Introduction
Business competition is a conditional outlier that prominently impacts the quality and quantity along the margin of growth and development. Netflix is one of the companies that profoundly incorporates strategies to enhance the global market acquisition (Türkmen, 2020). Over the decades, technological advancement steered the paradigm shift on the segmentation of the international market attributing to an emergence of a niche.
Transcendentally, Netflix structures its competitive advantage based on the contributory effect on understanding the niche consumer needs (Steck et al., 2021). It is the core responsibility of managerial teams to incorporate frameworks that optimally render significant performance on product and service delivery systems. Corporate strategy and differentiation approaches proficiently influence the structural component on Netflix’s marginal capacity to attain a larger market share.
Netflix Strategy Process
Netflix follows a profoundly functional mainframe on enhancing its strategy process encompassing product differentiation and cost leadership. According to Rothaermel (2021), one of the critical components in strategic management entails customizing products and services for ultimate customer satisfaction. The paradigm shifts on the informational flow of products and services among consumers fostered a dynamic context on behavioral code. In this case, clients irreproachably exploit the attained knowledge during purchase decision-making.
Reed Hastings, Netflix CEO indicates the motivational outlier for the foundation of the company engulfed solving an imminent problem on consumer behavioral quotient within the entertainment industry (Steck et al., 2021). He recalls paying an expensive penalty for losing a DVD borrowed from a library. As a result, Hasting focused on developing a differentiating factor to intensify the competent baseline on consumption rate. Ideally, the foundational pillar of Netflix’s competitive advantage is the advancement of product and service differentiation initiatives.
Apart from incorporating product uniqueness, Hastings motivation further encapsulated fostering a diversified portfolio on pricing gumption. Cost leadership encapsulates the strategic exploitation of productivity methods enhancing the marketability of the competent service delivery (Rothaermel, 2021). Research indicates that Netflix’s competence lies in the ability to satisfy consumer needs at an affordable quotation (Dizon, 2018).
An integration of product differentiation and cost leadership attributes to an elevated strategic marketing and competent consumer service experience (Rothaermel, 2021). As a result, individuals access the Netflix platform at an exchange of a friendly subscription fee to watch the variant programs for entertainment. In 2017, the Netflix CEO received a medal for the best drama series in the Golden Global awards (Dizon, 2018). It is an initiative that further demonstrates the apt success rate based on the intersection of product differentiation and cost leadership quotient across the niche online global market.
Netflix’s fast growth poses a proficient challenge towards incorporating distinctive perspectives on marketability and competitiveness. According to scholars, one of the key Netflix’s outliers involves maximizing on the online platforms (Türkmen, 2020). Therefore, the business strategy aligns with the comprehension of consumer needs among the online clients.
Technological advancement steered the elevation of informational exchange contributing to emergence of a global village. Despite the establishment of a niche for the corporates, the vital onus lies in the retention of inventive environment for the subsistence of enterprise model. Essentially, Netflix faces a profound contention regarding the core perspectives to exploit on improving customer satisfaction and loyalty along the consumptive spectrum.
Netflix Innovation Strategy
Competitiveness in a corporate world entails the advocacy for multidimensional mainframe on productivity and marketability. Netflix’s business model prominently disrupted the U.S. entertainment industry on account of enhancing the digitization of the production and marketing process. One of Netflix’s business objectives enshrines incorporating initiatives steering higher international market penetration, mainly technological resources (Rothaermel, 2021). The initiative proficiently influenced customer satisfaction based on the clients’ easier accessibility of the products and services across the online dimensions (Porter, 1996).
Apart from tapping the niche market segment, Netflix further exploited innovative frameworks on the marketability of the service delivery quotient. The company customized the thematic constructs of the movies and series based on the consumer need while eradicating the monopolistic control on product informational flow.
Conventionally, such Netflix competitors as Hollywood, CBS, and NBC encounter an abstruse strife due to the cognizant innovation scale. Netflix’s foundation engulfed the development of a platform that complements the role of a video library. In this case, Hasting incorporated an algorithm that enhanced the company’s invention on improving customer satisfaction (Türkmen, 2020). The main objective involved ensuring the client accesses appropriate video based on the current moods to elevate the moods. Ideally, the business model formed around the conceptual mainframe of consumers’ feelings against the competitor’s essence of transactional quality experience.
The Netflix model changed over time with based on the articulate engagement of distinctive stakeholders. Essentially, the company’s innovation strategy evolved towards the incorporation of programs within the online platform while the managerial team coordinated with the internet service providers to better streaming experience. The innovation encapsulated ensuring ultimate customer service experience along the margin of customized products and services (Porter et al., 2018). Further, the corporate’s foundation advanced into production and casting television shows, series, and movies. The initiation boosted the market acquisition rate as a competitive advantage due to the integral attention to the customers’ necessities on entertainment spectrum.
The incorporation of technology resources is an ideology that significantly poses a challenge to businesses on account of the acquisition. Due to globalization, companies incorporate technology in different forms to achieve superiority in the market. It is a phenomenon that renders the increase in business competition across the market scope. However, the core issue that abides by the proper selection of technology resources entails incompatibility with the enterprise model. Poor selection of technology resources poses a great challenge in fostering the superiority of the products and services.
Therefore, it is paramount to select the right technology to achieve certain business objectives (Buckingham et al., 2020). In this case, the right choice of technology influences the effectiveness in the process of product development. The integration of technological advancements with the corporate project of product development renders the emergence of a superior commodity for the market.
One of the significant technological advancements encompasses the advent of artificial intelligence in computer systems that foster the efficient delivery of services. An algorithm refers to an entity embedded in various enterprise platforms. An excellent example of a company that utilizes artificial intelligence is Netflix. The algorithm learns the browsing habit of the client in the portal such as shopping sprees.
Once the algorithm gathers the basic client information, it establishes a behavioral pattern and predicts the interesting products and services for the client during browsing (Mansyur & Aprianingsih, 2022). The utility of the algorithm embedded in the artificial intelligence renders the ability to automate systems in optimizing the customer’s experience. The incorporation of the artificial intelligence automates the production process hence increasing the amount of input and output at a cost friendly phenomenon.
Netflix Core Competencies
Netflix’s business model features distinctive competencies influencing the niche market acquisition rate. The company’s fortes enshrine cost leadership, differentiation, and effective marketing initiative. Research notes that Netflix remarkably focuses on improving the service experience level among consumers through the incorporation of customization features (Arauna & Wibowo, 2022).
Fundamentally, the major insight lies in the ability of identifying the client’s needs and maximizing on the personalization of the delivery system. During the onset, the company’s objective encompassed offering a solution to the monopolistic control of the video libraries on consumptive patterns across the populace. Therefore, Hasting developed the online platform that further advanced in the entertainment industry to ensure an adept competitive outlier.
The core competencies significantly contribute in the sustenance of Netflix competitive advantage based on the essential construct of promoting customer satisfaction and loyalty. The diversification of commodities within the Netflix platform and modification of outputs fostered intensified niche market acquisition. One of the vital strategies to hone the competitive advantages entails elevating the exploitation of technological resources for business practice (Buckingham et al., 2020). It is crucial to establish an integral plan on factorial modifiers to project the outcome from the instituted innovation framework.
Netflix Maturity Gradient in the U.S
Netflix optimally commands a significant percentage of the American consumers due to the customization features of entertainment library. Primarily, researchers agree that the core foundational aspect of enhancing the market performance in the U.S regards optimizing the streaming services (Arauna & Wibowo, 2022). Therefore, intensifying the convenience of the products and services is a necessity in the promotion of Netflix.
Additionally, researchers indicate that it is crucial to amplify the marketing and promotional techniques (Arauna & Wibowo, 2022). The implementational perspective encapsulating effective advertisement of Netflix features prominent awareness among the American citizens concerning the profitability quotient from Netflix as a medium of entertainment.
The popularity index of Netflix forms a strategic opportunity for different stakeholders to intersect initiatives elevating Americans’ productivity. One of the constituent prospects enshrines the introduction of educational programs within the online platform. The concept attributes to the fluency in the value exchange quotient mainly across the learning community in the U.S while reconstructing the Netflix future multidimensional functions.
In a different spectrum, another gateway strategy engulfs the incorporation of e-sports. Researchers stipulate the e-gaming is an emergent niche in the online market that is profitable and entertaining (Arauna & Wibowo, 2022). Therefore, the strategic embodiment of the element within the Netflix business model boosts the acquisition rate of the online niche entity while intensifying the profitability scale internationally.
Netflix International Market Penetration
Different factors influence the performance of an organization in an environment that includes external and internal entities. External relationship building is essential among employees since it enhances the optimal customer service experience. During the evolution of consumer behavior, the majority of clients realized the importance of aligning their loyalties with certain companies (Purwaningrum & Hamsal, 2022). It is a perspective that enhances consistency in assessing worthiness despite price variations. Therefore, an organization’s external relationship as an inclusive entity involves promoting the participation of suppliers, government, and relevant stakeholders.
Strategic management is a necessity in the development of competitive advantages for an international company. Rothaermel (2021) argues that Netflix poses a significant potent on international market expansion and acquisition. The core foundational outlier for the initiative underlies the exploitation of exponential globalization. Transcendentally, Netflix’s business opportunity aligns with the spread of technological utilize globally and the advancements (Cozzolino et al., 2018).
In this case, it is crucial Netflix focuses on countries with higher similarity index on geographic and cultural quotients. Excellent examples of the nations include Canada, Latin America and the Caribbean due to the geographical proximity and relativity on cultural ideologies. Canada is a strategic international location due to the high speed internet connectivity and adjacency to the U.S. Further, Latin America and the Caribbean’s nearness to the U.S. affirms as a strategic entity as well as the vast market population. One of the distinctive elements in the enterprise model enshrines penetrating in the international market segments with high-speed internet connectivity and geographical synapse.
In a different continuum, Netflix restructured the strategic management on international market penetration to enhance customer satisfaction. Ideally, Grigoriou & Rothaermel (2017) indicate that the technological-based companies face a prominent opportunity to customize the products and services and the delivery system. Therefore, during the Netflix case study, Rothaermel (2021) addresses the corporate’s competence gradient under the spectrum of localizing the broadcasted content. An excellent example is the incorporation of diverse language translations maximize entertainment experience across the distinctive regions.
Focusing on geographical and culturally proximate international market saves costs on infrastructural development and setup for the operations and the acquisition initiative (Rothaermel, 2020). Further, Netflix incurs additional insights during the penetration process to incorporate in the competent business model. The optimal similarity index is a framework that reduces emergence of key challenges, mainly, censorship and legal issues.
Conclusion
Conclusively, there is a profound opportunity for Netflix international market growth based on the attributable factors of significantly exploiting the technological resources. The key challenges encountered involve disparity on socio-economic policies across different countries. Therefore, it is crucial for the Netflix management to incorporate methodologies enhancing remodification of the competitive advantage. Netflix maps a dynamic process on strategic management that prominently contributed to the expansion and overwhelming the competitors along the gradient of providing solutions to the issues in the entertainment industry.
References
AFI Strategic Framework
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Additional Peer Review Journals
Dizon, G. (2018). Netflix and L2 learning: A case study. The EuroCALL Review, 26(2), 30-40.
Steck, H., Baltrunas, L., Elahi, E., Liang, D., Raimond, Y., & Basilico, J. (2021). Deep learning for recommender systems: A Netflix case study. AI Magazine, 42(3), 7-18.
Türkmen, B. (2020). Utilising digital media as a second language (L2) support: A case study on Netflix with translation applications. Interdisciplinary Description of Complex Systems: INDECS, 18(4), 459-470.