Netflix Goes to Bollywood: Strategic Management Analysis

This report analyzes Netflix's entry into Bollywood, including a strategic management analysis and a PESTLE analysis of the external environment. The report discusses the importance of understanding customer needs and the role of strategic management in developing organizational performance. It also covers the impact of technology and innovation on the entertainment industry, as well as legal and environmental factors. Recommendations for success are provided.

Netflix Goes to
Bollywood

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION..............................................................................................................................12
REFERENCE................................................................................................................................13

Executive Summary
Netflix is the subscription based streaming service which allows to people to watch TV
shows and movies without any connected devices. This is important for each organization to
understand what their customers want and how they could be satisfied so that services are
provided accordingly which supports to develop organizational performance. The environment is
changing day by day where it became important for companies to introduce something new and
attractive so that customers feel happy after use and converted into regular customers. The
management has major role in business functions as it bring number of products and services by
formulating strategies that can help to manage all functions and activities effectively (Sull, and
Turconi, 2021). Each person is having skills to select best option and accomplish their goals by
implementation of strategies. The strategic management refers to an activity which deals with
planning, analysing, and assessing various factors and inputs critical for production. As
technology is changing where business owners are introducing new sources of entertainment
such as face book, Netflix, You tube, and Prime and others which are used to entertain the people
via showing movies, latest serials and other shows that helps to make feel good and attractive
effectively. In other words, strategic management is the planned use of business resources to
reach company goals by managing all functions and activities. This is important for business
concern to analysis the environment and come to know how each customer will feel satisfaction
and happy while offering products and services. The companies are facing many issues during
running their business such as innovation, changes in people’s demand, lack of human resources,
lack of capital, increasing competition and others which are important to solve by bringing
strategies and effective plans as it supports to develop the organizational performance by
offering good quality of products and services. The current report is about Netflix in Bollywood
that means it is used in Hindi Cinema as it is the main stream that can be used to introduce the
different types of cinemas, movies, serials and others which can help to maintain all functions
and activities effectively. Consumers had few options, and they watch a show when it first aired,
you had to plan ahead, wait a week for the next episode, and endure many commercial
interruptions. By assembling large libraries of content and making these shows, movies, and
documentaries available over the Internet, streaming video pioneers Netflix, Hulu, and Amazon
Prime Video shifted power to the audience, allowing viewers to watch what they wanted, when
they wanted, for as long as they wanted, without commercial interruptions (Nafees, and et.al.,

2021). By 2019, 40 percent of Americans had binge-watched numerous episodes of TV shows in
a row on a weekly basis. The present report will help to develop their understanding and
knowledge about particular topic.

INTRODUCTION
Strategic management is field of management where number of formulations and policies
are formulated by an individual which supports to manage all functions and activities. The
strategic management is mainly used in planning, organising, directing, and controlling hich can
help to operate the business effectively. This is important for each organization to understand
what is happening around and then provide the products and services accordingly. The
environment is changing day by day where it became important to introduce different types of
products and services which can help to accomplish the business goals . The current report is
based on Netflix goes to Bollywood that can help to influence number of people and provide
information effectively (Tierney, 2020). Netflix is the subscription based streaming service that
allows members to watch TV shows and movie without commercials on an internet connected
devices. The current report is based on Netflix which used in Bollywood to show latest movie,
and other entertainment program that will help to develop understanding and knowledge
effectively. The report covers analysis of Netflix, summary, company sector/situation, alternative
option and recommendation.
MAIN BODY
Now a day people are becoming so much busy and they do not have time to visit the movie
theatre for spending their holidays. Technology is growing rapidly as new products and services
are introducing by business concern by accepting challenges and changes that might be affect the
organizational productivity and profitability. In business environment there are many
entertainment sources which are used by people to entertain people and make feel them happy
which can help to maintain higher performance and productivity. Netflix executives credited
their success to a business culture that encouraged adaptability and creativity. 7 The "Netflix
Culture Deck," a 127-page presentation, outlined the importance of company culture in
achieving success By 2017, the Netflix Culture Deck had received 15 million views (Kumar,
Gupta, and Dixit, 2020). 8 According to Facebook COO Sheryl Sandberg, it "might well be the
most important paper ever to come out of [Silicon] Valley." 9 No Rules Rules: Netflix and the
Ethos of Reinvention, written by Netflix co-founder and CEO Reed Hastings, celebrates the
company's ethos. Netflix is primarily known for entertaining people by showing movies, serials,
and other forms of entertainment that can affect a large number of people and provide
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appropriate aid in achieving business and personal goals. Netflix is the effective source of
entertainment which is used by people to spend their time by watching movies and videos and
others that affected the business performance and productivity. The management should have
proper information and data regarding particular activity. This is the effective medium of sharing
latest news and videos which supports to influence number of people and maintain higher
productivity (Subramanian, 2021).
Strategic management is the main function which is formulated by employer for the
purpose of developing their organizational productivity and profitability. This branch of
management is concerned with the main planned and unplanned efforts taken by general
managers on behalf of owners to improve the performance of enterprises in their external
environment. In relation to Netflix, human resources manager is having major role as it conduct
the analysis environment analysis and comes to know which factor might be affect the
performance of company. The main strategies of selected organization which delivers are people,
finance, brands, and factories that used to introduce something new and attractive which can help
to operate their business effectively. There are many chances to develop the new sources by
introducing new technology and innovation which can be used to improve the business
productivity. The company needs to prepare budget and analysis it properly which could help to
bring changes in existing performance and maintain higher productivity. While operating any
kind of business there is need to analysis the market and comes to what needs to introduce in
changing environment as it would influence number of people and encouraged to make buying
decisions efficiently. It has seen that managers is having major role who conduct the market
analysis and manage all functions and activities effectively (Urbano, 2020).
Netflix is operating their business by analysing internal and external environment as it helps
to know what is happening around and how each function and activities going to perform and
maintain higher productivity. Netflix is the American subscription streaming service and
Production Company which launched for the purpose of offering television series library via
distribution deals that can help to operate the business effectively and increase the productivity.
The corporate strategy could be in the form of small business, multinational, manufacturing and
service, and innovatory organization that can help to bring the changes in existing performance
and increase the productivity. The manager of organization analysis the macro and micro
environment to operate their businesses. The PESTLE Analysis of Netflix is defined below:
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PESTLE Analysis – This could be explained as framework which is used by organization
to analysis their performance for the purpose of knowing which factor might be affect the
business industry negatively. This is important for managers to use such framework and put
efforts to manage all functions. The PESTLE analysis of Netflix that goes to Bollywood is
defined below:
Political factor – The factor is relates to political government and stability, changing in
government, and others that affected the organizational productivity. If there is any changes in
business regulation then it could be affect. In context to Netflix, stability in American
government could be positive effect on business performance as it supports to influence the
number of customers by offering different kind of services which can help to develop business
productivity. Oppositely, changing in regulations and legislation of American country and other
country where it is operating their business could be challenging for chosen organization to
regulate their business activities and functions (Inder, and Goyal, 2020).
Economical factor – This factor involves current trend, economy, increasing labour cost,
consumer confidence, fuel prices, and GDP rates and others that impacts on business. The
economic factor plays a direct role in international business. It has seen that higher economic
activity and employment level lead to higher spending on leisure activity and entertainment. For
the past years performance of global economy has remained attractive due to which spending of
people has increased more on services like Netflix. Covid-19 has changed the trend where
economic activity of whole world has gone down, in which Netflix has experienced as it has
grown or increased the membership because people had enough time to spend their days by
watching entertainment. The economic activity is expected to start rising again as people stay
home rules are relaxed in US and other region of the world. Thus, it affected the performance of
business positively. Oppositely, due to lower economy and rising in unemployment rates could
be challenging for Netflix to goes Bollywood as people will start cutting down their unnecessary
cost. Thus, it might be affected the business negatively.
Social factor – This factor involves social activities, consumers, changing in needs and
wants, and cultural change and others that affected the business. Netflix is the larger size
American company where it attracts global audience and became essential to pay attention to the
different taste and preferences of people as they belongs to different culture and societies. By
considering language and cultural difference Netflix has brought new content in different
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languages and cultural program which could suit audience f various ages as they belongs to
different region. This changes has supported the to go Bollywood by arranging all social
activities and functions. Oppositely, having other competitor and entertainment organization
could operate their business by offering such kind of services at less prices of subscription that
would affect the business negatively (Cunningham, and Craig, 2019).
Technological factor – This factor relates to new technology, innovation, and
competition in the business industry where it became important to introduce the kind of products
and services as it helps to manage all functions and activities. Netflix goes to Bollywood,
technology and innovation is used by organization for the purpose of managing all businesses.
The company continued to improve their user interface to provide the subscribers best-in-class
experience. It has seen that technology is the main source of competition for chosen organization
as it offers different types of entertainment programs and increase the productivity. The company
uses a range of algorithms and machine learning approaches to recommend episodes and movies
to individual clients. This is how the streaming service has provided an exclusive and one-of-a-
kind experience to its members. On the other hand, technology is not only a source of
competitive advantage, but it is also boosting industrial competitiveness. Netflix competes with
gaming, social networking, and other online streaming services, among other businesses. Netflix
must constantly upgrade its technology and overall products to stay competitive due to severe
competition in the industry. The company invests a large amount of money in research and
development each year in order to improve client participation and popularity. Oppositely, to
change in technology, and having many competitor such as entertainment companies could be
challenging for organization to go Bollywood (Johansson, 2020).
Legal factor – The relation of factor with rules and regulations which are formulated by
government of different country and region, needs to follow to regulate their business
effectively. This factor has major role in content to technology and entertainment industry. While
goes to Bollywood by Netflix has to follow the changed regulations and follow the data
protection act which can help to maintain higher performance. It has seen that there are number
of entertainment industry which is following the laws to operate their business. For Netflix user
privacy is most important a part from protection data so that it has followed the legal
compliances which can help to keep fine and develop the business productivity. On other side,
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not following the legal compliances and regulation in running business and customer related
information then it would be challenging for Netflix to go Bollywood (Dannenberg, 2021).
Environmental factor – This is another factor which related to environment and
supports to develop the organizational productivity by influencing number of customers. It has
seen that if organization is providing better quality of products and services by following the
environment regulations then it would be advantages for company to operate their business
continuously. Every large brand invest in the environment involving Netflix. The organization
understands the regulation and follows it by minimum wastages that can help to influence the
target audience and supports to develop the organizational productivity. Despite its little reliance
on the environment for raw materials, the firm uses a lot of electricity in its operations. In 2019,
the company consumed approximately 94,000 megawatt hours of electricity. Because a portion
of the energy used in the company's business operations, including its offices and studios, as well
as the telecommunications facilities that make up its content delivery network, comes from non-
renewable sources, the company matches that portion with regional renewable energy certificates
to reduce its environmental impact. Aside from that, the company promotes renewable energy
projects in 20 nations and 15 states across the US. Apart from that, the firm aims to be as
environmentally friendly as possible in its office activities. Reduced paper usage and extra food
donations are among the sustainability strategies it has implemented across its offices.
Furthermore, the corporation engages in CSR initiatives that can assist in the operation of a
business and the development of organisational productivity (Biesen, and et.al., 2019).
From the above it has been analysed that there are different factors in external
environment such as political, economical, social, technological, legal and environment that
affected the business in positive as well as negative manner. This is important for business
concern to analysis the environment and comes to know how to convert negative impacts into
positive aspects as it supports to grow a business continuously and maintain higher productivity.
SWOT Analysis
SWOT analysis is a kind of framework which is used by individual for the purpose of
knowing strength, weakness, opportunities, and threats by managing all functions and activities.
This is important for each organization to understand what is happening around and how the
activities needs to perform so that each work will be done effectively. The SWOT Analysis of
Netflix is defined below:
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Strength – Netflix has become the most influencing brand for online streaming content
worldwide. It has brand reputation in the most popular magazine. The company is catering more
than 190 countries across the world and has more than 210 million subscribers who gave the
strong command power to their business. The managers of such organization should have proper
information and data to manage the changes and influence the number of people to develop
organizational productivity (Lotz, 2021).
Weakness – Netflix does not its own content as it shows in their library, which affect the
company directly. The licenses taken from production house expire after some period of time. in
reports it has defined that company has $15.8 billion debt and planned to raise $1 billion through
offering a debt. The company has not used the renewable energy and not created the business
model to promote environment sustainability. The another weakness is rigid prices of their
products and services which could be challenging for organization to operate their business. The
company is over dependence on North America market.
Opportunities – Netflix is the large size organization that could offer lower prices option
to retain their subscribers in international market as it did in India. The company is using
subscription and adds model to influence the number of people and encouraged to make
decision. The company is expending its content library by contracting with number of production
houses worldwide. The company is donating in CSR activities for the purpose of improving
brand creditability. This also influence the target audience by giving discount on annual
subscription (Khalil, and Zayani, 2021).
Threats – The company is having competitive pressure as it provides digital streaming
around the world. The competitors of Netflix increasing every year such as Disney +, Apple TV,
Amazon prime, Hulu, you tube and others affected the business negatively and create challenges
in operation. Digital peak is another challenge forchosen organization hcih could be affect the
organizational productiovity and profitability in changing environment.
Thus, from the above micro environment has been analysed by managers for the purpose
of running their business by considering strength, weakness, opportunities and threats as it
supports to bring changes in existing performance, so that goals could be accomplished.
6

Netflix began streaming media online in 2007, while maintaining its DVD rental service. In
2010, they began spreading their online streaming abroad. Netflix's income increased this year
thanks to its global reach. Netflix has grown enormously over the years, with over 210 million
customers worldwide because to lockdown. With paid subscriptions in over 190 countries, it is
one of the world's most popular internet entertainment providers. Over 70 percent to 80 percent
of Netflix members binge-watch TV shows. It is more than simply a TV show; it also includes
movies, documentaries, and feature films in a variety of genres and languages (Rodman, Farias,
and Szymczak, 2021).
Issues faced by business organization
This is important for each organization to understand what their customers want and how
they could be satisfied so that kind of products and services should be provided accordingly. The
popular media, like technology, has evolved at a rapid pace. In a nutshell, the movie business has
experienced strong viewership in theatres since the emergence of improved formats. Later, the
movie industry transitioned from theatres to digital optic storage, DVDs, and then to online
streaming via blue ray. Netflix is an example of a recent development in an internet streaming
business. Obtaining 100 million Indian members posed significant strategic challenges for
Netflix. Which aspects of Netflix's approach should it stick to and which should it adjust in order
to expand in India? Should Netflix rethink its premium pricing strategy in the country in order to
appeal to budget-conscious customers? Should Netflix reconsider its vow to remain ad-free in a
market where most competitors rely on some type of advertising to fuel profitability? Netflix
had previously refused to show live sports or user-generated material, but it may reconsider those
decisions in order to appeal to Indian users. Should Netflix operate independently in India, as it
has in all other countries, or collaborate with a local partner? Netflix has always eschewed huge
acquisitions, but buying or combining with a local firm might help it expedite its growth in India.
This the larger size American organization that is operating its business more than 190 countries
by entertaining people and spending their time effectively. The major challenges faced by Netflix
are defined below:
Stiff competition – In business environment there are different types of businesses which
are established for the purpose of introducing products and services as per customer requirement.
In context to Netflix, there is stiff competition in the market such as Amazon prime, You tube,
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Disney + and others that are creating higher competition in entertainment industry and affected
the business [production house and profitability. Amazon is providing prime membership with
shopping to their targeted customers which could help to influence the number of people and
develop the organizational productivity. Netflix is facing the higher competition in the market as
having number of entertainment industry which creates the challenges to operate their business
(Bucciferro, 2018).
Payment of increased fee – This is another challenge faced by organization in paying the
fees of studio and other activities which directly affect the organizational productivity and
performance. It has seen that studios charges the highest amount to entertainment industry for the
purpose of publish their content, significantly it increases the cost of the company which
recovered by customers by increasing the prices of subscription. Netflix is the American
organization that pays high charges to different studios in different regions and keeps its prices
higher that affected the business performance by losing number of customers and productivity
negatively.
Managerial challenge – This is another challenge which could be affect the business
productivity negativity. It has seen that managers is having major role who analysis the vacant
position and recruit the people accordingly which can help to run the business. If there is no
managers then organization faced the mismatch and less number of employees at the workplace.
In Netflix, number of employees are working continuously, have cultural difference and age
difference which creates the challenges to accept the new technology and innovation in their
entertainment industry as it affected the business negatively. The managers should provide the
training and development programme to their employees and get ready to change work which
can help to maintain higher performance and productivity effectively (Baldacchino, 2019).
Globalization – Globalization is the spread of products, information, technology, and
jobs across national borders and cultures. This provides results in the expansion of international
cultural, economic, and political activities which can help to operate the business effectively. As
people, ideas, knowledge, and goods move easily around the globe needs to becoming familiar.in
globalization companies are integrating with countries and bring changes in their products and
services which might be affect the organizational productivity. Netflix faced the challenge of
globalization where it faced the change in government of different country that affected the
business productivity and performance in changing environment.
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Use of new technology and digital marketing – the environment is changing day by day
where it became important for company to introduce the new products and services as it would
help to influence the number of people and encouraged to make buying decisions. It is true that
new technology would success always as it might be getting fail. If technology has gone fails
then it directly affect the performance and reverse profits as it will reduce. Netflix could face the
challenge of failure of innovation and new technology as it could affect the business productivity
as well as profits negatively. In reports it has analysed that Netflix has faced the challenge of
implementing the application and viewing subscribers which affected the business. Digital
marketing is another challenge which faced by selected organization to go internationally as
there are many channel of digital marketing created confusion to use as it affected the
organizational productivity and performance negatively (Dizon, and Thanyawatpokin, 2021)
Lack of leadership and management – For each organization leadership and
management is most important as it used to arrange all functions and activities effectively in
changing environment to workplace where number of people works collectively. Leadership is
the process of directing, inspiring, and motivating their staff to work by accepting challenges
which could help to operate the business effectively and supports business activities. Netflix
faces the challenges of lack of leadership while go to Bollywood as there is no effective leader
who take responsibility of their staff and provide them guidance in accepting the new technology
that directly affected the business negatively.
Economical growth of country – It has seen that if there is good economical condition
of particular country then there are chances to grow their business by offering better quality of
products and services. In case not having good economy of the country then could be challenging
for organization to influence the number of customers and affect business. In pandemic period
employment rate has been decreased in some countries where it became challenging for Netflix
to recover its cost as number of subscription has been reduced. Thus, it has affected the
organizational sales and productivity negatively in the changing environment.
Strategies that could be used by Netflix to overcome the issues
As business industry faces many challenges and issues while operating their business it
became important to introduce the kind of products and services as it helps to maintain higher
performance by managing all functions. To deal with all issues and problems Netflix requires to
follow the strategies which are discussed below;
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Pricing strategy – For each organization it is important that products and services which
are providing by organization should be at lower cost as it will helps to influence the number of
customers. in context to Netflix, management should be focus over its pricing strategy where it
needs to lower its prices of their subscription and activities that could help to influence the
number of people and supports to develop the organizational productivity (Smith, and et.al.,
2021).
Differentiation strategy – This could be explained as effective strategy in which
organization needs to introduce the different taste and design of products as compare to others
for the purpose of dealing with competitive issue. If organization is able to offer unique products
and services then it will be good opportunity for company to influence the subscribers and
increase the target audience. Netflix is the larger organization that serves entertainment services
in more than 190 countries where it needs to bring uniqueness in their services then only it could
survive in changing environment and increase the productivity.
Hybrid strategy – This strategy can be defined as viable mix of at least two unique
products and procedures which could help to operate the business effectively. It is a long term
event strategy which impacts positively by managing all functions and activities effectively. in
relation to Netflix, hybrid strategy can greater volume that leads to lower margin because of
superior cost base. This strategy is helpful for organization to bring changes in existing
performance which supports to develop organizational productivity (Damanik, and Katemba,
2021).
Focussed differentiation – This strategy is helpful for chosen organization as make
choices between focus and differentiation in case of sales grow. This strategy is used to solve
stakeholder issues as they are important part of business organization helps to manage all
functions and activities effectively. In relation to Netflix, management needs to focus over
differentiation and stakeholders needs which could be affect the number of target audience and
supports to develop organizational productivity.
24/7 hours – The customers feels happy and satisfied if organization is able to provide
services at all time. As people wants to spend their time so they uses different entertainment
channel at anywhere, anytime which can help to operate the business effectively? In relation to
Netflix, studio is providing 24/7 hours entertainment program to their customers who could see
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any time and anywhere which can help to make feel them good (Neira, Clares-Gavilán, and
Sánchez-Navarro, 2021).
More activities which can be used by Netflix to overcome the issues.
 Partner with local cable providers and production houses to expand into new nations and
stream local and international content in many languages. They will get more revenues and
subscribers this way.
 To promote other content and give ratings, Netflix should interact with IMDB, Rotten
Tomatoes, and entertainment influencers.
 Netflix should tighten its security and uncover whoever is behind digital piracy to avoid
digital piracy.
 They can offer even lower-cost Subscriptions to certain economic groups that can help to
influence the number of people and supports to develop the organizational productivity
(Hadi, and Saputri, 2020).
 Provide a more user-friendly interface for their subscribers on their application and website.
 The company should make the use of digital marketing and social media for the purpose of
keep connect with people or targeted customers as it helps to develop the business
performance and productivity effectively.
 The Netflix should have enough resources and capital which can be used to introduce the
new technology and innovation at the workplace as it helps to influence the number of
people and supports to go Bollywood.
CONCLUSION
From the above it can be concluded that to deal with competitive issue there is need to have
effective strategy within Netflix as it influence the number of people and supports to manage all
functions and activities. Despite rising competition in the streaming-video sector, Netflix
management believed the company had significant room to grow. They estimated that Netflix
will eventually grow to between 60 and 90 million customers in the United States, while
accounting for only 10% of total television viewership in the United States in 2019. 81 To lure
new customers, Netflix spent a lot of money on new programming. The company spent $15
billion on content production, acquisition, and licencing in 2019, up from $9 billion the previous
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year. Netflix financed their content investment primarily through debt 82. In 2018, the firm
produced nearly 2,000 hours of original material, more than four times that of HBO.
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