Netflix's Strategic Management: Positioning for Market Dominance

This essay provides a comprehensive analysis of Netflix's strategic positioning within the competitive streaming market. It identifies and examines the various positioning strategies employed by Netflix, including 'against the competitor,' 'away from the competitor,' and the 'benefit' strategy. The analysis highlights how Netflix leverages its superior selection options, premium pricing, and personalized recommendation systems to differentiate itself from competitors like Amazon, Hulu, and Redbox. The essay also discusses the benefits of Netflix's compatibility with multiple multimedia devices, enhancing customer convenience and market reach. Ultimately, the study concludes that Netflix's strategic positioning as a premium service with a high degree of personalization is crucial for maintaining a distinctive image and competitive edge in the face of intense market rivalry. Desklib offers a variety of solved assignments and past papers for students.

Running head: STRATEGIC MANAGEMENT
Strategic management
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Among the given positioning strategies, Netflix involves different strategies in order to
have multiple benefits in the market and to provide holistic user experience to the customers.
Higher convenience and selection options
Amazon Netflix
Hulu
Low price and personalization price and personalization
Redbox
Comcast
Lower convenience and selection options
Figure: 1 Positioning map of Netflix
According to the above figure, it is being seen that the positioning of Netflix is placed in
the different location compared to its competitors. One of the positioning strategies being
initiated by them is the “against the competitor”. This strategy is being initiated by the Netflix
due to market their services by positioning it as superior to the competitors. Netflix the
maximum options for selection compared to their competitors. Thus, in marketing and
positioning their services, they communicate the availability of more selection items than to the

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potential customers (Curtis, 2017). In this area they are superior to others. Another strategy being
initiated by them is the “away from the competitor”. Initiation of this strategy helped Netflix to
create distinctive image in the market among the competitors. In order to stay unique in the
competition, Netflix have opted for premium pricing compared to their competitors (Griffin,
2017). Netflix charge more price from their customers compared to other players in the market.
Thus, it helps them to target and operate in segment different from their competitors. It helped
them to reduce the rate of competition and enhance the premium feel and exclusivity of the
brand. Premium pricing will also help them to target the customers from the top of the pyramid
more effectively.
The last positioning strategy being used by them is the “benefit” strategy. According to
this strategy, Netflix position their service by focusing only on the added benefits that they
provide to their customers compared to their competitors. This benefit is the personalization or
recommendation option given to the customers. In recommending and suggesting media to the
customers, Netflix involves the customer data from the social networking sites (Snider, 2017).
Thus, it helps them to provide more effective and accurate recommendations to their customers.
Compared to this concept being used by Netflix, other players do not have such reliable data
system for the purpose of recommendations. Moreover, another benefit being offered by them is
compatibility with every multimedia device (Hesse, 2017). On the other hand, the closest
competitor of Netflix, Amazon is not compatible with Apple TV. Hence, this benefit offered by
Netflix is increasing the convenience level of the customers along with providing the
opportunities for them to cover and target more number of customers. Thus, these are the
benefits that Netflix communicate to their customers in positioning their products.

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Thus, the positioning strategy of Netflix is helping them to position their service as a
premium service with having higher degree of personalization for their customers. These
positioning strategies being initiated by them are helping them to have distinctive image in the
market regardless of having high competition.

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Reference
Curtis, J. (2017). Netflix vs. Hulu Plus vs. Amazon Prime Comparison. Moneycrashers.com.
Retrieved 1 December 2017, from https://www.moneycrashers.com/netflix-hulu-amazon-
comparison/
Griffin, A. (2017). Netflix is raising its prices. The Independent. Retrieved 1 December 2017,
from http://www.independent.co.uk/life-style/gadgets-and-tech/news/netflix-price-rise-
monthly-subscription-charge-increased-for-new-users-10312543.html
Hesse, B. (2017). Battle of the streaming giants: Netflix vs. Hulu vs. Amazon Prime Instant
Video. Digital Trends. Retrieved 1 December 2017, from
https://www.digitaltrends.com/home-theater/netflix-vs-hulu-plus-vs-amazon-instant-
video/
Snider, M. (2017). Netflix adds personalized profiles to streaming service. USA TODAY.
Retrieved 1 December 2017, from
https://www.usatoday.com/story/tech/personal/2013/08/01/netflix-adds-new-profile-
feature/2603675/