Netflix: Analysis of Global Growth and Market Entry Strategies

This report provides a critical analysis of Netflix's growth strategies, focusing on the influence of globalization. It begins by comparing Netflix's market entry strategies in the UK and India, highlighting the differences in approach and pricing. The report then explores opportunities for Netflix's expansion into Syria, considering various expansion strategies such as concentration, diversification, and integration. It recommends a sustainable approach for successful expansion in the Syrian market, emphasizing the importance of product and service improvements. The report also examines the impact of technological advancements, government regulations, and international trade on Netflix's operations, providing a comprehensive overview of the challenges and opportunities the company faces in the global market. Overall, the report assesses Netflix's current strategies and policies, concluding that they provide a sustainable competitive advantage.

Critical Issues in
Business Management

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Introduction to Netflix.................................................................................................................4
Critical Analysis of Growth Strategies Adopted by Netflix Influenced by Drivers of
Globalisation...............................................................................................................................4
Comparison and Evaluation of Market Entry Strategies Adopted by Netflix in UK and India..6
Opportunities for Expansion for Netflix in Syria........................................................................8
Recommendation of One Sustainable Approach Helping in Making Successful Expansion in
the Syrian Market........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalisation refers to the process which is related to increased integration in between
different countries, companies and economies of the world in order to make the trade relations
better in between them (Lasserre, 2017). The assignment will start with making comparison of
the market entry strategies used by Netflix both in the Indian Market and U.S Market. In addition
to this, the discussion will also be made on market growth strategies of Netflix which were
influenced by drivers of globalisation. Further the discussion will be made about the
opportunities for expansion for Netflix in Syria. Lastly, the assignment will make its focus on
sustainable approach with the help of which Netflix could make their expansion processes in
Syria as well.
MAIN BODY
Introduction to Netflix
The company chosen for the completion of this assignment is Netflix which was founded
in the year 1997 and is headquartered in Los Gastos, California, U.S. The company was founded
by Reed Hastings and Ted Sarandos. Netflix deals in the Entertainment and Mass Media
Industry. The company provides their customers with different types of services such as film
production, film distribution and television production as well. Along with this, the company is
also having a number of subsidiaries with the help of which it is operating in different countries.
Critical Analysis of Growth Strategies Adopted by Netflix Influenced by Drivers of
Globalisation
There are different drivers which impacts upon the working of an organisation and took it
to globalised level. Growth strategies are those strategies with the help of which it is possible for
an organisation to make increment in its revenues and incomes (Lee, Lee and Joo, 2018). The
Growth Strategy which have been adopted by Netflix is Product Development and Market
Development. Both of these strategies are of Ansoff Matrix's Strategies and the explanation of
which are provided as under:
Product Development: The following is the strategy with the help of which an organisation
such as Netflix makes improvement in the feature of their products and services in the existing
market in order to make an increment in their sales and revenues.

Market Development: The main strategy which have been adopted by the company in order to
increase their sales and revenues. Under this strategy, an organisation analyses and explores new
markets for their products to sell. The following is the main strategy which have been adopted by
Netflix for making improvement in the number of their customers as well as in their business as
well.
The following strategies were influenced by the drivers of globalisation which have been
provided as under:
Technological Advancement: In today's world, technological advancements in the main factor
which is making contribution in the growth and development companies in the world. Netflix has
also been effected by this factor. The following driver is impacting both in the positive as well as
negative way to the company (Glowik, 2016).
In the positive impacts, it is related to easy access of services of the company to the
customers sitting at anywhere. Another positive impacts is of security and secrecy provided by
Netflix at the time of making payment for subscriptions which keeps the data of their customers
safe and secure. The high quality video content provided by the company proves will help in
providing customers with better experiences.
Along with this, there are also some negative impacts of this driver of globalisation
which is related to network errors and server issues that impacts negatively upon the customer
satisfaction. The negative issues are also related to the quality of videos and their audio sounds
as well which are provided by the company. In case of bad quality and sound, the impact will be
negative on customer experiences. So it is important for the company to work on making
improvement in positive impacts as well to reduce the negative impacts also. Sometimes,
buffering issues also becomes a reason of negative customer experiences of customers.
Government: There are some issues related to government that also impacts upon the working
of an organisation in a specific country. Government also impacts upon the working of an
organisation in both the positive as well as negative way (Evans and et. al., 2016). For example,
the issues related to content which are to be prevented from the reach of children are also
important issues which are considered and negatively impacts upon the working of an
organisation. Furthermore, it is also related to making improvements in the social domination as
well because some contents provided by it may be does not point out to some special society or
community but it is possible that they could take it their own. So this will also create social

domination issues for the company impacting negatively on their performances as well. So there
are chances that the company could indulge in ethical and social issues which will impact
negatively on the performance of the company.
International Trade: Trade relations in between different countries also decides about the
expansion or not of an organisation in a country. Taking an example of Netflix which is not
operating in China, Syria and some other countries (Where is Netflix available?, 2019). The
reason of non operation of Netflix in Syria is because of restrictions of U.S. Government
Government on American Companies in making their operations in countries such as Crimea,
North Korea, Syria. So the relationship in between different countries and their government also
do possess an important role on the growth and expansion of an organisation at international
level (Babanina, 2016). However, it is also possible that there are some countries where the
operations of the company could be easily carried out impacting not much on the operations of
the company.
Comparison and Evaluation of Market Entry Strategies Adopted by Netflix in UK and India
Market Entry Strategies are the strategies which are used by companies in order to make
the expansion of their business in the new markets with the help of which improvement in the
market share as well as improvement in the revenues and incomes of the company could be
made. So the comparison of the market entry strategies which are being adopted by Netflix in
entering into India and UK are provided as under:
Netflix (UK) Netflix (India)
 The strategy which have been adopted
by Netflix in order to enter the market
of UK is with the help of making
contracts with the technological and
logistical support providers which are
needed by the company in making
successful completion of their task
(How Netflix Expanded to 190
Countries in 7 Years, 2018). With the
help of this strategy, the company has
 The strategy which have been adopted
by the company in order to expand their
business to India is direct exporting. In
the following strategy the company
makes use of direct establishment of
business of the company in the new
marketplace. Along with this the
company has also adopted low pricing
policy for successful establishment of
business of the company. It is because

made its individual establishment in the
country not with the help of forming
joint ventures or any other source.
of local competitions and low
international currency level of the
company that has impacted upon the
pricing policy and profits of the
company.
 The Pricing Policy of the company in
relation to people of UK is affordable
and low which is $8. So the people of
UK can make use of the services of the
company in an easy way for the
satisfaction of their needs and wants
(Lobato, 2019).
 In comparison to UK, the pricing policy
which have been adopted by the
company in India is not affordable by
the people in starting. However, on the
international grounds, the price which
have been setup by the company is not
much but looking on the international
currency prices of India, the price
seems to be high to citizens of India.
 Looking on the market of UK, it can be
easily said that there are large number
of competitors in the market of the
company providing the same services
which Netflix is providing to their
customers.
 As in the market of India, the situation
is different, the company is having
competitive advantage over their
competitors as the services provided by
this company is not provided by others.
There are some local competitors in the
market with which it is not much
difficult for the company to deal.
Evaluation:
From the above comparison made in between the market of UK and India for Netflix, it
has been made clear there is a day night different in between the two markets. The market entry
strategy which have been chosen by the organisation in both the countries is good as proper
market analysis has been done before entering in the market. The development in the number of
customers and expansion rate of the business of the company is also fast in comparison to the
competitors of Netflix. The pricing strategy which have been chosen by the company is also
good as price has been set according to the disposable income of customers of the two different

countries. Overall it can be said that not only the market entry strategies but also the current
policies and strategies of working of the company are good and will provide Netflix with
sustainable competitive advantage over their competitors.
Opportunities for Expansion for Netflix in Syria
The company do also have opportunities for expansion of their business in Syria as well.
The following country lies in the Western Asia but it does not consist of availability of services
of Netflix in this country. So it will be beneficial for the company to make expansion process of
the company in that country as well. This will impact positively on the number of customers,
market share as well as will have positive impact over the revenues and incomes of the
customers also (Expansion Strategy, 2019). There are different strategies with the help of which
Netflix could make expansion of the business in Syria. The explanation has been provided as
under:
Expansion by Concentration: In the first option, the company will make use of making more
investment in their product lines and making new innovations in their products and services so as
to enter and capture the market.
Expansion by Diversification: Here, the business will develop a new products along with new
market for newly developed products.
Expansion by Integration: This strategy will make its focus on combining with one or more
companies in the new market area so as to making their operations.
Expansion by Cooperation: This strategy is followed when company agrees with other to work
with mutual consent and to carry out their business operations.
Expansion by Internationalisation: This strategy is used when the business wants to expand
itself over the national boundaries.
Recommendation of One Sustainable Approach Helping in Making Successful Expansion in the
Syrian Market
In order to make the expansion of the business to be possible in the Syrian Market, the
best opportunity for the company will be with the help of Expansion by Concentration. Netflix
with the help of making improvement in their current products and services could make it
possible to make successful the expansion process of the company. It is because for entering first
in any market, it is important for an organisation to have something new for their customers that
could help in attracting then and provide them with a reason to buy the products and services of

an organisation. The same is also in case of Netflix so the concentration strategy will help
Netflix to avail the opportunity to expand their business to Syria (Armstrong and et. al., 2018).
CONCLUSION
From the above assignment, it has been concluded that market entry strategies and
growth strategies are an important concept for the companies that helps to ensure their proper
growth and development. On the other hand, the conclusion has been drawn about the negative
impacts on the organisation in case of implementation of wrong strategy in order to enter a new
market. Further, the conclusion has been drawn about the evaluation of market in a proper way
with the help of which possible bad consequences could be removed and the decision of
establishment or not of the company could also be reviewed.

REFERENCES
Books and Journals
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Lee, S., Lee, S. and Joo, H. M., 2018. A cross-country analysis of Over-the-Top video market
growth: A panel data analysis.
Glowik, M., 2016. Market Entry Strategies: Internationalization Theories, Concepts and Cases
of Asian High-Technology Firms: Haier, Hon Hai Precision, Lenovo, LG Electronics,
Panasonic, Samsung, Sharp, Sony, TCL, Xiaomi. Walter de Gruyter GmbH & Co KG.
Evans, E. and et. al., 2016. Universal ideals in local realities: Online viewing in South Korea,
Brazil and India. Convergence. 22(4). pp.408-425.
Babanina, D., 2016. Creating a marketing channels strategy for European market entry: a case
study for eloSpaces Oy.
Lobato, R., 2019. Netflix nations: the geography of digital distribution. NYU Press.
Armstrong, G. M. and et. al., 2018. Marketing: an introduction. Pearson UK.
Online
Expansion Strategy. 2019. [Online]. Available Through:
<https://businessjargons.com/expansion-strategy.html>
Where is Netflix available?. 2019. [Online]. Available Through:
<https://help.netflix.com/en/node/14164>
How Netflix Expanded to 190 Countries in 7 Years. 2018. [Online]. Available Through:
<https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years>