STRATEGIC MANAGEMENT WORKBOOK

2nd semester MBA, section “B”, Batch (2020-2022)

Group (B11)

Lavita Vanisha Dsouza 4NM20BA067

Prathiksha R 4NM20BA103

Mahima Gleny Fernandes 4NM20BA069

Naveetha T 4NM20BA081

Prajna 4NM20BA091

Chosen Company: Netflix Inc.

Under the Guidance of:

Dr. Sudhir M
Professor, JKSHIM

NITTE

Date of submission: 23-08-2021

 WORKBOOK

FORMAT: 1

Chosen Industry: Tech and Entertainment Mass Media

Chosen Enterprise: Star Trek

Chosen Company: Netflix

FORMAT: 2
Three levels of strategy (Corporate, Business and Functional)

Identify at least one case of a strategic management decision for each of the following cells.
Where relevant, give details of what the decision was, why, when, where, how etc. Include all
relevant details and justify why you classify the decision as strategic.

Type of decision The chosen company Competitor

(Netflix) (you may choose different
competitors for the three
cases)
Corporate The corporate strategy is Apple TV+ launched in
based on Netflix’s business November 2019. It offers a
model, where cost small but growing number of
maximization and market high-end TV shows and
penetration are supported. movies for $4.99 a month
The online company business and competes directly against
framework implies strategic all the other video streaming
management support for services, including Netflix.
information technologies for
efficient operations and
global expansion.
Business One of the core pillars of Amazon Prime is the
Netflix’s business growth competitor for Netflix so
strategy is its focus on Amazon Prime is also
original content. The investing in the original
company has continued to content. However, Netflix’s
expand its collection of collection is much larger
original movies and shows. compared to Amazon Prime
And also, the Netflix video or any other competitor. As
on demand service which Netflix’s treasure trove
began expanding grows bigger so does its
internationally. It also plans empire
to add more of them in 2020
and 2021. Its competitive
moat has continued to
strengthen. Everything aside,
original content is the main
 differentiating factor for
online streaming sites.
Functional The functional strategy of Blockbuster and Comcast are
Netflix is making Netflix the primary competitors for
accessible to every Netflix. These two
demographic across the companies have online and
world with new content cable “Video-on-demand”
acquisition. Overseas capabilities, making them
markets are a major source of threatening entities in terms
untapped profit and potential. of video rentals that can be
Using that source of viewed immediately.
untapped profit in the future
is how Netflix will stay in
business for many years to
come.

FORMAT: 3
Characteristics of Strategic Management Decisions

Take one of the decisions by the company that you identify by research above and complete
the following:

Chosen decision by the company: Focus on original content and collection of original movies
and shows.

Characteristics of Strategic Explain why the chosen decision by the company

Management decisions fits the characteristic listed in Col: 1. Don’t force
fit. Only explain if you are convinced.
1. A comprehensive library of Netflix began acquiring original content for its library,
movies & TV shows. beginning with drama, series etc..,

2. New content development The company has invested a tremendous amount of

resource into new content development annually.

3. Convenient & easy-to-use The most significant component of Netflix’s

competitive strategy is that of the user experience,
which the company has prioritized and they have made
people easy in navigating.
4. Transitioning to internet The main goal of Netflix is providing the high
delivery of content availability and performance by distributing the
service to end users and the content is delivered
through the internet as it has become a mission critical
medium for people and enterprises.
5. Expanding internationally Netflix was operating in 50 counties. Today, it is in
over 190 countries and has drastically increased their
rate of expansion in the last 5 years.
FORMAT: 4
Take one of the decisions by a major competitor of the company that you identify by
research above and complete the following:

Name of the Competitor: Amazon Prime

Chosen decision by the company: Focus on selection, price and convenience

Characteristics of Strategic Management Explain why the chosen decision by the

decisions
1.Amazon Prime is cheap
2.Local content on prime is better
3.Prime has added benefits
4.No extra cost for HD and 4K
competitor company fits the characteristic
listed in Col: 1
Price is cheap than Netflix. It doesn’t charge
extra for 1080p full HD and 4K ultra-HD
resolution on any of its plan.
Prime has more regional content. Content
streaming platform is focusing its investment
on bringing more content and expanding the
service to large audience.
Amazon Prime is bundled service apart from
Prime video, you also get most of other
benefits like two-days shipping on Amazon
India website, early access to Amazon sales
and deals, and more.
Amazon does not charge extra for 1080p full
HD and 4K ultra-HD resolutions on any of its
plans.

VALUES OF THE COMPANY

FORMAT: 5

What are the explicitly stated Mission/Vision/goals/objectives etc. etc. of the enterprise?
State how the enterprise articulates its philosophy (whether as mission/vision/goals/objectives
etc.)

Vision:

 Becoming the best global entertainment distribution service.

 Creating markets that are accessible to filmmakers.
 Licensing entertainment content around the world.
 Helping content creators around the world to find a global audience.
Mission:

 To entertain the world. Whatever you taste, and no matter where you live, we give
you access to best –in-class TV shows movies and documentaries.

FORMAT: 6

What is the implicitly stated Mission/Vision/goals/objectives? How do you come to your

come to your conclusion and justify your statement?
 Vision:

 To continue being one of the leading firms of the internet entertainment era.
Mission:

 We promise our customers stellar service, our suppliers a valuable partner,

our investors the prospects of sustained profitable growth, and our
employees the allure of huge impact.

FORMAT: 7
Connect the explicitly and implicitly derived philosophy of the company and critique it.
Netflix integrated as well as customer-oriented. The company is accessing global platforms.
The vision is to have a global presence as well.
The inclusion and diversity in Netflix allow the attention that helps to get the strength to
thrive successfully. Also, the company makes sure that the content they serve accommodates
the cultural backgrounds too.
Netflix worked over the years at a continual speed to expand its base in the audience.
With every passing time, they moved to different strategies and from offered DVDs, they
started the streaming platform for different contents.

FORMAT: 8
WHAT ARE THE BUSINESSES WITHIN THE ENTERPRISE

1. Streaming Media 5. Television Production

2. Video on Demand 6. Television Distribution

3. Film Production 7. Netflix Studios

4. Film Distribution 8. DVD Netflix

FORMAT: 10
Do Portfolio Analysis in the following space (use BCG Matrix)
(Make sure there are no strong dependencies between the businesses)

Stars:
Those segments come under the category of stars which have high industry sales growth rate
and high relative market share. Netflix international streaming segment comes under the
category of stars. Netflix market occupy the highest place in the market share of international
streaming.
Cash Cows:
Cash cows are those segments which compete in low growth industry and have high relative
market share. The industry growth rate declined over the years because many people now
prefer to stream online. However, Netflix still have the highest rate of subscription in DVDs.
Netflix should explore other markets where blue Ray is still in demand in that way, they can
increase their market share. But still DVD segment of Netflix is leading domestically.
Question Marks:
None of Netflix segments come under the category of question mark. Those segments come
under the category of Question mark, which have low relative market share and operates in
high sales growth industry. 
Dogs:
None of Netflix segments come under the category of dogs. However, those segments are
included into the category of Dogs, which operates in low sales growth industry and have low
relative market

IDENTITY OF THE BUSINESS UNIT CHOSEN WITHIN OF THE COMPANY

FORMAT: 11
What is the product market space for the business? Compare with competitors. Consider
concepts like strategic groups, niche markets. Identify the reasonable basis for forming
strategic groups. It may be useful to start with the mapping of product market space for the
whole industry.
The Positioning Map displays Netflix compared to its competitors: Hulu, Disney+. It
measures it by its price and quality, showing Netflix having higher price than both companies
and weaker quality than Disney+, but better than Hulu. From this graph, we can detect that
Disney+ has a slight advantage to Netflix, concluding that Netflix should enhance their
content and maybe lower their prices in the future.

FORMAT: 13
Connect product market positioning with the mission/ vision of the enterprise? Is there a
proper fit?
Yes, there is proper connection between mission/vision statement of the company with its
product market positioning. Netflix places itself as a platform that has completely
revolutionized the movie experience. Netflix’s corporate vision and mission statements keep
the business open to diversification into other markets that are not limited to online media.
This possibility points to potential higher growth and expansion of the movie streaming
business.

IDENTITY OF THE COMPETITOR

FORMAT: 14

Choose Nearest Competitor: Disney plus

What are the explicitly stated Mission/ vision/ goals/ objectives etc. etc. of the nearest
competitor. State how it designates its philosophy (whether as mission/ vision/ goals/
objectives etc.).
 Disney’s vision statement is “to be one of the world's leading producers and providers of
entertainment and information”.
Disney's mission statement is “to entertain, inform and inspire people around the globe
through the power of unparalleled storytelling, reflecting the iconic brands, creative minds
and innovative technologies that make ours the world's premier entertainment company”.

The company’s vision statement hints at the leadership desires that the company wants to
achieve in the sector, while the mission statement describes the changes and the
developmental influences the company will have on the industry. It also emphasizes on the
quality of services and experiences the company will treat its clients to.

FORMAT: 15
What are its implicitly stated Mission/ vision/ goals/ objectives. How do you come to your
conclusions and justify your statements

 Disney has already achieved its mission of growing into a multinational

corporation that serves on a global scale.
 Disney has gained so much reputation within the industry and among the clients it
serves. The company is simply self-sufficient in this sector.
 It does not depend on external assistance to handle any of its operations from creating
the content to providing diverse services in the industry. 

FORMAT: 16
Connect the explicitly and implicitly derived philosophy of the nearest competitor and
critique it

 Disney core values comprise “make everyone’s dreams come true, you better
believe it, never a customer, always a guest, all for one and one for all, share the
spotlight, dare to dare, practice, practice, practice, make your elephant fly and
capture the magic with storyboards.”
 The strength demonstrated by Disney comes from a variety of principles that guide its
operations.
 The company believes in creating a working environment where all people feel
wanted, secure, and motivated to give their all. It does this by encouraging its workers
to take bold steps into the future through technological embracement, corporation, and
taking calculated risks.

FORMAT: 17
Apply Porter’s 5-force analysis to the INDUSTRY you have chosen and assess the strength
of the various forces the industry faces
 Power of Suppliers
The power of suppliers varies by supplier type in entertainment industry. The number of
suppliers is very high which leads to low bargaining power with them. The industry has also
seen an increase in number of suppliers as a result of increased outsourcing.
Power of Buyers
In Entertainment industry the power of buyers (consumers) is high. It’s due to part to the
economy in that if low-cost alternatives are available, more families are likely to choose
them. The availability of substitutes makes the power of consumers, as the ultimate purchaser
of entertainment of goods and services increase.
Power of substitutes
The most detrimental impact on an industry happens when there’s high threat of substitute.
One of the major threats entertainment industries is facing innovation in other industries.

Power of new entrants

The threat of new entrants into any industry depends on the strength of barriers to entry, and
the resulting response of existing competitors. The threat of entertainment industry is
relatively low.

Competitive Rivalry
Entertainment sectors face many challenges from alternative delivery method, which has
increased the competition among entertainment delivery platforms. The goal of industry
leaders is to be the leading pioneer in digital entertainment and create entry barriers for new
entrants once growth becomes more obvious.

FORMAT: 18
Applying Porter’s 5-force model, analyse the competitive position of the BUSINESS you
have chosen and find what the factors are “threatening” to your firm. Are there ways to
neutralize the impact of competitive disadvantage the firm has vis-à-vis the five forces. Do
these forces differently impact your firm vis-à-vis its nearest competitor? Explain

Power of Suppliers
The suppliers also hold high power in their hands because Netflix gets most of its content
from third-party production houses and producing media. Netflix competes against other
online service providers to get better content and negotiate high prices with suppliers which
differ in different nations as per the demand of local content.

Power of Buyers
Customers have high power because there is a presence of a number of surviving providers at
the national and international levels and customers can easily switch. Low switching costs
prevent companies from charging huge prices from customers and maintain high service
quality to retain the customers.

Power of substitutes
There are many ways of entertainment where some people still prefer TV shows and going to
cinemas for movies etc, the rental DVD products by blockbuster etc., are still in the market
which impacts the business of Netflix.
Power of new entrants
There is a moderate threat of new entrants as the entertainment industry already involves
large companies which cannot be outperformed easily. There is a requirement for huge
capital investments and access to large content to start online streaming services. However,
new entrants can come up with coefficient technology and changes in the industry that may
attract more customers but new entrant still face difficulty in getting suppliers contracts for
content.

Competitive Rivalry
Netflix is facing severe rivalry from Amazon prime, HBO now, Disney, etc., which are well
known in the market. However, Netflix already has an advantage of a high number of
subscribers as a first mover to online streaming which cannot be outperformed easily by any
competitor. However, in some nations, online streaming provides free of cost and low prices.

FORMAT: 19
Undertake a PESTLE Analysis of your business – consider both domestic and
international factors if applicable

Current situation Likely changes in the future

Political -Content restrictions limit Content expenditure will
expansions grow from $15 billion in 2020
to $23 billion in 2025 and
grow 3% every year after that,
becoming 36% of revenues in
the terminal year. Netflix will
never add more than 30
million subscribers per year.
ARPU will grow by 3% per
year, 2% in 2030, and after-
Tax rate =21%.
Economic -Transforming into cable In Netflix’s case, they need to
industry charge a different monthly fee
-Increasing monthly based not only on the
subscriptions country’s economy but also
on the shows and films they
can provide in that country.
Every title generates a
different type of revenue and
costs them a certain amount to
stream on their service. In
order to first break even and
then to make a profit, they
need to analyse how many
shows and films are provided
and the type of account the
person holds. Then they need
to charge an appropriate
 amount.
Social -Netflix believes in Their hospitality spreads
charity and run student beyond the workplace. Netflix
scholarship programme. also gives away student
scholarships. When they are
not doing that, they helping
charities providing low-
income student’s financial
aid. This includes students
studying for their PhDs as
well.
Technological -Saving on monthly data  Advancements in
bill streaming capabilities
-Compression technique accelerated in line or
makes it easier for the better than expected as
user to watch videos in Netflix transitioned to
HD with less data. a primarily streaming
-The development of the service.
translation software  The proliferation of
“Hermes” helps Netflix to mobile phones and
stream in 190 countries. tablets as well as the
introduction of smart
televisions allowed
Netflix to be available
to its customers all the
times.
 The change in viewing
tastes because of the
first two greatly
enhanced Netflix’s
value proposition.
Legal -The main problem which -Netflix will see more
Netflix faces in legal copyright litigation after
aspect are copyrights and Eleventh Circuit Ruling.
geoblocks. -One litigator said these types
-The streaming process of copyright cases would only
should be checked as increase with the
there are users who Oversaturation of online
streams on multiple streaming services.
devices same time

Ecological -Netflix has taken new By the end of 2022, Netflix

initiative and uses the wants to reach “net zero”
wind power energy to greenhouse gas emissions.
reduce its carbon That means it plans to reduce
footprints. some of its emissions and find
ways to offset or capture the
rest. By 2030, Netflix says it
plans to cut emissions from its
 operations and electricity use
by 45%.

FORMAT: 20
What are the resources of the business?
1. Technology - Recommendation system

2. Content library

3. Brand

FORMAT: 21
Subject the above to VRIN (Valuable, Rare, Inimitable, Non-substitutable) analysis

Resource:1 of the Comments

firm
Valuable Focus on innovation has helped the firm build a source of sustainable
competitive advantage. Netflix offers customer experience through
recommendation system.

Rare Netflix’s technology plays a very important role, providing valuable

suggestions to users.

Inimitable 80% of the TV shows people watch on Netflix are discovered

through the platform’s recommendation system.

Non-substitutable Netflix's recommendation system is admired industry-wide for its

level precision. Netflix offers a superior customer experience made
possible through recommendation system that make it easier for
users to select the best titles to watch from.

FORMAT: 22

Resource:2 of the Comments

firm
Valuable The value of Netflix’s library of content is worth more than the
combined content libraries of Viacom, Discovery, AMC Networks.
Netflix spent around $17 billion on content in the year 2020.

Rare Each library of Netflix is unique and what can be found on one, may
not exist on another.

Inimitable Every streaming service has their own content library. So, content
library of Netflix cannot be imitated by others.
 Non-substitutable Yes, it is non-substitutable.

FORMAT: 23

Resource:3 of the Comments

firm

Valuable The brand image has been developed over a long time, and through
continuous effort and quality product offering by the Netflix.

Rare The ability of the Netflix to adapt to different external environmental

and regional cultures is a rare resource that has allowed the company
higher penetration, improved accessibility, stronger brand recall, and
greater visibility.

Inimitable The brand image is a source of competency because it is unique to

the Netflix and cannot be imitated by others.

Non-substitutable Yes, Netflix’s brand equity is non-substitutable

FORMAT: 24

What are the resources of the nearest competitor?

 Disney Plus

1. Innovation and Development

FORMAT: 25

Subject the above to VRIN analysis

Resource:1 of the Comments

nearest competitor

Valuable Instead of having their content located on other streaming services,

Disney plus have all their content located in a single place for its
customers to access.

Rare The firm doesn’t rely on content developed outside of their studios to
survive.

Inimitable Walt Disney company owns some of the most expensive intellectual
property in media. Competing companies can try and develop
content similar to Disney plus offers, but they won’t be able to offer
them shows and movies developed by Marvel, Pixar and Lucasfilm.
 Non-substitutable Disney has expanded the type of content that they can produce,
which means they can appeal to more consumers.

FORMAT: 26
Do the resources of the company form capabilities

1. A large number of users are accessing entertainment and other products and service
through digital channels. The user experience offered by platform marks the main
difference.
2. Netflix has already accumulated vast library of great quality content; it has also
continued to improve the user experienced through the use of algorithm.

FORMAT: 27
Do the resources of the competitor form capabilities

The resources of Walt Disney have allowed it to succeed in attaining and sustaining a
competitive advantage. Their capabilities lie in their ability design their shows, movies and
characters, storytelling in an efficient and productive manner.

FORMAT: 28
What rivalry can you anticipate between your company and the competitors to preserve
their respective resources?

Netflix is soundly beating its streaming rivals in subscribers, viewing time and library
content. Disney and other competitors have cut into Netflix’s share of viewer’s attention.

FORMAT: 29
Do SWOT Analysis for the business

Strengths Weaknesses
 Netflix have DVD rental by mail  The success of Netflix’s streaming
service with an anticipated 4 million content selection is heavily
subscribers. dependent.
 Netflix’s business model is based on  Most of their views are from
providing a reliable and enjoyable original programming, which is a
service that allows customers to risky strategy.
watch content whenever and
wherever they want.
 Netflix is the first video rental
delivery service that provides a flat
rate subscription plan.
Opportunities Threats
 Multilingual content development  Netflix is facing a strong competitor
 Evolution of product mix that has shown a lot of strength.
 The video streaming platforms
contribute 1% of the global carbon
emission.
FORMAT: 30
Develop two or three scenarios that may happen in the next 5-7 years. Describe the
scenarios…
1. Netflix plans to expand into the gaming industry by 2022 – Netflix is looking to hire an
executive to oversee an expansion into video games and may expand into gaming with a new
bundle for its subscribers. Netflix offering would consist of a mix of licensed Netflix
intellectual property and original work commissioned from independent studios offered to
existing Netflix subscribers could possibly be launched in 2022.

2. Netflix adding spatial audio support for iPhone, iPad – Netflix is rolling out spatial
audio support on iPhone and iPad devices for customers with capable headphones and the
latest operating system.

FORMAT: 31
What according to you is the Generic Strategy adopted by the firm.
 Cost Leadership- Netflix Inc.’s generic strategy is cost leadership, ensures
competitive advantage through minimized costs and, frequently, minimized selling
prices. This generic strategy enables the online entertainment company’s business
model’s competitiveness based on low costs and the corresponding ability to sell at
affordable prices, without necessarily being a best-cost provider. In this generic
strategy, Netflix broadly acquires more customers in the online entertainment market,
in contrast to focus strategies that concentrate on specific market segments. Netflix
uses its competitive advantages to reach more customers in the international market.
This broad approach of the generic strategy aligns with Netflix’s intensive growth
strategies, which prioritize market penetration. The approach relies on the company’s
business model and value chain, which satisfy customers partly through personalized
customizations, such as in mobile app settings. Through intensive growth strategies,
the cost leadership generic strategy for competitive advantage gains the biggest
market share, relating to Netflix Inc.’s corporate mission and vision statements, which
point to the strategic plan and goal of attaining and maintaining leadership in the
international online entertainment industry.
 Differentiation- Even though Netflix mainly applies cost leadership as its generic
strategy for competitive advantage, the business also uses differentiation in its
operations. As a generic strategy, differentiation involves developing the online
business and its products in ways that make them different from the competition.
Netflix develops its competitive advantage by producing its own original content,
aside from streaming content from third parties. The differentiation generic strategy
enables the business model to attract and retain customers, thereby supporting
intensive growth strategies for further expansion of the online operations.

FORMAT: 32
Map the business on the Strategy Clock
Hybrid companies offer products at a low cost but with a high perceived value building
customer loyalty. Netflix is currently following this strategic path, offering a significant
amount of exclusive high-quality content at low price. The success of Hybrid strategy
depends on the ability to deliver enhanced benefits at low price while gaining sufficient
profits for reinvestment to maintain and develop differentiation features.
The hybrid organizational system is due to the company’s operations involving on-demand
streaming of entertainment content, and the production of original content, such as movies
and series. The company is a strong example of how online business model provides the
capability for large-scale high-efficiency operations, while minimizing costs.

FORMAT: 33
What are the issues that the company is facing that needs to be attended to?

 Problem with password sharing: On a recent article it is said that, Netflix is

considering crackdown in this practice. While previously they were letting it happen,
as it gave their platform more exposure, and encouraged potential users to get to get
their own account. Recently Netflix have become concerned they are losing out due to
this behaviour.
 Increased completion: Netflix is facing increased competition from other companies.
Amazon prime in particular is continuing to increase the selection of its online
streaming selection as it enters into more partnerships with movie studios.

FORMAT: 34
What is the Generic Strategy/ strategy clock positioning the business should strive to
achieve in the future?
Netflix current generic strategy is low cost or over cost leadership. They use cost leadership
to ensure competitive advantage through minimized costs and, frequently, minimized selling
prices. Netflix provides its services at a price that is less than what any of the rivalries can
offer at that moment. Netflix joined the market with an objective aimed at providing services
at the lowest cost possible and enhanced efficiency.
FORMAT: 35
What functional strategies should the firm adopt to match the generic strategy
proposed?

Netflix’s competitive strategy is to deliver movies to consumers in the most effective and
convenient way possible. The product functional strategy employed by Netflix is in making
streaming video accessible to consumers both domestically and internationally. By partnering
with the makers of the various gaming consoles and mobile devices, Netflix users can access
movies and TV series from almost anywhere. Netflix will have to find ways to encourage the
users of DVD rentals to include or switch to viewing their movies via online streaming.

FORMAT: 37
Suggest what to do using Ansoff’s Matrix for future direction
Using Ansoff’s Matrix the strategic framework of Netflix can be designed to move beyond
business as usual. Ansoff’s Matrix will help Netflix to figure out which four strategic
directions should take to successfully grow your company.
Netflix use Market Penetration as the main intensive growth strategy in expanding its
business operations and multinational market reach. In the Ansoff Matrix, this growth
strategy involves selling more of the online company's streaming services in the markets that
the business already has.

FORMAT: 38
What M&As, collaborative tie-ups do you propose for the future to consolidate the
generic strategy/ new position on the strategy clock you are proposing
 To expand in West Africa more aggressively, Netflix partnered with Nigerian
filmmaker Mo Abudu, the owner of Ebony Life TV. This partnership will enable
Netflix to create new content targeting consumers in West African nations.
 Netflix recently partnered with Samsung to further integrate its streaming service with
Galaxy smartphones. In exchange, Samsung users will benefit from Netflix’s original
shows and special bonus content.
 Netflix has ramped up its expansion into anime originals by partnering with
six Japanese anime creators.

FORMAT: 39
Undertake a forced field analysis for option you are proposing

Vis-à-vis the first change you propose suggest

Forces for change Forces against change

Netflix has changed the business model
and strategy to survive and to achieve
competitive advantage. Netflix has
changed
HTTP to HTTPS encryption to ensure the
viewers privacy and also added “skip the
intro” option by which the customers can
skip the video.
The currently driving changes in the rental
movie industry are technology, the recession,
lower priced options. These changes are
unfavourable to Netflix, as they are expensive
and do not have what consumers are after.
FORMAT: 40
How can forces against the business be reduced/ neutralized

 Netflix maintain its ability to change through its organisational culture concept
freedom and responsibility. The company is also hiring the best talent, and reward
high-performer-weeding out continuous, unimproved low performers.
 The internal and external forces of changes in company handles the organisational
change force. The external force like technical change and globalisation of company
compels Netflix to change the feature. And in internal force Netflix realised that
watching the movie at home would reduce the entertainment budget and time
therefore they accepted the organisational change.

FORMAT: 41
Do a “Suitability, Acceptability, Feasibility” analysis for the option you have chosen

 Suitability: As business strategy changes, Netflix must stay focused on corporate

mission and vision in order to maintain strong brand equity and customer loyalty. In
order to be effective, business strategy must address the unique combination of
competitive position and industry maturity at any given time.
 Acceptability: Investors are vital for Netflix and potential losses and dividends are
the main evaluation criteria for Netflix share. The reaction of stakeholders to a
strategic change is important in order to evaluate the efficacy of the strategy.
 Feasibility: Netflix capabilities can sustain both hybrid and differentiation strategy:
technology and information resources at Netflix disposal put the company in a leading
position in the market. The only issue is related to financial resources but Netflix still
have cash to be invested in the short/medium term.