Analysis of Netflix's Business Strategy and Strategic Position


Added on  2019-09-30

6 Pages1292 Words295 Views
Running Head: HospitalityHospitality[Document subtitle][DATE][COMPANY NAME][Company address]

Hospitality19. Does the firm seem most focused on the economic, accounting, or shareholderperspective of its competitive advantage? Give quotes or information from these sources tosupport your view.Yes, the company seems more focused as the stock remained consistent since 2010 as the stockprices rose from $55.19 to $304.79.This growth will be seen in terms of attractive pricing model.In 2011 Netflix declared a new pricing strategy, that will effectively increase the price of theservice by 60% for the customers. This increase in price will lead to the discontinuation ofservices by many customers.(Netflix: the outsiders, 2017) Again in 2012 the companyexperience a rise and fall in the price of a stock, because of management decisions and theconcerns of the investors. The figures of 2013 show the profitability growth, as the share pricehas been increased by 28.72% from the previous year, which will show the rising cost in thecontext of suppliers and investors of the foreign market, that will leads to high cost of revenues.The year 2013 shows the positive profitability growth, which shows that the market segment istaking the steady growth till 2020.

Hospitality210. What suggestions do you have to improve the firm’s business strategy and strategicposition?The suggestions that are followed by the company for improving the strategic position of thecompany are they have to provide customers with the wide selection of DVD, so to compete withthe existing competitors. (West,2015) The company also has to focus on the easy to usetechnology , so that the customers who want the DVD’s will purchase it and the customers whoare friendly with net surfing can use the streaming services, according to the ease.this step willreduce the cost of posting as well , which leads to cost-effectiveness. The strategy part alsoincludes the marketing and the advertising strategy in which the new customers are providedwith free trials and also made an expansion in the new countries,like Latin America in terms ofproviding services by post.The company has to make an alliance with the Redbox as thecompany is involved in the streaming of videos and Redbox is taking a competitive advantage inthis segment.11. Is your firm highly vertically integrated?The next strategy that is to be adopted by Netflix is vertical integration, which means that thecompany is owning its content and using its own distribution system, for delivering the contentto the subscribers. (Johnston, 2014) Owning the rights and the distribution allows the Netflix tokeep all the revenues with the company , rather than sharing it with distributors,which will makeNetflix , the revolutionary in terms of watching television for US audiences.

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