increasing streaming business) under one brand.

Focus such branding efforts on the “ease

of use” cornerstones of Netflix’s original philosophy.
Continue International Expansion (But Keep a Diligent Eye Open) – Netflix stands to gain a
significant competitive advantage in the international arena with its aggressive expansion
plans. This advantage will come from Netflix size, related economies of scale, and early
mover benefits in many international markets. The benefits from a successful international
expansion outweigh the risks; however, given the costs and time required to get
operationally healthy in a given foreign market, Netflix must diligently manage its efforts
and control its costs and be smart and deliberate in its international growth plans

I think it is important to examine and refine company motives once a year. While many people
(or companies) may have good “intent” that does not mean that the execution is not bad. The
effectiveness of the managers at Netflix (in my opinion) has been negative. It is important to
make sure that a company’s executives do not just seek their profit, position, or possessions
above people, above principle and above everything else. Go over the annual objectives and
policies. Capable people (and companies) are credible. Make sure the company is running with
their strengths, keeping themselves relevant and know where you are headed; having a
current vision and mission statement help. Ask the following questions:
i. What kind of results is the company producing?
ii. Do the results increase or diminish the company’s credibility.
iii. How well are we doing at identifying desired results and executing them
effectively to accomplish those results?
iv. Does the company performance inspire confidence and trust?

Check the company’s integrity, the intent, the capabilities and the results. Stay strong to
principles, even in the face of opposition. Do the right thing, even when it’s hard. Keep your
commitments. Stand for something (Covey, 2006). Agenda grows out of motive. “According to
former New York University economist Paul Zane Pilzer, “economic alchemy” is derived from
principles of abundance – not scarcity – and technology has liberated us from the zero-sum
game of traditional economics into the world of unlimited abundance” (Covey, 2006 pg. 88).

Netflix didn’t expand in international business at once, rather it adopts very carefully, well-
calculated process. It started their expansion efforts from 2010, with gradually in adjacent to
its domestic market.
Which was close to its geographic, culture and regulation factors, so it first entered into
Canada and Latin America and Europe, which turned out with amazing benefits.

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 It has been adopting limited-time offering strategy to enter into a new market, with
minimizing its risk associated with expansion while garnering some initial data from a few
users, this data helps its to shape a region-specific business model. It is a common strategy to
practice localize it, while a company’s expanding its platform into new regions.

Netflix’s expansion success can be attributed into two steps, that its three-stage expansion
move and the way it worked with those markets.

I. First stage-
Netflix did not try to its expansion in global market at once, rather it took step by step with calculating
and taking a minimum risk, by entering first into its adjacent market, Canada, Latin America and
Europe are close to its domestic geographical, cultural and regulation factors, so in the first stage, it
entered in the adjacent market in 2010, which turned out in its favour. In that sense, the first phase of
its globalization process was consistent with the traditional modal of expansion, and it took the
experience and learned that process.

II. Second phase-

Netflix developed the capabilities to expand into a diverse set of markets within a few years. The
second phase involved faster with more-extensive global expansion, which is found in the second stage
of Netflix expansion into some 50 countries, and drawing on the lessons it learned in the first phase to
operate in a wider variety of markets, Netflix didn’t forget to localize, along the way Netflix team went
out its way to develop design processes that facilitated localization, aside from offering good video
quality and subtitles the company engaging new audiences by investing in new content based on
region to region. The second phase helped Netflix continue learning about internationalization and
partnering with local stakeholders while also growing its revenue, hence this phase was involved to
expand into more-distant markets, it was supported by investments in content geared toward the
preferences of those geographies, as well as technological investments in big data and analytics.

III. Third phase-

It was the more-accelerated pace of entry brought Netflix to 190 countries, use everything it had
learned from the first two phases, it gained expertise in the content people prefer, the marketing they
respond to as well as how the company needed to organize itself. Then Netflix started to focus on
adding more languages(including more subtitles, after six months it entered into Poland and Turkey in
2016, for example, Netflix added the local languages to a user interface, subtitles and dubbing. It
turned out in gaining more audiences.

There it could be said, Netflix’s expansion strategy constitutes a new approach called ‘Exponential
globalization’ consist of a carefully designed cycle of expansion, executed at increasing speed. It is
estimated that. In 2016, it invested approx. 5 billion dollars in international content creation, and also
brought the exclusive streaming licenses for the local market.

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On the other hand, knowing that mobile is the primary device of users, so Netflix ensured its mobile
experiences was up-to-par.

IV. Netflix’s challenges in Global expansion

Despite its undeniable success, Netflix expansion process was not a garden of roses.

There are some incidents, where Netflix had to face some hurdles, as follows

For instance, Australian TV stations repudiated Netflix’s entrance into the country because being
classified as a technology company, instead of a broadcaster, it didn’t have to comply with the
regulation.

In 2016, Kenya film classification Board denounced that some of the content included in the streaming
platform’s catalogue “threatened moral values” like-wise the Indonesian, Vietnamese and Malaysian
governments prevented Netflix’s expansion because the company didn’t comply with its censorship
policies, similar regulatory differences prevent Netflix from penetrating China.

If we talk about India, it was the unable defeat to the competitors in India, when Netflix got to India, It
was welcomed by four major competitors: Hotstar, ditto Tv, Spuul and Eros Now, eros now had 30
million subscribers.

It had also had a hard time in Japan, with local and foreign competitors having very sizeable and very
attractive content libraries, Netflix’s partnership with local content producers and licensing purchasing
is reaping good results, but it has the company operating at a short term loss,

Netflix’s strategy into global expansion was methodic, data-driven and user-oriented

V. Learning from Netflix’s global expansion

When you are starting to global expansion, you can’t get everywhere at once, so start with those
countries that won’t pose significant regulation and culture barrier. Don’t go all-in the costliest the
decision, the more data you need to ensure it makes sense.

As the streaming battles heat up, Netflix is hoping a new partnership with Samsung will help it fend off
rivals. the mobile device maker announced a deal with Netflix that will bring to its Galaxy smartphones
special bonus content associated with several Netflix original shows. The partnership also allows Netflix
to more deeply integrate its streaming service with Samsung devices.

Netflix has made a concerted effort to sign carriage deals with pay-TV operators as a means of
extending its global reach. In October, the company launched on France's CanalPlus service, following a

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