Business Strategy Analysis: Netflix's Strategic Position and Future

This report provides a comprehensive analysis of Netflix's business-level strategy, focusing on its strategic positioning and future prospects. The analysis begins by placing Netflix on Bowman's strategic clock, highlighting its differentiation strategy in the competitive market. It then employs the Ansoff Matrix to examine Netflix's strategies, including product development, market penetration, diversification, and market development, illustrating how these strategies are executed. The report also determines the parental role of Netflix's top management, identifying its role as a developer, and explores its international strategies, including its expansion into various global markets. Finally, the report concludes with an assessment of Netflix's position to face future challenges and opportunities, based on its current strategies and business model.

BUSINESS LEVEL STRATEGY

NETFLIX 1
Strategic Position
1 Space Technologies. What Does Make Netflix So Popular? Check Out 3 Winning Strategies
Behind The Exponential Growth of Netflix App, 2018.
https://www.spaceotechnologies.com/movie-streaming-apps-development-strategies-netflix-
startups/
2 Rachelle Samson, The business strategy of Netflix. 2018.
https://www.profolus.com/topics/the-business-strategy-of-netflix/
BOWMAN’S STRATEGIC CLOCK : Differentiation/
Focused Differentiation
Netflix adopts the differentiation strategy in order to compete
with the other competitors in the market. It is leading internet
subscription services that provide the entertainment to
consumers such as TV shows and movies in the world. It came
with the new ideas and services in the market such as web
series and many others. It introduces the series with the new
concept to attract the users.

NETFLIX 2
Ansoff Matrix:
Strategies Execution
Product development
It has been seen that the Netflix provides the
new services with the same streaming
services such as Narcos, Orange in the new
black, and Black Mirror.
It provides the video and computer games for
entertainment.
Developing new product with the existing
internet services and brand value.
Market Penetration
Users purchase more and uses the existing
services across all the services categories of
Netflix
Exiting services provided with the high
quality
Diversification
Online series with the all episodes in a time
diversify the services of the website. Online
series and movies is a different concepts of
series as compare to the others.
New concepts and theories
Different from the others
Market development
It has been seen that North America is an
optimum market such as Canada and the
Expansion
1 Space Technologies. What Does Make Netflix So Popular? Check Out 3 Winning Strategies
Behind The Exponential Growth of Netflix App, 2018.
https://www.spaceotechnologies.com/movie-streaming-apps-development-strategies-netflix-
startups/
2 Rachelle Samson, The business strategy of Netflix. 2018.
https://www.profolus.com/topics/the-business-strategy-of-netflix/

NETFLIX 3
other countries such as Mexico, Chile and
Brazil.
It also expanded the business at the
international level such as U.K. Australia and
India.
Spreading networks in different locations
Parental Role
Developer role
 The Netflix break all the records and became the known movie streaming application.
It created the buzz in the people for its online video streaming. The craze of these
videos cannot be easily faded1.
 The other development of Netflix is its video distribution services. It is one of the
largest media distribution companies across the world.
 It develops the online platform in the world by providing the services to users such as
popular TV shows.
 The video content of the company is in the high quality as per its maintenance.
International strategies
It is observed that it operates in 190 countries to reach at the online-based global target
market. It operates in different regions of the world by using the server strategically.
Global Relations
1 Space Technologies. What Does Make Netflix So Popular? Check Out 3 Winning Strategies
Behind The Exponential Growth of Netflix App, 2018.
https://www.spaceotechnologies.com/movie-streaming-apps-development-strategies-netflix-
startups/
2 Rachelle Samson, The business strategy of Netflix. 2018.
https://www.profolus.com/topics/the-business-strategy-of-netflix/

NETFLIX 4
It is observed that the Netflix uses the cloud computing platform of Amazon Web Services. It
is a very cost-effective strategy and also it is also available at the global level as per its
computing capacity. It is easy for the company to spread its services in the different locations
across the globe. This strategy also helps to reduce the risks that come in the network and
bandwidth traffic2.
Conclusion
From the above limelight discussion, it has been concluded that the company is in a good
position and can achieve the high growth in the future. As per the analysis, it is observed the
international strategy helps to grow in the different countries. It plays the developer role in
the market by developing the new products and services.
1 Space Technologies. What Does Make Netflix So Popular? Check Out 3 Winning Strategies
Behind The Exponential Growth of Netflix App, 2018.
https://www.spaceotechnologies.com/movie-streaming-apps-development-strategies-netflix-
startups/
2 Rachelle Samson, The business strategy of Netflix. 2018.
https://www.profolus.com/topics/the-business-strategy-of-netflix/