As a consultant, if the board of directors approved your
recommendations on slide 6, how would you recommend the
company announce them to stakeholders. Well, who are the
stakeholders?
https://www.bdc.ca/en/articles-tools/entrepreneurial-
skills/become-better-communicator/pages/how-to-create-
communication-plan-to-promote-your-business.aspx
and
https://www.nfib.com/content/resources/marketing/how-to-
draft-a-small-business-communication-plan/
Then, would you host meetings, conference calls, email, a
combination of these, etc?
Slide #9 – Communication Plan
This is a personal item to write about/based on your research
over the past assignments, would you go to work for this Firm?
The Why/why-not needs to be provided from the following: In
the Speakers Notes: You will make recommendations to the
Board of Directors based upon your analysis and decision on
why the corporation remains or is not a good fit for you.
To help with this, consolidate all of the information studied in
the previous 10 weeks in the Learn, Discussions, and
Assignments. Apply that learning now – explain why you would
(or would not) want to continue working at this firm based on a
business case. Avoid opinion and feelings – you your business
learning from this course to make a business case for working
(or not working) there.
Remember, you are presenting to the Board of Directors who
need to hear from you as a business consultant.
Slide #10 - CSR Efforts and actions
Consider Chapter 10, page 313 and Chapter 12 page 377.
Also, what is your firm doing to give back to the local
community?
https://www.investopedia.com/terms/c/corp-social-
responsibility.asp

110Week 8 Assignment 3Joanna NasserStrayer Universit.docx

  • 1.
    1 10 Week 8 Assignment3 Joanna Nasser Strayer University BUS499 Business Administration Capstone Dr. Keller 02/22/2019 Week 8 Assignment 3 Netflix uses a combination of business strategies and corporate strategies that are critical in providing the success that the organization has enjoyed over the last couple of years. Business level strategies and corporate level strategies are closely related in function in teat they are geared at ensuring that the organization achieves its objectives. However, business strategy entails boosting and widening the customer base while the corporate level strategies entail the identification of products and services as well as effective measures to improve the products so as to meet the clients demand. Netflix has employed an effective business level strategy as well as corporate level strategy that will be discussed into depth in this paper. Competition is also essential in business activities and effective strategies must be put in place to alleviate the levels of competition. Business-Level Strategies Business level strategies entails the choices that an organization has to make to place the organization strategically to meet the competition that is offered by competitors in the market. Business level strategies can therefore be viewed as the
  • 2.
    strategies that theorganization must put in place to enable it to compete fairly in the market or even provide it with additional competitive advantage over the other organizations that offer the same products or close substitutes to the products the company offers (Hitt, Ireland, & Hoskisson, 2013). There are several strategies that can be used for business level strategies. The strategies always revolve around differentiation of the product and cost leadership techniques. This strategies can be used together to provide competitive advantage or each strategy may be employed on its own to provide the desired market status. Netflix uses a combination of differentiation strategies and cost leadership to place them strategically to beat competition. The business level strategy employed by Netflix is the integrated cost leadership/ differentiation. The integrated cost leadership/ differentiation is a strategy that organizations can use to ensure that the desire of the customers to acquire highly differentiated products at low prices (Hoffman, 2008). The strategy is aimed at efficiently, to imply with minimized costs, produce highly differentiated products so as to provide customer satisfaction. Netflix has been able to use the resources and technological advancements within its reach to ensure that it enjoys a market advantage over its competitors. On top of minimizing the cost of production that the organization incurs in the process of production, the company reduces the prices that clients have to pay to access the services and products. This strategy helps the company to attract clients in the movie and theatre products to purchase from the company since it offers competitive prices that sometimes are slightly lower than the other companies. Additionally, Netflix has ventured in the sale of only what is highly demanded in the market as such ensuring that the company offers highly differentiated products. To achieve this strategies, there are some tools that the company has used effectively. One of the tools is information technology structure and infrastructure. The company ensures that its services and products are highly advertised through social media and other
  • 3.
    online platforms. Additionally,the company runs on the website as well as Netflix application that provides the option to purchase the company’s product with ease (Hoffman, 2008). The website and application are widely available in the market to provide the company with additional market coverage and product differentiation. The business level strategy that the company uses us highly effective in achieving its objectives and functions. The movie and theatre is highly competitive and to maintain relevance in the market, it is important to ensure that the business level strategies are well implemented to provide the company with additional market advantage. Netflix has been able to use this strategies effectively. Integrated cost leadership/ differentiation provides the company with the opportunity to conduct market segmentation by critically conducting market analysis the company can identify the need of various groups of customers hence ensuring that each market group is satisfied and attended to at their own specific levels. Corporate-Level Strategies A company employs the corporate level strategy to help it to become diversified and hence create and add value to the products that it deals with. Corporate level strategies are those strategies that a company implements during the choice of the products and services that the company should deal with to gain a competitive advantage over other companies dealing with the same or similar products in the market (Hitt, Ireland, & Hoskisson, 2013). Netflix employs corporate level strategies that are value creating diversification. This are strategies that entail creating value to the resources and abilities of the company. Netflix uses economies of scope effectively to implement the strategies that give it a competitive advantage over the other companies. Economics of scope are those practices that a company may use to cut on costs while minimizing on the value of the products.
  • 4.
    Netflix adds valuetot eh products it deals with using four major tools. The tools are technology, delivery, customization, geographical mobility and reputation. First, the organization uses the internet to deliver its products. By use of the wide reach the internet has globally, the company positions itself strategically to meet the demand of the customers hence boost the superiority of its products in the market. The company employs the use of high level functionality hence increasing the value of the consumers. Second the delivery system and tome for the DVD that are rented out is minimal. Customers are able to receive DVDs once they hire them within one business day. This delivery time boosts customer experience hence boosting the position of the company in the market by helping the company to beat existing and future competition since it becomes the customers company of preference in the business of hiring and leasing out of DVDs and other theatre products. Netflix offers products that are highly differentiates and provide customization services. This function is achieved through the provision of movies that are attractive to the market. Through this factors the company has been able to employ a value creating diversification strategy. The strategy is proving to be highly effective since the products that the company deals with are highly demanded. Due to the nature of the products and services and the value that the company adds to the customers. The company has built itself to be the biggest company in the business of renting out DVDs. However, the company should adjust the strategy to ensure that it builds a good rapport with the producer of the DVDs that are rented out. Competitive Environment Competitors form a critical aspect to the existence of any company in the market. Competitors come in two main ways. One is the direct competitors who offer products that are similar to those produced by the company in study or indirect competitors who offer products that may be used as close
  • 5.
    substitutes to thosethat a company deals with hence cutting down on the market superiority of the company. Porters five forces (appendix A) are used to analyze the basics of the competitive environment however, deeper analysis to the market can be conducted by studying other variables such as market commonality, resource similarity, competitive behavior and competitive dynamics. The biggest competitor to Netflix currently is Amaxon.com. Amazon is an online retail company that is gaining much popularity in recent years. The company ventures in e- commerce services in several countries hence attracting customers through a wide range of services and boosting the market share of the company. According to a research published in the company’s website, more than 73% of the American citizens who are attracted to the online video subscription industry prefer to use Netflix or Amazon. The report indicates the status of the two companies in the market as well as the level the two companies is posing to each other. Several variables can be used to conduct the competitive analysis. i. Market commonality Competition brings about the aspect of sharing market between the competitors. Market commonality entails the number of markets that the competitors have ventured jointly and the degree of individuals market to supporting each other (Hitt, Ireland, & Hoskisson, 2013). Both Amazon and Netflix are online organizations which rely on the use of the internet to reach the market. As such, the market comprising of online users is shared within the two companies (Mac, 2016). However, although Amazon has been in the online industry for longer and is more popular than Netflix, amazon has recently started venturing into the subscription video services giving Netflix a bigger influence in the market
  • 6.
    segments. Amazon beatsNetflix in reaching the market with the hard copy DVDs through its stores which are strategically placed in various countries. ii. Resource similarity The resource similarity entails the extent to which competing organizations resources are comparable. Amazon and Netflix rely on the internet as the biggest resource to supply the products. While Amazon may enjoy bigger and more advanced resources such as a more developed online platform as well as human resource, Netflix offers cost leadership that puts it in a position to compete with Amazon (Wiles, 2004). The companies use similar resources but Amazon is advantaged due to its well- developed infrastructure. iii. Competitive rivalry Netflix remains to be the biggest selling company in the DVD renting and Subscription video services. However, Amazon and other smaller competitors are venturing the market. The market is open to new entrants putting the position of Netflix intact. Netflix can be able to survive the competition and remain relevant by conducting competitor analysis and understanding the abilities of the competitors. Additionally, the strategies implemented should be used to drive Netflix into beating any kind of competition. iv. Competitive dynamics This variable entails studying the rate at which competition is growing within the business venture and industry. The DVD renting and subscription video services sector is attracting competition from other companies other than Amazon as well. However, Amazon is viewing the industry as a potential advancements in the sector hence the competition is rapidly
  • 7.
    growing Due to specializationin the sector, Netflix still enjoys a more superior market share as compared to the other competing companies such as Amazon. The strategies have been implemented to a great effect in providing the company with cover from competition. However, the company should improve on its strategies to ensure that the services provided are more customer-endeared to help it remain relevant in the market. Market Cycles Market cycles entail trend that are new and emerging in the market or any business environment. There are two main types of market cycles. Slow-cycle markets are those where firms are shielded from competitive advantage or the sector is protected by difficulties in entrants of new companies (Hitt, Ireland, & Hoskisson, 2013). Amazon is a company that is centered on minimizing costs of production hence achieving maximum profitability. If the market was a slow-cycle market, Amazon would not be a significant competitive factor. This is because other competitors are willing to put more effort in meeting the market standards so as to match Netflix. Amazon on the other hand is well established in other sectors of ecommerce therefore it would be wary of incurring high costs to venture into the market. Fast cycle markets on the other hand are those markets where a company’s competitive advantage is not protected and is therefore vulnerable to imitation (Hitt, Ireland, & Hoskisson, 2013). Amazon has bigger infrastructure and has vast resources to use. If the market was a fast-cycle market, Amazon would remain to be the biggest threat in the market to Netflix since they placed in a better position to compete with Netflix. References Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
  • 8.
    management: Concepts andcases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning. Hoffman, H. (2008, Sep 30). Netflix Adds 2,500 Streaming Movies From Starz. Retrieved from CNET.com. : http://news.cnet.com/8301-13515_3-10055367-26.html Mac, R. (2016, May 4). Forget AWS, Amazon has another billion-dollar business on its hands. Retrieved from Forbes: https://www.forbes.com/sites/ryanmac/2016/05/04/amazon- business-1-billion-sales/#13deace71f8f. Wiles, G. (2004 , August 19). Amazon.com to Acquire China’s Joyo.com for $75 Million. Retrieved from Bloomberg: http://bloom.bg/13SHPx5. Appendices Appendix A: Porter’s five forces that is used to analyze competition in het market Netflix Analysis 9 Running head: Netflix Analysis Week 6 Assignment 2 Joanna Nasser Strayer University BUS499 Business Administration Capstone Dr Keller
  • 9.
    Strengths Netflix maintains astrong brand portfolio. The brand stands on a firm ground making it well known to everyone who is using the brand and even new potential clients. It has become part of the modern society and its market share is increasing owing to the brand. The second strength is mergers and acquisitions with firms along its operation. Netflix has successfully managed to integrate with technology companies in the last couple of years. That aspect is advantages since it has assisted in streamlining its operations and delivery of its content. For instance, it has acquired Millar world, a well-known comic book company. By doing so, it made a stride towards the comic book fields where other companies have made huge profits. Such acquisition is strength for Netflix. The next strength is investment in the sponsoring its exclusive shows. Before it started its original production, Netflix was distributing contents from other production houses. That has since changed with famous shows such as House of Cards. That serves as strength since it has eliminated reliance on content from outside by having its own shows and movies. This aspect denotes its increasing expansion. Huge over client base is strength for Netflix. It has over the years accumulated loyal clients. That has occurred owing to its customer satisfaction which makes it preferred by many. With its content being served across 190 countries and over 100 subscribers, Netflix enjoys the support from such clients leading its capability to trump over competitors. Such a client base
  • 10.
    assures consumers ofits content which translates to revenues (Mazzolini, 2016). Weaknesses Among the weaknesses of Netflix is lack of rights related to the original content. As stated earlier, Netflix distributes the contents from other production houses. Since it lacks original rights to production from other houses, such shows on expiry of rights can be taken to its competitors thus taking its subscribers with it. This thus strengthens the competitor at the expense of Netflix. Secondly, Netflix has been cited as lagging behind when it comes to environmental initiative. Bearing in mind about the call for attention to environment, there is a fair chance its losing ground owing to environment concerns. On the other hand, its competitors have paid attention with the likes of Amazon using renewable energy. This thus can affect Netflix weakening its customer base. Thirdly, even though Netflix is establishing itself with availability of its in-house production, concerns regarding cost of its original content seem to be affecting it. Such costs may be eating up its profit share that could plough-back to other ventures (Mazzolini, 2016). Fourthly, Netflix was known and loved for its pocket friendly prices. However, the relatively marginal increase in price does not seem to be auguring well with its consumers. To some extent, there was even a stumble in its stock price. Consumers seem to be worried if it’s heading towards the rise in price patterns. Tangible and intangible resources, capabilities and core competencies Netflix owns both tangible and intangible resources. Its tangible resources/assets including IT related assets, its furniture and fixtures, building, leasehold improvements, DVD operations equipment and corporate aircraft. In terms of intangible resources, Netflix intangible resources include intellectual property arising from rights to distribute content and its original content. There is also goodwill accumulating owing to its continued operation (Netflix Inc., 2018).
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    Netflix core competenciesand capabilities can be viewed through the lens of its tangible and intangible resources. Technology has been on the fore front in spearheading its operations. Netflix has banked on Amazon Web Services cloud service for provision of its services. It has stored terabytes of data in the cloud enabling its provision on demand to its client. As a result, effective provision of its data has been made possible ensuring that the company is still the leader in providing the streaming service. Secondly, it has worked on its analytics to collect enough data regarding its clients and as a result, be able to provide personalized content to its clients. With personalized mechanism, the company is able to offer recommendation to its client’s thus suiting their preferences. It has in additionally worked with Facebook and gathered information on preferences thus refining its recommendations (Dans, 2018). This aspect has thus made it possible to provide a good customer experience. Segments of General environment that influence corporation The two segments of general environment that influence Netflix are technology and legal segment. Technology is vital part of Netflix. It dependent on technology means it has to keep improving technology in order to continue being on the market frontlines (Dans, 2018). For instance, increased advancement in compression technique will work to assist in quality of streaming with less data being used. The company thus has to keep improving on the compression algorithm to achieve that. Besides that, there is need to focus on convenient payment as well as delivery process of the content. This again relies on aspects of technology for effective service. The next segment is the legal segment. Netflix deals with intellectual property as its products. As such, there is concern for piracy that may affect its distribution. If the content it distributes happens to be pirated, it functions as detriment to the company. There is also the aspect of geo-blocks where its contents it not aired in some regions. Case in point is in North Korea owing to U.S. government restrictions. Such aspect thus denies it market to
  • 12.
    regions that mightsubstantially benefit from its content. Geo- blocks thus influence Netflix availability. Forces of Competition The two forces of competition that are significant to Netflix are level of rivalry and level of substitution. The threat of rivalry happens to be high for Netflix owing to the possibility of being substituted to competitors such as iFlix, Hulu, Amazon etc. Moreover, pay TV stations provide similar content in its programs (Mazzolini, 2016). Netflix has handled this by ensuring that it has partnered with local companies to promote its content. For instance, in Ireland, Vodafone TVs remote have a Netflix button. Such aspect has made it possible for Netflix to reach more market thus increasing its market share and edging out competition (Slattery, 2016). It has in addition worked towards having regionally produced content to enhance marketability in a given region. For example, it has worked to ensure Bollywood related content have increased in its library upon entering the market (Mazzolini, 2016). This has enhanced its competitiveness against its rivals. As far as substitution is concerned, it has worked to enhance their customer experience in order to eliminate possible substitution. For example, its subscriptions are ad free in comparison to the likes of Hulu which has a basic package with ads. Such a move to have ad free subscriptions eliminates annoyance which may induce clients to substitute it. Moreover, it has worked to enhance personalization of its content to suit customer preferences. As a result, this creates the satisfaction of the customers eliminating any likelihood of substitution. Competition in Future In the near future, competition from the rivals can be addressed by ensuring that it continues to build on product differentiation. That will work to ensure that its clients are retained and more potential clients subscribe. For example, assuming it comes up with a compression that uses less data, it works as a plus for
  • 13.
    persons who havelimited data plans. Such clients will be able to access more shows thus opt for Netflix. In terms of threat of substitutes, it can go an extra mile in terms of expansion and introduce sport’s coverage (Sweney, 2018). Sports especially large sporting events and leagues can attract large number of viewers. Such a move can effectively work to promote its competitiveness and eliminate possibility of substitution. That happens as sport lovers will always be inclined to remain in Netflix so as not to lose access to sports. Greatest external threat The greatest external threat to Netflix is none other than illegal sharing and downloads. Netflix is all about streaming the content mainly. The availability of such content through illegal shares eliminates its relevance (Sulleyman, 2017). Moreover, availability of peer to peer sharing is another major threat. For example, a show/movie available in Netflix might be available for free on illegal download sites. With just internet, a person might decide to access the show via downloading it and watching. At the same time, it’s possible to access in peer to peer sharing sites where no one can be legally blamed. Such shares and downloads threaten the revenue share it owns. To handle the threat, Netflix should continue building on its vigilance programs on the internet. Some activities include scanning the internet to realize any existence of any of its contents in unauthorized sites. If such content is available, it should send requests to have such contents brought down. Opportunity It’s not in doubt how much Netflix has grown over the years. It’s leading in the video-streaming industry. To build further on that merit, it should continue to work on cellular mobile data plans which will ensure that it builds on the existing market (Scott, 2017). Through working out data plans with cellular providers, users who access on mobile devices such as smartphones and tablets will be able to access Netflix content from anywhere. That will work when they are away from Wi-Fi service. This will in turn boost their subscription thus
  • 14.
    generating more revenue. References NetflixInc. (2018). 2017 Annual Report. Retrieved from https://d18rn0p25nwr6d.cloudfront.net/CIK- 0001065280/9a58a789-685b-42c1-ac3e- cd5b546e2250.pdfSlattery, L. (2016, Feb 19). Laura Slattery: One True Telly Remote to Rule them All? We Are Still Waiting. The Irish Times. Retrieved from https://www.irishtimes.com/business/media-and- marketing/laura-slattery-one-true-telly-remote-to-rule-them-all- we-re-still-waiting-1.2539879 Scott, M. (2017, Feb 26). In Global Expansion, Netflix Makes Friends with Carriers. The New York Times. Retrieved on 29th Jan 2019 from https://www.nytimes.com/2017/02/26/technology/netflix-
  • 15.
    streaming-expansion-mwc.html Sulleyman, A. (2017,Nov.30th).Netflix Must Cut Prices by More Than Half to Compete with Pirates, Study Finds. Independent. Retrieved on 29th Jan 2019 from https://www.independent.co.uk/life-style/gadgets-and- tech/news/netflix-prices-latest-new-cost-compete-pirate- bittorent-tv-shows-films-torrents-study-a8085196.html Dans, E. (2018, Jul 11).Why everybody wants to be Like Netflix. Forbes. Retrieved on 29th Jan 2019 from https://www.forbes.com/sites/enriquedans/2018/07/11/why- everybody-wants-to-be-like-netflix/#3f243cb47fd8 Sweney, M. (2018, Jul 21st).Netflix has Revolutionized Television. But is its Crown Starting to Slip? The Guardian. Retrieved on 29th Jan 2019 from https://www.theguardian.com/media/2018/jul/21/netflix-crown- beginning-to-slip-subscriber-numbers Mazzolini, P. (2016). Netflix: Financial Position Analysis and Evolution in the Market for Online Streaming Services (Doctoral Dissertation, LUISS University, Rome, Italy). Retrieved from https://tesi.luiss.it/18543/1/174501_MAZZOLINI_PIERFRANC ESCO.pdf Running head: WEEK 3 ASSIGNMENT 1 1 WEEK 3 ASSIGMENT 1 7 Week 3 Assignment 1 Joanna Nasser Strayer University BUS499 Business Administration Capstone Dr Keller Netflix
  • 16.
    Pay TV isone of the industries that were significantly affected by the internet revolution. The 21st Century television industry is gradually departing from the old models that one needs a set- top box and television cable connection, antennae or satellite. Nascent pay television companies are relying on new television models that have WiFi and Ethernet connection capabilities. Netflix is a leader in the internet television industry with millions of subscribers all over the globe. Netflix offers its subscriber Bluer Ray and DVD rentals as well as online streaming of movies and television series. The titular selling points for internet television is a la carte programming that allows viewers to pick the content they would wish to watch and absence of television advertisements- that viewers are growing increasingly of. Netflix and other streaming services solely rely on viewer subscription fees for revenue rather than ads. The strategies employed by Netflix enabled the firm to stave off competition from other pay-TV companies since the competitors had just copied and pasted the traditional model of television on online platforms. Since it had minimal need for infrastructural investments and global reach, Netflix can offer low subscription fees and as a result, maintains a grip on the market. Globalisation The internet is the foremost agent of globalisation. It is regarded as a terus nullius (no man's land) in which territorial boundaries are diminished. Online business has no geographical boundaries while regulatory barriers of entry are severely damaged. The internet offers Netflix and other online television companies an opportunity to reach global audiences at lower costs. Online firms are no longer preoccupied with local audiences; they have shifted their attention to the global market that is comprised of billions of audiences.
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    Consequently, they cantake advantage of higher economies of scale that would enable them to offer discounted subscription fees and still make decent returns on investment. The fact that the company is of American origin gives it an advantageous position as most of the content would be in English, a culturally superior language that is widely spoken around the world (in virtually all the continents). Netflix also has programs that are available in more than one languages. Money Heist, originally a Spanish language program, is available in English and Spanish languages. The inadequacy of the television program has turned millennial to the internet in search of programs more suited for their entertainment needs. These needs are quality programs, on-demand programming and low subscription costs (Cunningham & Craig, 2016). It is the ability to reach global audiences and make content that corresponds with their language, needs and global culture that enable these firms to thrive. Technology Online television firms depend on a motley of technologies for survival. Availability of fast internet connection is the most basic requirement for the firms' business model. The advent of connection of fibre optic cable, even in less developed nations, enable audiences to stream content online. Due to vast geographical distances between the online television firms and their audiences, there is a need for e-commerce platforms such as Visa, Mastercard, Paypal and mobile money transfers. Use of emergent data mining technologies to predict what types of content that audiences would prefer. Netflix used Cinewatch, a predictive algorithm, in producing shows that became a success (Kovacs, 2015). The combination of the technologies as mentioned above enables these firms to operate efficiently across the globe. Industrial Based Model
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    The industrial basedmodel examines firms' competitive edge based on the threats. Porters' five threats are: new entrants in the industry, rivals, substitute products, powerful buyers and powerful suppliers. The severity of the threat of new entrants is highly dependent on barriers to entry such as regulation and the requirement for expensive capital investments (Olsen & Safdar, 2014). Television companies that deliver content via streaming are not required to invest in national infrastructure or work with partners to penetrate the international market. Thus, the requisite capital for such ventures is lower than for traditional television networks. Netflix's approach to television has been and will continue to be, emulated by new entrants who pose threats to the firm's market share. Threats from rivals are perhaps the most severe. Netflix faces threats from HBO and Showmax, which hold considerable market share in the industry. The rival firms engage in price wars and aggressive advertisement campaigns in social media. Substitute products such as pay television are also threats to Netflix. Product differentiation regarding quality would give Netflix an edge over their rivals. The inclusion of local programs and movies in international markets and lower subscription fees have enabled Showmax to endear itself to viewers. Pay television is not extinct, in fact, 43% of Americans still subscribe to pay TV for live events such as sports (Kovacs, 2015). To maximise on their earnings, they should consider adding live sports in their menu. Powerful buyers are a threat to any industry as they impact on a firm's success or failure. In Netflix's case, individual subscribers are influential and have to be appeased by the quality of the content, price and convenience. Netflix does not own most of the content in their network. They rely on show and movies producers who are at times unwilling to release some of the current content that would keep their audience in their network. The workaround the problem is to produce content. House of Cards, Orange is the New Black, Money Heist
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    and Bird Boxare some of the content produced by Netflix. Production of content is a capital intensive venture but the dividends- retaining subscriber base- is worth the money. Resource-Based Model The resource-based view assumes heterogeneity of firms' resource and immobility of the said resources to other firms (Olsen & Safdar, 2014). In the resource-based model, firms' products should be valuable, rare, inimitable and non- substitutable. Online television companies face a risk of having uniform products due to non-exclusive licensing agreements with producers. Non-exclusive licenses are cheaper as the producers can sell rights to several firms. Uniform products would expose firms to price wars which are detrimental to their bottom line in the long run coupled with the fact that the network producers still have the rights to make the programs available to their audiences in their networks. Thus, the importance of firms in the industry to produce their content that would be exclusively available in their networks. Netflix has produced award-winning shows, such as House of Cards and Orange is the New Black, which further endeared the firm to global audiences. These programs (products) perfectly fit the criteria for the resource-based model; rare because they are exclusive to the firm, inimitable, non-substitutable and valuable because audiences love the shows. However, competition from rivals' content such as HBO's Game of Thrones is still a matter of concern. The show is arguably one of the most favourite television contents of the decade and surpasses all Netflix shows regarding global viewership. Netflix maximises its returns on investment and increasing efficiency by creating content that is geared towards satisfying and retaining the customer. Vision Netflix's vision is to provide a good experience for customers
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    who stream contentonline and becoming the best company in the field of online television. The firm also promises to create global markets for content creators. This vision is what guides the firm in ensuring that they stay ahead of the curve regarding technical quality and content quality. The actions, governed by the company's vision, helps in promoting the brand globally. Mission Netflix's mission is to improve customer experience to grow their global subscription base with a view of developing the interface of devices (television, computer and handheld devices). Netflix's contents are compatible with all internet- enabled devices. This increases convenience and enables the company to reach more subscribers regardless of the devices used to access the content. Stakeholders Netflix's stakeholders comprise of: the shareholders, the employees, the suppliers (television networks and independent producer who license the firm to air their content) and global subscribers. Netflix's employees in production, customer service and marketing departments enable the firm to succeed by working in sync by ensuring that each department works towards the realisation of the firm's goals. The ICT department ensures that the subscriber has an easy time online by ensuring that the various technological aspects are functional. The production team provides that the programs are of high quality. Customer service staff ensure that subscriber complaints and concerns are addressed while the marketing de0partment formulates strategies for gaining and retention of customers are sound. The shareholders make a fund for operations available and set policies. References
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    Cunningham, S. &Craig, D. (2016). Online Entertainment: A New Wave of Media Globalization? International Journal of Communication 10(2016), 5409–5425. Kovacs, G. (2015). An Analysis of Strategies by Netflix in the Television Market. Undergraduate thesis, Aarhus University, Department of Business Administration. Olsen, T. & Safdar, I. (2014). Effects of Industrial Organization Perspective and Resource-Based View on Firm Performance: The Moderating Role of Industry Characteristics. Master’s Thesis, Buskerud and Vestfold University College. How to Use This Template Each slide needed in your submission is provided in this template. Do not add slides Do not delete slides (except the “How to Use This Template” slide) Replace the “blue” font on each slide with your presentation content Change all font to black Use bullet points on the slides Do not type every word you plan to say on the slide Enter the text/transcript of your talk in the speaker notes section The speaker notes section is the gray area below each slide Do not enter your speaker notes in comment boxes Do not include audio or video clips Delete this slide before submitting your assignment Delete this slide before submitting your assignment
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    Notes: This isthe speaker notes section of the PowerPoint presentation. Do Not type every word you plan to say on the slide. Everything you would say if you were giving a live presentation should be provided in text form in the speaker notes section of each slide. 1 BUS499 Capstone Assignment 4 Insert Student’s Name Here Insert what you would said to introduce yourself to your executive audience and tell them what you are going to cover in your presentation Do Not type every word you plan to say on the slide. Use bullet points only. Everything you would say if you were giving a live presentation should be provided in text form in the speaker notes section of each slide.
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    2 Firm’s Name Impacts on Impactof Company’s Mission on Success insert a bullet or two describing the mission’s impact to overall competitive success Impact of Company’s Vision on Success insert a bullet or two describing the vision’s impact to overall competitive success Impact of Stakeholders on Success insert a bullet or two describing the impact of stakeholders to overall competitive success Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly determine the impact of the company’s mission, vision, and primary stakeholders on its overall success as a competitive employer in the industry. 3 SWOT Analysis Strategy Strengths and Opportunities Insert a bullet describing the strategy to capitalize on strengths and opportunities Insert another bullet describing the strategy to capitalize on strengths and opportunities
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    Insert exactly whatyou would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a strategy for the company to capitalize on its strengths and opportunities. 4 SWOT Analysis Strategy Weaknesses and Threats Insert a bullet describing the strategy to minimize weaknesses and threats Insert another bullet describing the strategy to minimize weaknesses and threats Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a strategy for the company to minimize its weaknesses and threats. 5 Competitiveness Strategy Competitiveness
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    1st bullet pointof levels and types of strategies to maximize competitiveness 2nd bullet point of levels and types of strategies to maximize competitiveness Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly discuss the various levels and types of strategies the firm may use to maximize its competitiveness. 6 Profitability Strategy Profitability 1st bullet point of levels and types of strategies to maximize profitability 2nd bullet point of levels and types of strategies to maximize profitability Insert exactly what you would say to your executive audience to describe each bullet point on this slide
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    You should thoroughlydiscuss the various levels and types of strategies the firm may use to maximize its profitability. 7 Communications Plan Competitiveness Strategies 1st bullet point on the plan to communicate the competitiveness strategies to stakeholders 2nd bullet point on the plan to communicate the competitiveness strategies to stakeholders Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a communications plan the company could use to make the strategies you recommended on the previous slide known to all stakeholders. 8 Communications Plan Profitability Strategies 1st bullet point on the plan to communicate the profitability strategies to stakeholders 2nd bullet point on the plan to communicate the profitability strategies to stakeholders
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    Insert exactly whatyou would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a communications plan the company could use to make the strategies you recommended known to all stakeholders. 9 Corporate Social Responsibility Responsible (ethical) corporate citizen 1st bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example 2nd bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example Impact of efforts on company’s bottom line 1st bullet point on the impact the efforts have on the company’s bottom line – specific example 2nd bullet point on the impact the efforts have on the company’s bottom line – specific example Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly assess efforts by this corporation to be a
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    responsible (ethical) corporatecitizen and thoroughly determine the impact these efforts (or lack thereof) have on the company's bottom line. Provide specific examples to support your response. 10 References Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning. Insert second source Insert third source Insert any additional sources You should use at least three (3) quality references, one of which should be the course textbook. Wikipedia and similar websites do not quality as academic resources. 11 ASSIGNMENT 4 INSIGHTS 1 ASSIGNMENT 4 INSIGHTS 2 Here are some notes/tips to help with Assignment 4. Also, be sure you are using the Template and follow the steps on each slide and in the Speakers' Notes. If you are unsure how to use
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    Speakers Notes, checkout this video: https://www.youtube.com/watch?v=hZoGMnGU1b8 TIP-Delete Slide 1 “How to Use This Template” Last. Do NOT make audio or video clips for this assignment as Blackboard cannot accept large files. Use only the slides and speakers’ notes. Slide #3 – Firms Name This is the same Firm that you have been writing about in Assignments 1, 2, and 3 (which is why we did want you to use the same firm for each assignment). You wrote about your firm’s Mission, Vision, and Stakeholders in Assignment 1 so you should review that assignment for this slide – yes, you can reuse what you wrote in Assignments 1-3. And remember to review the comments in your graded paper for insights…they are found in the rubric when you go into your graded papers in Blackboard. Slide #4 & #5 - SWOT You wrote about a WSOT in Assignment 2 so you should review that assignment for this slide – remember to review the comments in your graded paper for insights. Slide #6 & #7 - Competitive and Profit Strategy Competitive: see chapter 5 - specifically page 148 and forward AND chapter 6 page 164 and forward Example: this would be from what you wrote in assignment 3 in the Competitive Environments & Market Cycles environment Profit: Chapter 5 page 175 forward example - how does or how could your firm use Unrelated Diversification/Assets/Diversification (page 178-163) to improve financial resources inside and outside of the firm to improve their profitability? Also, review the Learn video lectures on these topics You wrote about a Business-Level and Corporate-Level
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    strategies and theCompetitive Environment/Market Cycles in Assignment 3 so you should review that assignment for this slide – remember to review the comments in your graded paper for insights. Slide #8 - Communication Plan Strategy The strategy is based upon the previous slide - slide 6: In the Speakers Notes: Outline a communications plan the company could use to make the strategies you recommend above known to all stakeholders. As a consultant, if the board of directors approved your recommendations on slide 6, how would you recommend the company announce them to stakeholders. Well, who are the stakeholders? https://www.bdc.ca/en/articles-tools/entrepreneurial- skills/become-better-communicator/pages/how-to-create- communication-plan-to-promote-your-business.aspx and https://www.nfib.com/content/resources/marketing/how-to- draft-a-small-business-communication-plan/ Then, would you host meetings, conference calls, email, a combination of these, etc? Slide #9 – Communication Plan This is a personal item to write about/based on your research over the past assignments, would you go to work for this Firm? The Why/why-not needs to be provided from the following: In the Speakers Notes: You will make recommendations to the Board of Directors based upon your analysis and decision on why the corporation remains or is not a good fit for you. To help with this, consolidate all of the information studied in
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    the previous 10weeks in the Learn, Discussions, and Assignments. Apply that learning now – explain why you would (or would not) want to continue working at this firm based on a business case. Avoid opinion and feelings – you your business learning from this course to make a business case for working (or not working) there. Remember, you are presenting to the Board of Directors who need to hear from you as a business consultant. Slide #10 - CSR Efforts and actions Consider Chapter 10, page 313 and Chapter 12 page 377. Also, what is your firm doing to give back to the local community? https://www.investopedia.com/terms/c/corp-social- responsibility.asp