Netflix Strategic Decision
Upon consultations, the company’s mission, value statement and vision that are in line with the required goals and objectives are reached at. Competitors’ position in the market are analyzed and proper strategies to counter them are proposed and agreed on with an attempt to protect the company from being phased out of the market by its competitors. The need and desire for growth and progress of the company drives the investors into SWOT – Strength, Weakness, Opportunity and Threat analysis of the company. This paper therefore seeks to analyze factors that contribute to either failure or success of business strategies and performing the Netflix Company’s SWOT analysis with a clear intention of evaluating and knowing the SWOT’s effects on the corporation’s strategic planning (Belew & Elad, 2017) What Contributes to either Failure or Success of the Business Strategy? Strategies are the scope of every company in both short and long term planning.
Strategies give the company the direction to follow and point the way towards achieving the company’s objectives and goals. Without a vision, companies stumble and phased out. To move into the correct direction and higher position, the company must have a vision (Clark, 2016). It is also through vision that company’s strategy becomes visible and achievable. Good or proper visions are always consistent, clear, descriptive, creative, realistic, ambitious and inspirational. Where the implementations of the company’s vision are poor, the business fails and when the company’s vision is actualized then the business entity or organization succeeds both in strategy and prowess. Quality service, honesty, teamwork, accountability and transparency enhance understanding thus improving techniques of meeting the customers’ demands.
Principles and values are vital when it comes to achieving the company’s goal. They are the propellers that gear the company’s vision and mission. For competitive service delivery, employees must adhere to the company’s values and principles. This in-turn will be the centre of attraction for customers. Leadership Team and its Importance in the Business Strategy The effective implementation of the company’s strategy requires its leadership to be in its correct place so as to help the company in meeting its goals and objectives. All the employees of a company, irrespective of the position one is holding, plays a vital role during the strategic implementation process (Davis, 2017). Senior employees become role models to junior employees thus when it comes to influencing the junior employees to accomplish tasks and meet deadlines, senior employees are key factors to be incorporated in the equation.
Everybody within the company’s enterprise is a champion of the company’s strategy. When the attitude of employees towards the company’s strategy is positive then achieving it becomes so easy and the reverse is true. History has it that when some leaders form a parallel group or resistance then they act as stumbling block and bumps during the implementation process thus ineffective business strategy implementation hence failure. To conclude because concluding I must, the success of any business strategic implementation stems from leadership buy-in policy. Its main importance is pooling all the employees together, to work as a team with a common goal, obligation and duty. Performing a situational analysis analytical tools It’s not a sin but rather a necessity for the company, organization or an institution to fully understand both its internal and external environment.
This enables the company to realize its competitors, customers, business environment and potential. These are Netflix Inc strengths that they capitalize on and make unbeatable profits. Weaknesses analysis revolves around poor performance areas. In the case of the Netflix Inc, it’s reported to be in the departments of execution of the strategic implementation plans that perform below average, insufficient capital and occasionally poor or low quality of goods and services. Weakness majorly causes the backward development of the company. Opportunities refer to technological, socio-cultural, and economical and the political changes that favors the growth and development of the business. A government policy is just but one political factor that influence and have an impact on the operation of the business.
Such policies may include but not limited to employment laws, tax policy, political stability and even the international trade policies. The structure of the government also has an impact on the operations of businesses (Dine, 2016). Economic factors include exchange rates, economic growth, unemployment, inflation and interest rate. They affect business performance in a given country. It’s important to know how slowly or fast the environment can affect the business operation. Business operations are also affected by the legal factors such as competitive law, employment law, consumer law, environmental law and discrimination law. These factors have an influence on the strategic operational planning of the company and lawful atmosphere of competition. It is therefore advised to fully examine the legal framework of a country that the company intends to invest in (Hill & Hult, 2017).
Porter’s Five Forces The main reason why Michael E. The company must therefore come up with new strategies to curb the incumbent threat paused by the product substitute. Lowering of the product’s prices and improving product quality are some of the strategies that help the company to beat its competitors and achieve its strategy (KROGERUS, 2018). New entrants into the market are another threat that is experienced by almost all business entities. It therefore needs to be successfully evaluated. The most common factor that attracts so many companies into a particular market is the high profits fetched from that market. In the strategy agenda, company must incorporate standardization of prices for the commodities as well as expanding their clientele or customer base.
These five strategies when coupled with some other policies will ensure longevity of companies in the market (Ball, 2013). SWOT Analysis for Netflix Corporate Company Netflix Inc is ranked as one of the best providers of entertainment services via the internet. Netflix Inc is known of its provision of television documentaries, streaming movies and internet subscription. All its services are provided via the internet. Just like any other company, Netflix is not an exemption; it has weaknesses too that includes low power in pricing. It is the studio that usually determines the prices of movies especially when there is a new movie that should be made available to the public. Netflix therefore sits on the acceptance bar where it has to agree with the price set by the studio.
Netflix also suffers from non-exclusive terms of the movie contents. Competitors of Netflix are allowed to access and probably even distribute the same movies, documentaries, TV shows among others. This is even an additional advantage to the company since it advertises itself thus creating awareness in the market (Rosplock, 2017). Netflix is faced by the threat of competition from companies like HBO, You tube, Hulu, Google, Face book and Amazon. These companies pauses a very stiff but healthy competition in the entertainment industry via online portals hence slowly reducing the Netflix market notch. Online streaming services have been greatly affected by technological changes thus for Netflix to remain on top, huge expenses must be incurred in updating constantly its technology. Black market that has taken the downloading form is equally a big threat to the company.
This can be in the form of allowing people to use their services on a loan basis. Large customer base of the Netflix Inc Company is the source of its high sales turnover. The company should also advance in its marketing strategic planning; this will also fetch clients that will never look back. Majoring on the original contents in the long run should also be strategized (De, 2017). There are several weaknesses that are facing Netflix Inc Company, these calls for advancing or changing the strategies. These policies should just be in place so as to capture the market. Less expensive technological changes should form core of the research and development team of Netflix Inc Company since t a lot of cost has been incurred or either upgrading or creating new technologies.
Still on the issue of technology, adoption of high performing machines should be implemented to help in the swift adoption of technological change. The black market is also threatening the daily operations of the Netflix Inc Company and therefore a laid down strategy should be in place to help curb the pirates like protection codes of the movies aired. Lastly, the biggest threat is loss of customers for without customers any business venture is nothing thus strategic decisions should be made in honor of maintaining customers even if prices are increased. , & Elad, J. Starting an Online Business All-In-One for Dummies. Somerset: John Wiley & Sons, Incorporated. Betz, F. Strategic thinking: A comprehensive guide. Clark, P. Business management. Davis, C. J. Servant Leadership and Followership: Examining the Impact on Workplace Behavior.
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