Analysis of Netflix's Strategies to Survive Market Turbulence-HR6004

This report analyzes the strategies Netflix employs to navigate market turbulence and maintain its competitive edge in the online streaming industry. It examines the challenges Netflix faces, including competition from companies like Amazon Prime and piracy, and explores the strategies the company has adopted to overcome these issues. The report delves into Netflix's business context, its early advantage in the market, and its subsequent strategies such as internationalization, localization, content diversification, and technological updates. Furthermore, it compares Netflix's strategies with those of Amazon Prime, highlighting the competitive dynamics between the two companies in the digital entertainment market. The research aims to provide a comprehensive understanding of how Netflix can sustain its business and achieve superiority in a highly competitive global landscape. Desklib provides a platform to explore similar solved assignments and projects.

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Table of Contents
Report Title......................................................................................................................................4
Introduction......................................................................................................................................4
Project Questions.............................................................................................................................5
Aims and Objectives of the Project.................................................................................................5
Purpose of the Project......................................................................................................................6
Literature Review............................................................................................................................7
Netflix Business Context.................................................................................................................7
Amazon strategy............................................................................................................................10
Research methodology...................................................................................................................11
Ethical Considerations...................................................................................................................13
Planning.........................................................................................................................................13
Timeline.....................................................................................................................................13
Gantt chart.....................................................................................................................................14
Figure No 1: Gantt chart............................................................................................................14
Competitive Advantage of Netflix.............................................................................................18
Figure 1: Netflix being the first choice for the Americans........................................................19
Figure 2: User Base of Netflix of VoD......................................................................................20
Amazon Prime and others vs. Netflix........................................................................................20

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Figure 3: Netflix vs. Hulu and Amazon.....................................................................................20
References......................................................................................................................................21

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Report Title
The title of the following research is “The efficiency of strategies Netflix put in place to
survive the turbulence in the market”.
Introduction
In the entertainment industry, online streaming has emerged as one of the major
contenders of the future entertainment business. Online streaming of videos and shows has now
become the most recent trend and people have slowly started to accept the recent trend. The rise
in the smartphone users have further increased the use of the different kinds of the online
platforms. Netflix has been a familiar name in the following industry as the company has been
able to gain the largest market share in the industry in the last few years. The advantage of the
following industry has been the presence of a variety of different types of the programs and
contents that has made the online application acceptable to most of the global population. Apart
from this the easy accessibility to phones and internet has been a competitive advantage for the
business organization. However, the recent rise of some other companies including Amazon
Prime and Hulu had been important for the benefits of the organization. Amazon Prime
especially as been the most important competitor of Netflix. Since the launch of the Amazon
Prime, the company has been able to gain a rapid rise in its market share accordingly. Both these
companies namely Netflix and Amazon prime have been delivering on demand video services
and have been heavily investing on the launch of the different kinds of original series for the
customers. These original series have gained huge popularity as they attract a large number of
different people which in turn leads to an increase in the profitability of the organizations. It has
been seen that Amazon has a great market share in the e-commerce industry and their stepping in

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the entertainment industry has been widely accepted by the large proportion of the present set of
e-customers of the enterprise. The operations of both these companies are spread across a large
number of different countries and therefore these companies are close competitors of each other
in the online entertainment industry. Both of these are competitors of each other in the digital
market and are thus involved in a competitive race to scale unlimited heights and achieve the
best in order to satisfy the customers of the business. The following paper will provide a clear
and transparent analysis of the competition in between the two companies and accordingly
address the strategies of the company.
Project Questions
The research questions will be essential for the analysis of the research as it will be based
on the different perspectives of the research. The research questions are as follows;
a. What are the issues that are faced by Netflix in the market?
b. What are the strategies that are adapted by the management of Netflix to overcome the
issues?
c. How the management of Netflix does implements the strategies to overcome the issues?
Aims and Objectives of the Project
The aim of the project is to find out the ways by which Netflix can overcome the
turbulence in the highly competitive global market and make their business sustainable and
superior in nature.
The objectives of the research are as follows;
1. To find out the issues faced by Netflix in the market

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2. To find out the strategies that are adapted by the management of Netflix to overcome
the issues
3. To implement the strategies of Netflix that can overcome the issues
Purpose of the Project
The main purpose of the project is to identify the different perspectives of the business
organization and also to identify the different issues that plagues the company and makes it hard
for them to carry on the normal business operations. The online video steaming industry was first
created by Netflix. However, the economic liberalization and the entry of large number of
different other companies into the same business has led to a crisis situation in the business.
Apart from these the business of Netflix is also under thereat due to the presence of the different
kinds of pirated websites that hacks the contents and videos from the Netflix site and uploads
them in other free websites. The purpose of the research will be to highlight the importance of
the present issues and to find out the possible ways to tackle the problem. The research will also
highlight on the other different areas related to the topic which includes on the study of the effect
of the customer relationship on both Amazon prime and Netflix. As said earlier, the research will
also present the possible reasons as to why the management of Netflix totally failed to see or
estimate the entry of the other competitors in the market. Lastly the research will be estimating
on whether the organization can be able to overtake Amazon prime and close down on the
market gap. Therefore, it can be said that the research will be quite important as it will study
some of the most crucial elements related to the following subject.

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Literature Review
Netflix Business Context
Netflix is an American based public company that is involved in providing internet based
and subscription based streaming media, distribution of film and television contents on the
internet and video content production (netflix.com 2019). Headquartered in Los Gatos,
California, the company is spread over a large number of different locations in Latin America,
Europe, South East Asia, East Asia and South Asia and has its subsidiaries in United Kingdom
and Singapore. The company started as an online enabled DVD rental by mail business. The
business used a monthly subscription model instead of the single rental model that was a
common feature in most of the business rental stores (netflix.com 2019). The management of the
company provided the customers with unlimited number of rentals at a fixed rate with extended
due dates. The following business model was totally new and the management of the company
was able to introduce a new kind of business in the market.
The company was also able to gain success due to the start of the wider acceptability of
the internet across the globe from the start of the 2000’s (netflix.com 2019). Apart from this the
internet connectivity was also highly improved during the following times. The change in the
speed of the internet, new connections, bandwidth increase and other kinds of specific internet
based services enabled the management of the organization to go beyond the traditional limits
and start something new and unique that led to the company gaining a special and unparalleled
competitive advantage in the market (netflix.com 2019). The company started to offer the
streaming content from the start of the year 2007 (netflix.com 2019). The start of the streaming
business saw the company moving away from its traditional business of DVD rentals. In the

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present times, the company has over 120 million subscribers who pay for watching the contents
that are promoted and shown in the application of the company. According to, Aguiar and
Waldfogel(2018) the company has now its operations spread over 190 different countries across
the globe. The direct competitors of the company include Amazon Prime, You Tube, iFlix and
HOOQ. The success of the business and the way it implements the different elements of the
business makes the organization.
The main marketing plan for Netflix is to increase brand awareness and sales for the
company. The company now offers the freedom to the customers to steam the available movies
in their site and enjoy them. Though Netflix was the first to enter the following business and
popularize it, the gradual increase in competition and liberal economy made other large
companies to enter the following business. The entry of different such business units have made
the competition tougher for the company to survive in the market (Aguiar and Waldfogel 2018).
The management of Netflix needs to implement different kinds of the strategies in order to
ensure the success of the business. The proposal of the organization is to target a large number of
customers of different age groups. Apart from this the organization also needs to launch new
products and new services that can enable the success of the business organization in the market.
The analysis is done for determination of the different challenges that are associated with the
marketing strategies of the business organization (Aguiar and Waldfogel 2018). However, the
implementation of these policies alone cannot guarantee the success of the business organization.
The advent of internet, advancement in different digital technologies and presence of large
number of customers are serious threats to the success of the business in the market. Apart from
these the organization also faces indirect competition from different kinds of Television channels
that tends to disrupt the business of the organization. The company also faces serious threats

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from piracy where the contents of the company which includes the shows and the videos being
pirated and uploaded in other websites for the people (Araujoet al. 2016). This tends to disrupt
the business of the organization. The research will be providing the main perspectives that create
a turbulent atmosphere in the market for Netflix and will also highlight the different ways by
which the company will be able to ensure the success of the business.
Amazon Business Context
There is significant competition between Netflix and Amazon Prime video which has
currently emerged as a major business battle. Both of the video on demand services provide
subscription based services offering a wide range of programs. Many have opined that this is the
golden age of video streaming. The most important services that are being offered by the
companies are providing the ability to the customer to choose the exact movies, series or videos
that they would like to view and the ability to access these shows from anywhere that they can
get internet access. The availability of these applications have significantly increased the number
of people that use these services. Channels like Netflix, Hulu and Amazon prime has helped to
increase the number of audiences that view web series. Recently, it can be said that Netflix has
emerged as the dominant force in the market. Amazon Prime can also be said to be a strong
player emerging recently in the market. Despite the late entering of Amazon in a market that
already had Netflix as a dominant force, it has gained significant prominence in the market.
Netflix strategy
Netflix is already an established named in the video streaming business. According to
Samson (2018) Netflix was able to capitalize on the first mover advantage that it was able to gain

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in the video streaming application business. It was one of the very first companies that came into
the video on demand service business. Netflix started its operations in 2007 when streaming
videos on mobile phones were not common. It started mainly as a video on demand site that
could be accessed from the devices such as laptops and computers. The company previously had
a DVD rental service as its core business. Some of the most important business strategies of
Netflix are internalization, localization strategy, diversification through content, marketing and
building capacity through constantly updating technology. Netflix operates in a global level and
has a diversified business offering. The company has also offered mostly original content to the
users. This has helped the company to create a unique value proposition for the customers.
Amazon strategy
Amazon as a Video on Demand Company entered the market a long time after Netflix.
The company entered the entertainment industry through its first venture called the Fire
TV.Netflix has already been successful with the video services they were offering. Cheaper
internet services available for the target customer base made it much easier for the company to
spread their business. Amazon prime has been one of the biggest drivers behind the growth of e-
commerce. Millions of users took up subscription of Amazon prime subscriptions which gave it
a significant boost. One of the diversification strategies was that the company offered both video
on demand and audio on demand services. Moreover, the Amazon company effectively used its
expertise in the e-commerce services to provide add on services with the video streaming
services of Amazon prime. Amazon e-commerce services were already present across as many
as 200 countries. This created an effective platform for Amazon to sell their products. Amazon
further improved their business by buying exclusive business rights for streaming popular shows,
movies and series.

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Research methodology
The research methodology will act as one of the most important chapters in the research.
The following chapter will highlight the different types of processes and methods that will be
needed to ensure the conduction of the research. The major feature of the following chapter is the
systematic approach that is used to describe the exploration of the particular topic. The
description of the different processes and methods also helps in the prediction of the
phenomenon of the research that is used by the different types of the research tools. In the
following chapter, the research will evaluate the different kinds of the methodological tools that
will include the likes of the philosophical stances, research designs, research approaches along
with the selection of the type of data to be used for the research (Kumar 2019). Apart from the
providence of the above said information, the research will be also providing a clear and
transparent justification on the selection of the different kinds of the methods to be used in the
research.
The research will use the interpretivism research philosophy in order to complete the
study. The use of the interpretivism research philosophy is essential for the following research as
because interpretivism method can be said to be as the best possible method for the following
research. The use of the interpretivism method can be also useful due to a number of reasons.
The interpretivism methods will ensure the analysis of the data in a positive manner. The
interpretivism research philosophy will also act as an important tool for the identification of the
different perspectives of the research that will help analyze the secondary research methodology
in a much better manner. On the other hand, the research will be using the deductive research

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approach as the deductive research approach can be seen as the best possible research approach
perfectly suited for the research. The deductive research approach will help the research to be
totally based on the secondary sources of information which will ensure the reliability of the
sources of the different kinds of information. The selection of the deductive research approach
will also allow the research to conduct the analysis in a proper and effective manner that can be
helpful for the success of the research. The gathering of different forms of data from different
kinds of secondary research articles is another main advantage of the following research. The use
of the selected theory and models has been used to effectively find out the issues and also the
different ways to mitigate the issues concerning the management of Netflix (Flick 2015). The
research design has also been one of the most important elements in the project. The descriptive
research design will be the best suitable for the following research as the research will involve a
deep understanding of the different factors and perspectives of the problems faced by the Netflix
management and will also analyze the different sources of mitigation of the issues. Apart from a
deep understanding, the cause and effect of the rationale of the following research will also help
to analyze the future occurrences. The ability to predict the accurate future happenings will help
the research to mitigate the issues faced by Netflix in an easy process. The samples of the
research are generally collected from a wide range of different people based on different
demographic factors like age, gender, religion, income, ethnicity and many more as such. The
research will be conducted using the systematic sampling technique in order to gather the data to
analyze the research in a proper manner. The use of the systematic probability sampling
technique helps to avoid any form of bias within the research. The data has been collected by
means of the interview transcript. The following research has used the secondary research
articles for the conduction of the research. The use of the secondary research articles has helped