Netflix: Strategic Evaluation of Market Development for Expansion

This report provides a comprehensive evaluation of Netflix's market development strategy, focusing on its suitability, acceptability, and feasibility for expansion into new international markets. The analysis examines the company's approach to online content delivery and its ability to target new customer segments, considering market trends and competitive landscapes. The report assesses the strategy's potential in various countries, including France, Germany, and the Netherlands, evaluating the associated risks, returns, and stakeholder reactions. Furthermore, it explores the internal strengths and weaknesses of Netflix, considering financial resources, employee skills, and brand power. The conclusion highlights the importance of managing existing operations and enhancing business operations through the new market development strategy, recommending the use of PESTLE and SWOT analyses to manage threats and capitalize on opportunities in the competitive market.

TASK 7 STRATEGY EVALUATION
Market development as a strategy is suitable for Netflix as through this enterprise can
easily target new market which is fruitful for business in every possible manner. Further,
organization has taken decision to offer its products online and this is feasible as market trend is
changing at faster pace where majority of the customers prefer to shop online rather than through
physical store. Apart from this, the option selected is appropriate for business also through online
selling different geographical regions can be targeted easily (Pickett, 2010). Suitability can be
seen in the form of coverage where through online platform firm can easily enhance its customer
base. Acceptability of this strategy can be seen from the market trend where every hospitality
organization has started to adopt online tools for offering their products in the market. This has
supported in dealing with the issue of rise in competition level.
Suitability
In context to suitability of the strategy proposed to the management of netfix will help the
entire course of business functioning to move from one platform to another. However, market
development strategy will assist the top level management Netflix to grab the external
opportunities like targeting new market segment, attracting more number of customers etc
(Satava, Caldwell and Richards, 2006). Moreover, it develops suitable platform through the help
of which threats and obstacles can be minimized. In addition to it, market development tactic for
Netflix will assist in building internal strengths such as enhancing motivation level within the
workforce, encourage optimum utilization of available resources and also mould the functioning
in such manner that it avoids loopholes and enhance the overall performance of business
enterprise. Apart from all the major suitability of this strategy is that it will enhance the overall
services offered by the company to its customers. Through the means of this management can
improve the overall satisfaction level of the target audience and influence them to book their
tickets from the website.
(Source: The Impact of Online Content on European Tourism. 2013.)
By the means of above illustration it can be evaluated that, social media and other
internet sites are becoming favorites in terms of generating or gathering information about the
travel and tourism sector.
Countr opportunities threat Comments

ies
France Provide a concoction of
Hollywood films and TV
broadcast in the new
marketplace and plan to
consider its personal primary
entertainment. For example:
House of Cards.
France is third in broadband
family connection in Europe.
tangled set of rules on when films
can be discharged in various data
format. The rules forbid a movie
from attendance on every month
payment on video service until
three years after its first
appearance in theaters, though it
can be rented through a set-top
box four months after its first
performance.
After seeing the
opportunity and
threat
shareholders are
ready to invest
in the company
in France.
Germa
ny
Netflix may be able to
triumph over customers by
providing them with low
monthly fixed charge.
Germany has overflowing
amount of broadband
households in Europe that is
about 29.1 million
does not have sole rights to all its
personal shows.
competing with different video
flowing services, such as Canal
Play, (VIV.PA) Infinity of
Vivendi's, Amazon.com Inc's
(AMZN.O) , as well as Canal
Plus in France. First Fast Video
and ProSiebenSat1's Maxdome in
Germany.
After the
opportunity and
threat
shareholders are
finding it
profitable to
invest in the
company.
Nether
land
Netflix presently has 48
million clients for its monthly
payment service in more than
40 nations, with 35.7 million
in the United States.
The reimbursement of launching
in the brand-new marketplace
will support the Netflix's global
unit at a failure, the company
aforesaid in a document to
In Netherland
shareholder are
moderately
interested in
investing in the

shareholders in April. The
organization last month rumored
a quarterly loss of $35 million for
the portion, less than half of what
it was a year before (Richwine
and Bartunek, 2014).
company.
Acceptability:
There are certain corporate aim and objectives for which every company irrespective to their
sector makes valiant efforts or undertake take different strategies and tactics to meet. In the
present case, acceptability of market development strategy of Netflix is focused. It is the duty of
senior managers of cited company to make sure that developed strategy meet the expectations of
each stakeholders. Along with this, constantly increasing the use of internet and above stated
illustration defines that people are making more use of online sites and social media in gathering
information regarding travel and tourism (Söderholm and Norrbin, 2013). Acceptability of the
strategy is based on three major factor return, risks and reaction of stakeholder. On the basis of
increasing use of internet, trip advisor will generate higher return by the means of providing the
platform. Along within this, developing new market will possess certain risks and uncertainties,
but with increasing return risk will minimize and cited firm will generate higher returns.
Country Risks Return Reaction
France The main risk has
raised form the local
film makers as they
are complaining that
Netflix is engaging in
fiscal dumping by
establishing its base
in Amsterdam
(Lapowsky, 2014).
By the means of
entering into
market, Netflix can
more than 4 to 6
million users
(Carvajal, 2014).
Stakeholders of the
firm are getting
interested into the
expansion in the
country as they are
looking the increasing
numbers of users.
Germany Existence of
Deutsche Telekom
could force the
It is the fourth
largest broadband
market in the world
Considering the
revenues, stakeholders
are happy in investing

company to pay for
preferential access
down the line.
thus, company is
expecting the return
of $1.1 billion in
2017 (Sharma,
2014).
in such a competitive
environment.
Netherlands High competition in
broadband industry
has led several risks
for the companies.
Constantly
increasing
popularity of series
like House of Cards
(Blake, 2013).
Netflix can raise
large number of
users in the
country.
Stakeholders have
announced the
international
expansion by entering
into Netherlands.
Feasibility: The feasibility of strategy can be judged from the prevailing financial sources, skills
of employees, competency level as well as brand power. It is quite clear that Netflix has a
presence of ample financial resource’s which may help in implementation of financial strategy.
The employees are skilled enough to handle varied areas of firm. Hence strategy implementation
will not be a big issue for the company. Netflix has undergone a major brand transformation. But
it is also true that the change has not been in a good way. The company has moved from being
from a trendy, convenient video provider to a bumbling, greedy, corporate entity. The
significance of change is clear from canceled subscriptions. Hence the brand power of firm is not
good.

Countries Strength Weakness
France What is amazing with Netflix
is its technical and marketing
qualities
Insusceptible french public
defendant Netflix of “financial
dumping by intentionally avoiding
localized taxes cashed by domestic
television channels and streaming
services.
service will face rivalry from French
challenger such as the country's prima
pay TV operator, Canal+, and
Numericable, whose streaming service
also establish today.
Germany streaming market is constantly
flourishing
While consumers' curiosity in
streaming may grow up
automatically with the times,
While Americans already use their
expenses more than 9 euros per capita
per year on video via Cyberspace,
Germans only use a part of their
expense that is 1.60 euro.
Netflix's digital aiding stays
comparatively slender.
The trade with Virgin
Netflix’s introductory with a
pay to TV operator aid forcing
Netflix shares to an all-time
flooding Tuesday. Netflix
closed at $313.06, up 6.4% for
the solar day, providing the
company a marketplace
headgear of about $18.5
billion.
the Dutch have unbelievable
broadband, but till today they
have not been capable to take
inundated benefit of their fast
connections. Now the
localized people in the
Netherlands can subscribe to
Netflix and immediately
watch bang-up TV shows and
movies anyplace, anytime, for
one low price for each
Netflix Netherlands user interface is
difficult to navigate and one cannot see
a complete database of what they
provide.

month.”
TASK 8 CONCLUSION AND RECOMMENDATION
Netflix has always focused on making sure that services given by them are able to
generate customer’s satisfaction. This is with respect to making sure that on-demand Internet
streaming media available is available to them. It has further been found that strength of
company lies in its online presence and its business in many nations. The company can thus
make most of ts strengths by diversifying its business in the nations where it has shown its
presence. It can further make use of retrenching so as to keep its brand vital and keeping profit
levels high. In order to capitalize on opportunities there is a need to focus on top level
management of the company. In order to manage their threats, the company can take help of
Pestle and Swot analysis. The company is presently operating in such a competitive market.
Hence requirement is to manage existing operations as well as focus on enhancing business
operations through the help of new market development strategy.

Pickett, H.H.P., 2010. The Internal Auditing Handbook. John Wiley & Sons.
Satava, D., Caldwell, C. and Richards, L., 2006. Ethics and the auditing culture: Rethinking the
foundation of accounting and auditing. Journal of Business Ethics. 64(3). 271-284.
Söderholm, P. and Norrbin, P., 2013. Risk-based dependability approach to maintenance
performance measurement. Journal of Quality in Maintenance Engineering. 19(3). Pp.
316–329.
Tchankova, L., 2002. Risk identification – basic stage in risk management. Environmental
Management and Health. 13 (3). pp.290 – 297.
The Impact of Online Content on European Tourism. 2013. [Online]. Available through
http://sete.gr/_fileuploads/entries/Online%20library/GR/131204_The%20Impact%20of
%20Online%20Content%20on%20European%20Tourism.pdf
Lapowsky, I., 2014. Netflix Faces Tough Battles in Its Push to Rule Europe. [Online]. Available
through: <http://www.wired.com/2014/09/netflix-europe/>. [Accessed on 10th December
2015].
Sharma, A., 2014. Netflix to Expand to France, Germany Later This Year. [Online]. Available
through:<http://www.wsj.com/articles/SB10001424052702304198504579575132479215
494>. [Accessed on 10th December 2015].
Carvajal, D., 2014. Europeans Bracing for Netflix. [Online]. Available through:
<http://www.nytimes.com/2014/09/13/business/media/europeans-bracing-for-
netflix.html?_r=0>. [Accessed on 10th December 2015].
Blake, M., 2013. Netflix to launch in six more European countries this year. [Online]. Available
through: <http://www.reuters.com/article/us-netflix-europe-
idUSBREA4K03D20140521#SiCADlicppdtFws8.97>. [Accessed on 10th December
2015].
Richwine, L. and Bartunek, R., 2014. Netflix to launch in six more European countries this year.
[Online]. Available through: <http://www.reuters.com/article/us-netflix-europe-
idUSBREA4K03D20140521#AFUktZVROeCkEZ7P.99>. [Accessed on 10th December
2015].