Strategic Management: Competitive Advantages of Netflix

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STRATEGIC MANAGEMENT
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Executive Summary
The focus on the Netflix competitive advantages based on the Diamond Framework. Netflix as
an industry has produced online rental products that enable them to have a fair share of the world
marketplaces. The market contributes Their success by making the services available and in
many ways possible. As Porter (2011) says, it all along within the marketing price, saturation,
and content, clearly they separate themselves from rivals. It is with their membership of pricing
scheme that seduces the customers, and such an approach has contributed to them, thus
becoming market leaders. However, Netflix has faced many challenges surrounding their recent
decisions online streaming service coupled with an increase in price. This report reviews and
compares the theories referring to Netflix and other rivals of the competitive advantage of a
radical approach by Porter (2011). Although Porter’s Diamond Framework has been extensively
discussed in the management literature. The purpose of this report is to explain why Porter's
Diamond Framework is not a new theory that explains the competitiveness of countries but
rather a framework that enhances our understanding of the international competitiveness of
firms.
Keywords: Porter, Diamond Framework, competitive advantages,

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Netflix Strategic management
Introduction
Numerous competitive advantages are seen to be narrow by the managers in the area of the
rivalry. According to (Porter, and Heppelmann, 2014) some Companies rely on the competition
in the existing sector is what drives the profitability in certainty. There are specific forces such as
Customers and supplier have a bargaining power, whereby it may pose future threats, and such
treats may substitute the sales of the product/services. Netflix Company rivals in the digital
content industry with different types of competitors, where customers would rather pay less
money for the subscription for the services (Carroll, Menenberg, and Kwok, 2009). The industry
would like to be paid more for a lesser amount of work. And the current digital providers are
following the business model to make services to a similar product.
Endowment Factor
Netflix Company has competitive advantages in the trade(David, and David, 2013), where they
have exploited the production for a long time due to entrepreneurship, capital, and labor. Michael
E. Porter a professor in Harvard Business, a developer of ‘Porter Diamond theory framework'
advocates that, "the competition and profitability is driven by the structure of the industry, not
whether the manufacturing produces high tech or low tech, regulated or unregulated, is emerging
or mature" (Porter, 2011). The Netflix employees are paid well than other digital content
developers such as Hulu/Amazon. Porter says they also allow the employees to decide on the
expense without the managerial concern as long as Netflix interest first. Netflix does not rely on
the common sense and judgment instead of the formal policies, which would get better
outcomes, and at a low fee. In the concern of entrepreneurship and capital, 2018 Netflix roughly