Netflix's Business Model and Strategy
Added on 2020-03-02
15 Pages3886 Words65 Views
Leadership Management
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Running Head: Management Theory and Practice 1Strategic Management
Management Theory and Practice 2ContentsOverview..........................................................................................................................................3Institutional background..............................................................................................................3Theoretical concept of strategic management.................................................................................4Strategic management..................................................................................................................4Strategic management concepts...................................................................................................4Application an d Evaluation of the concept.....................................................................................6Strategic Intent.............................................................................................................................6Environmental scan......................................................................................................................6PEST analysis...........................................................................................................................6Porter’s five forces...................................................................................................................7SWOT analysis.........................................................................................................................9Strategy formulation..................................................................................................................10Reflection.......................................................................................................................................11Recommendations......................................................................................................................11References......................................................................................................................................13
Management Theory and Practice 3Overview The current time in the world is an age of strong competition where the effective strategies are important to achieve growth and success in the business operations. To compete at the global level, there is the need to adopt innovative strategies by the companies to carry out open management so that all the restrictions and barriers can be removed. The technology, marketing manufacturing, human resources and design departments of the company are getting more competitive resources than ever before. This report focuses on the on the role of the strategic management in the business operations of a company. For the discussion, the company Netflix has taken. In present time, the company is very famous in the market for its innovative strategies. The company Netflix has set up a successful example in the market in terms of innovative strategies. The strategy of the company is mainly focused on the continuous efforts towards internationalization. The aim of this report is to identify the theoretical concepts of the strategic management and evaluate the impact of the theoretical concepts of the strategic management on the business operations of the chosen company (Sherman, 2012). Institutional background The company Netflix was established in 1997 by Reed Hasting in California. In the starting of business, the company only provided online movies on rental basis but after launchingthe subscription services. The company also started to provide the facility of purchased rental movies to its consumers through the US postal services. In the upcoming years, the company improved its database and in current time, it is now offering the services of many DVDs with thedifferent title. Now, the company has large customers base with 4.4 million customers. Along with this, the company did partnership with many internet connected devices. With this partnership, the customers using the services of Netflix are also able to avail the services of company on the iPhone, iPad, laptops and other internet connected devices. The company y is operating in many countries i.e. USA, UK, Ireland, Canada, Carrabin and Latin America along with 23 million members in these countries. The strategy of Netflix is to enhance the subscription of the video streaming at the global level. To achieve this goal, the company is focused on providing good customers experience by expanding the video streaming services among the consumers (Ozer, 2011).
Management Theory and Practice 4Theoretical concept of strategic management Strategic management For identifying the theoretical concept of the strategic management, it is important to understand the strategic management first. Strategic management is about identifying and describing about the effective strategies that can be carried by managers within the organization to achieve high level of performance and competitive advantage in the market. The strategic management within an organization can be described as the collection of many actions and decisions by which managers can improve the organizations’ performance in the operating market. Manager in the organization should have proper knowledge of the competitive environment to take right decision. So, strategic management is the continuous and on-going process that analyzes and controls the overall business operations in the market in which the organization is involved. Along with this, strategic management is helpful in evaluating the competitors and the set objectives and strategies to meet all the requirements of the customers. Strategic management conceptsIn the highly competitive environment of business, the forecast-based planning methods or budget-oriented planning methods are not appropriate for the organizations to survive. The company must engaged in the strategic management concepts for defining and understanding theexternal and internal business environment to adopt effective strategy for the business. The concepts of strategic management are helpful in making adjustments to keep the business on track. The three basic strategic management concepts for the business are strategic intent, environmental scanning, and strategy formulation. Strategic intent-This concept of the strategic management is focused on the various corporate challenges and opportunities along with the long term objectives within the organization. The strategic intent provides significant direction to the company along with the sense of direction which can be communicated with the employees. Basically, it focuses on the upcoming opportunities for the business. Strategic intent provides a clear picture of the actions to grasp the opportunities in the market. It is helpful for the company to indentifying and focusing on the opportunities for thebetter business performance. So, it is basically impacting the organizations’ resources and core competencies to achieve the set goals in the competitive business environment (Hitt et al, 2009).
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