Managing Innovation Assessment for Netflix: Theory Explanation and Application

Managing Innovation
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Theory Explanation................................................................................................................3
Theory Application.................................................................................................................7
Recommendation for future possible pathways of product and services for chosen
organisation..........................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and Journals:..............................................................................................................14
Online:..................................................................................................................................14

INTRODUCTION
Innovation is a fundamental thing for any business organization in order to grow and
develop their business in the potential market. It is also essential to enhance the customer base of
a brand so that customer do not get bored with the regular products and services. Innovation
refers as a term that is utilised either the act of launching something new as in an organization
that rewards creativity, together with the innovation, or it also can be a completely new thing.
The company which is chosen to complete this assessment is Netflix. It is a subscription
streaming service, as well as production firm in American administration. The launch year of this
organization is 1997 (Asheim, Isaksen, and Trippl, 2019). It furnishes a film and television series
via distribution and own production system, which is called as Netflix Originals. As of 2022, the
compand had over 221.6 million subscribers across the borders. Also, it delivers its services
world-wide such as Europe, Canada, Africa and the Middle East. In the following report, several
models or theories of innovation have been explained in detail. Later, there will be an application
of innovation theory on the products and services. In the end, the recommendations will be based
upon the possible future development pathways of the goods and services.
TASK
Theory Explanation
Blue Ocean Strategy:
The blue ocean strategy is about assisting the organization increase uncontested market
space separate from other, akin businesses. Such new market spaces are known as “blue oceans”
which signifies to compare with the endeavour for survival “red oceans” driving with stiff
competition. The blue ocean strategy shows the synchronous move of high product
differentiation, along with low cost, making the competition not relevant. As per the viewpoint
of Professor W. Chan Kim, blue ocean strategy refers the strategy required when supply
increases demand in a market. Such kind of situation is apply to various industries and sectors
and will be even more prevalent in the future. This approach of innovation promotes the
company to innovate and evolve new, affordable commodities that make competition under
consideration. Hence, the main objective of blue ocean strategy is for companies to identify and
develop “blue oceans” and avoid “red oceans” so that the organization will have more success,
enhanced profitability and fewer risks in the blue ocean market. In case of Netflix, this approach

also demonstrate company to look for market areas where there is only few competition and
where there is no pricing pressure (Belso-Martínez, and et.al., 2019). It says that when the
organization faces less competition to grow, business try for avenues and verticals of recognizing
new business where they can enjoy less competition in markets.
Sequence of developing a blue ocean strategy:
There is a sequence to build the blue ocean strategy that are buyer utility, price, cost and
adoption. It enables business firms to develop their executable business model and make sure
that a business profits from the blue ocean it is evolving. The starting phase of buyer utility
defines that the organization should create a reason why their customer should buy the specific
product and service from them. Second phase is of price, which says that the company should
create a price for which customers are ready to pay. It is important that the product or service
should be reasonably attractive so that customer will ready to pay even higher prices. The third
sequence is cost, which signifies that it develops a jump in value for itself in the way of profit
which means the product or service cost minus the production cost. The final phase in the
sequence is to resolve the issues in adoption. Therefore, it is important for the Netflix
Organization to identify the key issues while applying the innovation idea and more importantly,
to resolve the issues so that the process of innovation goes smoothly.
Business Canvas Model:
Illustration 1: Blue Ocean Strategy: How to Make the Competition Irrelevant, 2020