Strategic Analysis of Netflix: External Environment, Business Level Analysis, and Strategic Intent

Running Head: NETFLIX 0
STRATEGY MANAGEMENT

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Table of Contents
Introduction................................................................................................................................2
Netflix’s External Environment.................................................................................................2
Netflix – A Five Forces Analysis...............................................................................................3
Netflix – Business Level Analysis.............................................................................................5
Netflix Strategic Intent...............................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
Netflix, Inc. is an American digital streaming service provider offers various opportunities to
the customers to stream TV shows episode and movies with the help of internet. The
enterprise was founded in 1997 and its headquarter is situated in California, U.S. Till now,
the company has gained around 139 million subscribers and having presence in more than
190 countries (Brennan, 2018).
In 2018, the total revenue of the Netflix amounted to around 15.79 billion U.S. dollars, has
grown from 1.36 billion U.S. dollars a decade ago (statista.com, 2018). Netflix vision is to
turn out to be the best international entertainment distribution service.
This report undertakes a strategic analysis of Netflix including its business environment,
existing competitors and the strategic content.
Netflix’s External Environment
The sustainability and growth of Netflix in the ever-competitive online steaming industry
signify their strategic decisions the organisation must adapt to thrive and grow. However, to
ensure its future sustainability, the company must invest in cutting edge technology to gain
competitive advantage over its rivals such as Hulu and Amazon (Adhikari et al, 2014).
Various external environment factors impact Netflix business operations includes –
 Political aspects – Due to various political restrictions in countries like North Korea,
China and Syria, the organisation has not tap various potential market yet. Various
permission and censorship also impact Netflix to showcase their particular
programme and TV shows in a country. For example in China, if Netflix wants to
telecast their shows, the company is required to heavily censor their content and this
will limit the plot of a show in various ways (Yan, 2018).
 Economic aspects – As Netflix operates in more than 190 countries, the company are
liable to fluctuating exchange rates as the company bottom line can be impacted. In
addition, their increasing monthly subscriptions over the years induce customers to
backlash their services.