Theories of Internationalization and Modes of Entry into Global Markets: A Case Study of Netflix

International
Business781845686 (1)

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) Theories of internationalization and their impact on international business organisations.3
b) Application of theories of internationalization to Netflix..................................................4
c) Reasons for Netflix' expansion into international business operations..............................6
TASK 2............................................................................................................................................6
a) Different modes of entry into global markets....................................................................6
b) Examine the success of foreign expansion modes.............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals:..............................................................................................................10
Online:..................................................................................................................................10

INTRODUCTION
Nowadays, the whole world can be denoted as a “global village”. The organisation has
expanded their business and is no longer limited to the physical boundaries of the nation. Even
nations that were self-sufficient now highly dependent on other nations in order to create
transactions of goods and services. Also, they are willing to cater the same to developing nations.
International business defines the commercial activities that are not restricted to the geographical
limits of a nation (Arregle, Hitt and Mari, 2019). Thus, it encompasses not only the global
movement of services and goods but also the workforce, capital, intellectual property such as
trademarks, copyrights or patents, technology and so forth. This is a kind of business that
undertakes between two countries. The current report is based upon a case study of Netflix. It is
American production and subscription streaming service organisation that is started in 1997. It
provides a television or web series and film via distribution deals and its own manufactures,
named as Netflix Originals (Cannon and et.al., 2020). This report will discuss different theories
of internationalization while assessing their impact on global companies. It will also apply
internationalization theory to Netflix and elaborating the effectiveness of its global business
operations. Also, it will examine the reasons for Netflix's expansion into global business
operations. Later, it will outline different modes of entry into international markets, with its
merits and demerits. It will also highlight the attainment of overseas expansion modes used by
Netflix and Amazon Prime.
TASK 1
a) Theories of internationalization.
The Uppsala internationalization model:
This model of internationalisation was introduced by Johanson and Weidershiem, 1975
and Johanson Vahlne, 1977. This model signifies how organisation set about the process of
internationalization. It shows a sequential approach, meaning that the company globalises
incrementally. As per the viewpoint of this model, it says that there is limitation of knowledge of
international market which is damaging to globalization (Håkanson, 2021). Hence, it signifies
that the organisation should priorly establishes itself in its local or home market and then moves
forward to its resources and commitment in the aimed international place in phases, advancing to
the next phase once enough acknowledgement and knowledge of the international marketplace