How does the giant do it? Netflix Company’s Globalizations Plan

All businesses anywhere in the world aim at globalization. Globalization can get achieved by drafting and implementation of a global strategy. The opportunities can get accomplished by implementing the competitive advantages. The marketing and operations departments should team up in identifying the competitive benefits of a firm. Netflix Company is one of the businesses that are working tirelessly towards the realization of globalization. Currently, Netflix has expanded its markets in more than 130 countries (NETFLIX). Netflix aims at extending its services to all countries by 2016 in the exemption of China. The infrastructures in China do not permit Netflix’s expansion strategies (NETFLIX). However, the company will soon establish itself in China after a careful study of the market.

Global Strategy

Netflix has realized the competitive advantages it has over the competitors, which are aiding at its globalization. Netflix has the economies of scale. According to long-term view of the company, the company aims at creating original contents exclusive to the enterprise (NETFLIX). Netflix aims at creating more confidence to produce and promote products effectively. Netflix involves the customers in the social media in getting feedback about their products. Netflix has accounts on Twitter and Facebook and from here, the consumers can access them. Consequently, Netflix can be able to conduct an online survey to unravel what the customers need and customize the products. Furthermore, the interactions between the firm and the clients increase the confidence and loyalty of the customers towards Netflix. Moreover, Netflix plans to spend $1billion on marketing in 2016 (NETFLIX).

Netflix has demand-side benefits of scale. These benefits arise when the firm aims at producing quality products which attract the consumers. Netflix has the insight that as the telephones gave way to mobile phones, linear television is shifting to internet tv (NETFLIX). The change means that users will neglect the cable and dish television for internet tv. The change will mean Netflix has more customers than competitors and hence efficient globalization. Additionally, Netflix has the capital requirements in globalizing. The company has set enough resources in the aim of globalization ($800million in technology and 12 B on infrastructures) (NETFLIX). The company can pay a time-based license that allows for multi-year exclusive subscription video-on-demand (SVOD).

Netflix enjoys the advantage of unequal access to distribution channels. The internet television offered by Netflix uses better channels in delivering products than linear televisions. The channels used by Netflix ensure personalized experience to the consumers and the services are available on any screen as opposed to linear television channels. The Internet profile employed by Netflix is faster and reliable compared to linear television. The company also offers freedom and flexibility where consumers can view their taste content on demand and any screen (NETFLIX). Furthermore, the online television has incorporated rapid innovation such as TV apps that allow improvement updates and UHD 4K video content streaming.

Netflix is embracing the power of buyers and hence, concentrating more on providing customized quality products. The firm plans at spending $5B in creating quality services to consumers and hence winning the market. The cost leadership by Netflix will sustain the company amid of the competitors.

 

 

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