Netflix internal and external stakeholder analysis
Some of the significant stakeholders of the organization that will be addressed include owners, managers, consumers, suppliers, employees, society, and shareholders. This paper is going to identify the functional areas of the Netflix organization and discuss them appropriately. It will also be going to determine the external and internal stakeholders and list their roles and contributions to the organization. Moreover, the stakeholder interest and influence on the organization are also going to be discussed sufficiently. To understand the importance and the power of the stakeholders in the Netflix organization, this paper is going to consider a stakeholder matrix which is going to be used to group the stakeholders. Netflix is a US-based media service provider organization founded in 1997 by Reed Hastings and Marc Randolph.
The organization is headquartered in California. The company offers media service and through the subscription of films, movies, television programs, and documentaries. Netflix operates in a way that customers subscribe as members and watch a wide variety of movies provided by the company (Edward, and Moutchnik). This paper thus seeks to conduct a stakeholder analysis of Netflix Company and present essential roles and aspects of the stakeholders. Moreover, Netflix does not hire interns or new graduates but professional and well-experienced personnel who work collectively to achieve the goals in the organization. Operations Netflix has spread its operations worldwide in many countries. It still aims to expand in the market and secure 100 million subscribers in South Asia. Moreover, it looks forward to the creation of 100 locally produced projects.
Netflix also operates with diverse languages totaling up to 17 languages. The owners also are responsible for arranging finance for the organization and approve the strategies proposed by the managers and the employees. The owners also check on the books and think about the future hence coming up with strategies which could help shape the organization in the future. Managers Some of the Netflix executive personnel include David Hyman, Rachel Whetstone, Ted Sarandos, Greg Peters and Jessica Nael. The managers perform different roles such as planning activities for the organization. Controlling activities, staffing and directing in the organization. Netflix employees ensure that customers receive excellent services. They also offer guidance to the customers through customer care and also guide the users on how to use the services.
Moreover, employees help in the marketing of the organization brands in the broad market through various marketing strategies. The employees also contribute significantly to goal achievement and success of the organization through their roles which they take seriously. The employees also cooperate with the organization managers to build strategies which are implemented in the organization to achieve goals and organization success. Moreover, the customers form the foundation of the business as their existence is the most powerful and significant as the organization could not be existing or operating without them. Consumers also motivate the company to produce more products and introduce them into the market. Additionally, most of the revenue of the organization comes from the customers who pay subscription fees for Netflix services.
Competitors Netflix has numerous competitors in the market who provide the same services it delivers. The competitors include HBO now, Amazon prime video, Sling TV, Hulu, MUBI, Feeln, and CBS. Shareholders are significant for business growth through their actions of making financial investments into the country. They invest highly in the organization and expect good income out of their investment which is measured through dividends and profits. The shareholders also share the risks, losses, and profits in the organization significantly. It is, therefore, s vital requirement to have stable and well-developed stakeholders who will ensure that the organization has met all its goals in the market and all the operations in the market. Nature and degree of main stakeholders’ interests, and implications of conflicting interests Different stakeholders of Netflix have different interests in the business.
Moreover, investors are also interested in the profits of the organization. They wait for returns from their investments. Low profitability of the organization will reduce their share of profits. The competitors in the market also have a significant stake on the business information which they can use to implement their strategies to be at the same competitive level or become more competitive than the organization. The government is also significant stakeholders who have an interest in the taxes from the company. The employees also accept change and demonstrate competitiveness towards the success of the organization. They also make sure that the customers are well served and receive quality services and products The shareholders also have a significant influence on the organization.
They contribute financially to the organization which makes the company run efficiently with a strong financial base. They also share the risks, profits, and losses of the company. Stakeholder matrix Meet their needs • Consumers • The community Key players • Suppliers • Employees • Owners/ investors • managers Less important • Society • competitors Show consideration • Government • shareholders PESTEL analysis Political factors • The level of political stability in the host countries has favored Netflix operations. • There is also high interest and trends in watching new or current movies which motivate people to subscribe to Netflix (Murphy). • The educational background of the target market and the marketers are also significant for determining the right target market. • The youth population also forms part of the large consumers because of their watching behaviors.
Technological factors • Recent technological advances have brought many competitors into the market thus reducing the organization’s market share. • Technological improvements and internet have also led to an increase in the consumers who can stream the videos and enjoy Netflix services conveniently (Murphy). They, therefore, should be considered first and be evaluated in significant ways to improve their commitments and positive influence on the organization. Netflix should consider expanding some of its stakeholders such as the consumers who are the end users of their services. The customers are the primary purpose of the business existence because the business cannot exist when they are not available. The customers with their ability to increase the profitability in the organization should be considered as most important and attended to effectively.
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