Analyzing Operations Management in Tech Companies: A Study on Netflix versus Amazon

This research proposal aims to analyze the contrast and connection between the operations management as tech companies, specifically Netflix and Amazon. It includes literature review, research methodology, and SWOT analysis.

Research proposal

Table of Contents
Introduction......................................................................................................................................3
Background to the organisation:......................................................................................................3
Aim and objectives:.........................................................................................................................3
Rationale for selecting the topic:.....................................................................................................4
Literature review:.............................................................................................................................4
Research methodology:..................................................................................................................12
References......................................................................................................................................14

Introduction
Tech operations are the simple framework that is based on system, people, technology
that is related to the organisation. Operations are helping business organisations to drive the
value for customer and business. It is helping business organisations to optimise the work and
value that is required for the purpose of maximization of present customer satisfaction level. The
present dissertation proposal is based on analysing the way operations management that can help
in the purpose of analysing the perspective of operations management by comparing it in two
organisations that is Amazon and Netflix (Dias and Navarro, 2018). For this purpose different
frameworks and models will be applied to analyse and achieve the overall laid aims and
objectives. There will be application of secondary sources of information for the purpose of
collecting relevant information and data to reach to relevant recommendation and conclusions.
Background to the organisation:
Netflix: Netflix is a top content platform having its headquarters in California. It is a
subscription based streaming service provider organisation offering online streaming from
library of television series and films. It produces original series and has also played a prominent
role in the process of independent film distribution. It expanded its business in year 2007 with
introduction of streaming media and entered content production industry in year 2013.
Amazon: Amazon is a multinational brand that is focussed on cloud computing, artificial
intelligence and digital streaming (Rataul, Tisch and Zámborský, 2018). It is one of the big five
brands across united states and information technology industry along with Facebook. Apple,
google, Microsoft. It stated as a online marketplace but expanded to sell software, apparel,
jewellery, games, toys and food. It is well known for worlds largest online marketplace and
cloud computing platform as per market and revenue capitalisation.
Aim and objectives:
Aim:"To analyse the contrast and connection between the operations management as tech
companies." A study on Netflix versus Amazon
Objectives:
 To apply different frameworks related to overall competition in the market system and
the way organisation can stay relevant.

 To evaluate various marketing structures to from earliest forms to present day.
 To formulate different leadership styles and the way customer satisfaction can be
maximised.
Research questions:
 what are the different frameworks related to overall competition in the market system
and the way organisation can stay relevant?
 What are various marketing structures to from earliest forms to present day adopted in
Netflix and amazon?
 Identify the different leadership styles and the way customer satisfaction can be
maximised?
Rationale for selecting the topic:
The main aim of selecting this topic is to understand the way different operations are
being managed in organisation. The research work will assist in the process of enhancing the
communication and researching skills that is very important for the purpose of future
professional development. The collected information as per specific requirement of the research
work is going to help researcher in having sufficient information base to achieve the overall laid
aims and objectives.
Literature review:
Different frameworks related to overall competition in the market system and the way
organisation can stay relevant
The connection and contrast between their operations management as tech companies.
(Amazon Prime Video and Netflix)
Connection between Amazon Prime Video and Netflix are as follows:
 Amazon Prime Video and Netflix are United States based and hence they have originated
from the same country. This makes their place of origin similar.
 Both the companies are providing access to movies or TV shows of different genres with
the help of online streaming OTT (over the top) platforms.

 The target audience of Amazon Prime Video and Netflix is also the same. That is why
they are called strong competitors in the marketplace.
 Also, both the companies are charging a monetary amount as their subscription or
membership fees to get the access over there platforms.
Contrast between Amazon Prime Video and Netflix are as follows:Basis
Basis Amazon Prime Video Netflix
 Entry in the market
 Device Support
 Membership Cost
 Support to gaming
consoles
Fairly new in market, hence it
is not having extensive range
of content.
Relatively less devices
support.
It is comparatively lesser than
Netflix.
It does not support gaming
consoles.
Having huge and extensive
range of content.
More devices support this
platform.
It has a higher membership
cost than Amazon.
It supports a wide range of
gaming consoles.
SWOT analysis:
Netflix Amazon
Strength Netflix is having a strong
brand reputation that has
depicted exponential growth in
recent years (Lee and et.al.,
2019). It is having a high
global presence and offers
ample opportunities to budding
film makers.
Amazon is having higher
brand value and a string
market position.
Amazon is a market leader
they are also having advance
distribution and logistics
strategies.

weakness Netflix is a limited copyright
that tolls up on their revenue.
Netflix lacks customer care
executives that may harm the
customer satisfaction.
Amazon is focussing on north
American markets its
emerging market have been
acquired by its competitors.
There is loss of revenue in
some areas such as ion
shipping aspects.
Many times amazon position
in terms of customer safety
and security is also questioned
because of higher external
risks arsing because of
violation of security policies.
Opportunities Netflix can expand its market
share with the enhancing
demand of OTT platforms.
Netflix is already having a
global presence the can further
strengthen theirs base by
formation of strategic
partnership base with local
markets to capture higher
market share (Jørgensen and
Pedersen, 2018).
Amazon can develop its
market presence in emerging
markets by adoption of
technology penetration ad
enhancement in Internet
access.
Amazon can focus on
improvement of eco system.
The development of amazon
app store can help in
acquisition of higher market
share.
threats Covid 19 situation has affected
the reproduction of original
movies and shows, Netflix is
affected by the pandemic
situation.
There is aggressive
competition that may affect the
competitive position of
amazon. The innovation and
strategic partnership may

There are government
regulations that is preventing
them from further expansion
(Yan,, 2017).
threaten the present market
share of Amazon.
There is continuous
cybersecurity threat that may
continue its strategy and
operations in the market.
Netflix Amazon
Bargaining power of suppliers There is high influence of
bargaining power of suppliers
that posses impact on the
pricing policies. Suppliers
posses a edge and there is high
bargaining power because
Netflix is competing against
traditional media distributors
so there is need for higher
flexibility to deal with high
bargaining power of suppliers
(Jenner, 2018).
Suppliers may also influence
the decision making industry.
A organisation is depended on
large base of suppliers. There
is higher influence of suppliers
on e commerce business.
Bargaining power of
customers
In present situation customers
posses high bargaining power
over other service providers.
There is high bargaining
power of customers as they
posses lower switching cost
that provides them with option
to cancel their subscription and
switch to other media
providers that leads to high
Amazon lays emphasis on
enhancing the customer
satisfaction level and offering
higher value. For this they are
using customer centric
approach in terms of offering
their services.

bargaining power of customers
in long run.
Competitive rivalry The entertain and media
industry is having intense
competition level that is
leading to high pressure on
organisations like Netflix to
retain their existing customer
base (Weill and Woerner,
2018).
Amazon is having a higher
competitive advantage but the
number of players that are part
of the media industry has
increased with time. Major
competitor brands of amazon
includes alibaba, walmart, flip
kart, e bay and many others
that are offering intense
competition to Amazon. There
is lower switching cost and
readily available of substitutes
is leading to high pressure on
amazon as they can easily
transfer from one retail brand
to another at low cost.
Threat of new entrants For Netflix there is threat of
new entrants at moderate level
that is created because of fast
evolving technology. It leads
to more opportunities where
new entrants can easily enter
the industry.
In Amazon the overall threat
of new entrants is low. There
is low switching cost, higher
economies of scale and better
customer loyalty. All these
aspects are leading to a low
threat of new entrants for
Amazon.
Threat of substitution There is moderate level of
threat of substitution. Netflix
faces threat from other sources
of leisure activities and
Amazon is having high threat
of substitution. The biggest
reason for it is the low
switching cost as customer can

entertainment sources. To deal
with the high threat of
substitution Netflix has to
work towards updating the
content library by addition of
movies, TV shows.
easily switch from one brand
to another.
Competitive nature for Netflix and Amazon
As per view points of Lee (2021), the competition nature of Netflix is that this brand is
ruling the streaming services. They are having 207.6 million paid subscribers about 67 million
united states. Netflix is dominating the streaming market despite of the subscription becoming
expensive Netflix has been successfully able to attract viewers (Pettersen and Krumsvik, 2019).
Netflix is one of the biggest competitive brands of amazon prime that is a subscription based
media streaming sector. Netflix is having a high market share that is in terms of media streaming
that is 26.6 percent that is high as compared to amazon prime video with a traffic of 5.7 percent.
Both prime video and Netflix are offering services in international and domestic market that is
offering third party content. Netflix is one of the most popular brands in the streaming sector and
is also well known for exclusive content (Who are Amazon's Competitors?, 2020).
Management operations at Netflix:
In Netflix the organisational structure is hierarchical with businesses flexibility and
responsiveness to the changes in global market. With the corporate structure the organisation is
working towards

(source: Netflix Inc.’s Organizational Structure & Its Strategic Implications, 2020)
evolvement of original entertainment and on demand streaming services that can help in
attracting target customers across different parts of the world.

The organisational structure in Netflix is manifestation of the organisational design elements that
posses a influence on business function components. There are functional divisions based on
various functional areas that is human resource management, geographical division that enables
strategic management specific to regional market needs.
Management operations at Amazon:
Amazon expanded its e commerce business having a combination of localisation and
standardisation. They are catering to various multiple international locations. There is
standardised of operational activities at amazon that is offering services in consistent manner
across different markets (Graham and et.al., 2019). Amazon is presently having a robust supply
chain that is highly efficient and delivering services by dependence on third party logistics.
Their Marketing structures (Transition from (old) earliest forms to present day digital
marketing techniques)
Amazon: Amazon has always believed in having a engaged and thriving community even before
there was advent of social media. Now presently this brand is utilising various platforms like
Pinterest, Twitter, Facebook for the purpose of promoting its product across plethora of social
channels and for facilitating engagement, conversation and discovery for its million followers.
There is complete transformation of the way digital marketing techniques are now used by
various e commerce sites (Berg and Knights, 2019). Such as:
Facebook: Amazon is presently having 28.7 million likes on their Facebook page. They are
offering useful information that is adding to human touch by addressing of comments.
Twitter: Amazon is also using various campaigns that is driving their 2.7 million followers to
additional services like Prime video and amazon music. Amazon is also working towards using
of blog content. It is a platform that is used for content market rather than driving the process of
sales direct.
Pinterest: Pinterest is adopted by amazon as a extension of its online store. It is a social media
site that is used by significant percentage of users to browse through the purchase ideas.
Netflix:

Netflix is working towards using digital marketing strategy that is based on wide variety of
marketing campaigns, opportunities and social media posts. Netflix social media team is using it
for grabbing attention. It is based on a strategic and creative approach.
Personalisation: Netflix is working towards using high amount of enhancement with
personalised interface (Ranta, Aarikka-Stenroos and Mäkinen, 2018). The content at home page
is made completely personalised, Netflix also provides various suggestions based on the
information.
Humour in advertising:
Keeping with latest: Netflix is also using snap-chat and Instagram that is demonstrating the
success across multiple social media channels at a particular point of time. It is leading digital
entrainment services to engage the target audience and enable the customer retention process.
Different leadership styles and the way customer satisfaction can be maximised.
Their Leadership styles
Netflix: As per view points of Hal Koss (2021), Reef hastings is a American entrepreneur and
the present CEO of media rental service Netflix. Reed hastings is using transformational
leadership, reciprocity and creative intelligence that is for deserving their leadership abilities.
The main leadership approach that is used is related to formal reviews, travel policies, personal
time off and compensation packages far from the main stream. Hastings as a leader believes that
there is need for a autonomic driven work environment. It can help in reinventing of human
resource policies that can help in having creative intelligence process and transformational
leadership abilities (7 Leadership Lessons From Netflix CEO Reed Hastings’ New Book, 2020).
Amazon: Amazon is working towards using transformational leadership style as a task oriented
leader. For the purpose of transforming the organisation Bezos is working towards using some
innovation ways. The main leadership qualities involves having long term goals. String
communication skills (Jeff Bezos Leadership Style, 2021).
Customers satisfaction
Amazon:
The score of customers satisfaction in amazon in year 2020 was 79 out of 100 ASCI Points.
Amazon is having a customer centric culture that is foregoing short term profits for long term

investments for improving customer experiences and long term dividends. CEO is working
towards thanking their customer every year for the kind of awards (Amazon ranks No. 1 in
customer satisfaction, 2020).
Netflix:
the customer satisfaction level with Netflix scoring at 79 index points. There are some of the
differentiation aspects that are offered by Netflix that is resulting into higher satisfaction level of
their customers (Aagaard, Aagaard and Harrison, 2019). Such as there is high amount of
personalisation, Netflix has identified 2000 taste communities that is cluster of people who
posses same content preferences. It is keeping their customers engaged, satisfied and offering
them with higher satisfaction level.
Their performance and rewards (staff)
amazon:
Amazon is ranked at number 2 as per the newly released worlds best employers 2020 list.
Amazon employees across different parts of the world are doing a meaningful work and ensure
that that they can offer the services as per their customer preferences. They are also offering
recognition to employees based on their level of performance and contribution that they are
making.
Netflix:
Netflix is focused on employee implemented that is best explained culture deck with context not
control. Managers at Netflix are working towards offering all the facilities to employees so that
they are able to make well informed decisions. This freedom has benefited self management and
autonomy that is proving to be creator of greater well being and job satisfaction for employees
that improves their performance level (Netflix CEO Embraces 'No Rules,' But Work Is Anything
But Chill, 2020).
Research methodology:
Overview of research methodology:
In the present research work there will be application of secondary form of data. In this
there will be use of existing sources of information for the purpose of collecting the information
from identified sources of journal, online, books and other sources. It is based on having
qualitative form of information for the purpose of analysing the data and further achieving the

laid aims and objectives. There will be use of questionnaire as a primary method of collecting
information so that there is presence of sufficient information base. It is based on having
information from the employees who are presently working in Netflix and amazon.
Primary data: Primary data is regarded as the first hand information that is collected by the
researcher. It is a real data that involves collection of information from observation, surveys,
questionnaires, personal interview methods. In the present research work there is use of
questionnaire as a method to collect the necessary required information.
Secondary method: In this method there is collection of data from exiting sources. It is a quick
process as it is easy to collect the information from existing sources. In present report there is
preparation of literature review that is based on information collected from books, journal
articles government publications or internal records depending on the requirement of
information.
Quantitative method: In this method there is collection of numerical form of information that is
descriptive in nature. It is a method in which there is use of quantitative information.
Qualitative research method: It is a method in which non numerical information is collected by
the research. In this method data and information can be collected through observation,
interviews and focus groups by application of some methods.
Mixed method: It is a method in which there is application of both quantitative and qualitative
form of information in the context of research.
In the present research work there will be use of both qualitative and quantitative form of method
for the purpose of collecting the necessary required information for the purpose of further
analysing it to achieve the laid aims and objectives of the report.
Sampling: It is a method in which there is predetermined observations that are selected from a
large population. It is a methodology that is depending on the type of analysis to be performed.
Such as there are two common methods of sampling that includes simple random sampling and
systematic sampling. There will be a sample size of 30 respondents who will be taken into
consideration it will involves employees who are presently working in amazon and Netflix. It is
going to have relevant first hand information with respect to analysing the different range of
aspect.

References
Books and Journal
Dias, M. and Navarro, R., 2018. Is Netflix Dominating Brazil. International Journal of Business
and Management Review, 6(1), pp.19-32.
Rataul, P., Tisch, D.G. and Zámborský, P., 2018. Netflix: Dynamic capabilities for global
success. SAGE Publications: SAGE Business Cases Originals.
Lee and et.al., 2019. Emerging technology and business model innovation: the case of artificial
intelligence. Journal of Open Innovation: Technology, Market, and Complexity, 5(3), p.44.
Jørgensen, S. and Pedersen, L.J.T., 2018. RESTART sustainable business model innovation (p.
253). Springer Nature.
Weill, P. and Woerner, S., 2018. What's your digital business model?: six questions to help you
build the next-generation enterprise. Harvard Business Press.
Jenner, M., 2018. Netflix and the Re-invention of Television. Springer.
Yan, J., 2017. Identifying Online Streaming User Value in the Netflix Recommendation System.
Drexel University.
Pettersen, L. and Krumsvik, A.H., 2019. Rocking the boat: Proposing a participatory business
model for news. The Journal of Media Innovations.
Graham and et.al., 2019. How to run a city like Amazon, and other fables. Meatspace Press.
Berg, N. and Knights, M., 2019. Amazon: How the world’s most relentless retailer will continue
to revolutionize commerce. Kogan Page Publishers.
Aagaard, A., Aagaard, A. and Harrison, 2019. Digital Business Models. Cham: Springer
International Publishing.
Ranta, V., Aarikka-Stenroos, L. and Mäkinen, S.J., 2018. Creating value in the circular
economy: A structured multiple-case analysis of business models. Journal of cleaner
production, 201, pp.988-1000.
Online
7 Leadership Lessons From Netflix CEO Reed Hastings’ New Book, 2020 [online], Available
through<https://builtin.com/company-culture/netflix-book>
Jeff Bezos Leadership Style, 2021 [online], Available
through<https://financhill.com/blog/investing/jeff-bezos-leadership-style>
Amazon ranks No. 1 in customer satisfaction, 2020 [online], Available
through<https://www.retaildive.com/ex/mobilecommercedaily/amazon-ranks-no-1-in-customer-
satisfaction>

Netflix CEO Embraces 'No Rules,' But Work Is Anything But Chill, 2020 [online], Available
through<https://www.npr.org/2020/09/15/912917612/netflix-ceo-embraces-no-rules-but-work-
is-anything-but-chill>
Netflix Inc.’s Organizational Structure & Its Strategic Implications, 2020 [online], Available
through<https://www.rancord.org/netflix-organizational-structure-design-organizational-chart-
characteristics>
Who are Amazon's Competitors?, 2020 [online], Available
through<https://penmypaper.com/knowledge-base/amazon-competitors>