ACADEMIC TASK – 1

GROUP DISCUSSION-CASE BASED

MGNM-578

REPORT ON
NETFLIX INTERNATIONAL EXPANSION

SUBMITTED TO-
DR. POOJA KHANNA

SUBMITTED BY-
RASHIKA GUPTA: A29-12210020
Q2247

Mittal School of Business

LOVELY PROFESSIONAL UNIVERSITY
 TABLE OF CONTENTS

Serial No. TITLE PAGE No.

1. INTRODUCTION 3-4

2. NETFLIX INTERNATIONAL EXPANSION 5

STREAMING
3. MARKET REPRESENTATION 6-8

4. ANALYSIS OF THE ISSUE 9-11

5. EFFECTIVE SOLUTION/STRATEGIES 12-13

6. CONCLUSIONS 14

7. REFRENCES 15

Mittal School of Business, MBA2022 Page 2

 INTRODUCTION

➢ Netflix is an American based web-based streaming media supplier of movie and TV

programs.

➢ Netflix was instituted in 1997 by reed hasting and marc Randolph in Scotts valley,
California.

➢ Netflix is a subscription-based streaming provider that allows our contributors to

watch TV suggests and movies besides advertisements on an internet-connected
gadget.

➢ Netflix it is in January 2016, it expanded to an additional 130 countries and then

operate in 190 countries.

➢ Hasting planned to chase completely licensing agreement to grow its content for
subscriber and expand business internationally in order to be maximizing profit and
growth.

➢ In 2021, Netflix was classified as the 8th most trusted brand worldwide by morning
consult.

➢ In 1999 Netflix started out providing an on-line subscription provider thru the Internet.
Subscribers selected movie and television titles from Netflix's Web site; the indicates
had been then mailed to clients in the structure of DVDs, alongside with pay as you go
return envelopes, from one of more than 100 distribution center.

➢ Netflix then expanded beyond the United States via presenting the streaming-only
sketch in Canada in 2010, in Latin America and the Caribbean in 2011, and in the
United Kingdom, Ireland, and Scandinavia in 2012. By 2016 its streaming provider was
once available in greater than a hundred ninety countries and territories.

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➢ Netflix is a high instance of an agency that has efficiently expanded its operations
internationally. Starting out in simply one country, the United States, Netflix has
extended into over 190 nations in just seven years.

➢ Netflix is headquartered in Los Gatos, California, in Santa Clara Country with the two
CEOs, Hastings and Ted Sarandos, break up between Los Gatos and Los Angeles.

➢ Netflix accompanied a very properly structured international approach via planning

their mission statement which is primarily directed to quit users. “For 1 low down
monthly price, Netflix individuals can watch over as a good trade as they want, anytime,
anyplace, on almost any Internet-connected screen.

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 NETFLIX INTERNATIONAL EXPANSION
STREAMING

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 MARKET REPRESENTATION

Netflix is a top instance of an agency that has successfully extended its operations
internationally. Starting out in just one country, the United States, Netflix has accelerated
into over 190 international locations in simply seven years.
Despite the modern-day challenges Netflix is dealing with regarding new subscribers, the
employer managed to efficiently amplify globally due to careful planning and execution.
This article will explore three key areas that helped the streaming provider attain success

1. Market choice
2. The Role of Data and Localization.
3. How the business enterprise overcame Challenges.

1-How Netflix Carefully Chose Its International Markets-

When coming into into new countries, Netflix firstly chose its subsequent markets primarily
based on similarities, to restriction manageable cultural and geographical challenges.

Canada- One of the international locations Netflix first considered for its global growth was
once Canada. This was once because the market was very similar to the United States in
terms of culture, language, and geography. This made it easier for the organization to
enlarge into Canada and tailor its content choices to swimsuit this new market. Netflix
formally launched into the Canadian market in September 2010, kickstarting its first foray
into international markets. Pricing was once a vital consideration to win market share and
the preliminary subscription rate was once priced at $7.99 per month, which Netflix CEO
Reed Hastings referred to as "the lowest, most destructive value we have ever had
somewhere in the world." This used to be a major scheme as part of Netflix's business
figurine to attract consumers immediately. The choice of Canada proved to be an
outstanding success for Netflix. It exemplifies how deciding on a similar market to your
domestic use can be an easy first step in your global expansion plans.

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Latin America & The Caribbean- the world's biggest Internet film and TV collection
subscription service, is arriving in Latin America and the Caribbean, presenting
immediately and unlimited movies and TV shows streamed from Netflix to
computers, game consoles and different Internet linked gadgets for a single low
monthly price. Netflix launched nowadays in Brazil and will be launched in forty-
three nations in Latin America and the Caribbean via 12 septs. With more than 25
Mn participants in the U.S. and Canada, Netflix deals amazing suitability and
remarkable value with a broad variety of Hollywood, international and local
movies, and TV series to pick from. Netflix has modernized entertainment in North
America by giving people a choice to instantly delight in what they want to watch,
when they intend to watch it for a minimal monthly charge over a wide range of
Internet-linked devices, such as pcs, game consoles, and smart Televisions.

Europe- Netflix developed a gorgeous strategy in relation to its international

expansion based totally on its choice of content material in new regions. "They
begin with a small plan that does not fee them lots of money and take down their
risk. Then they gather exceptional facts about what people enjoy, and
programming and investment round customer conduct are organized," according
to Christof Baron, CEO of the world marketing company Mindshare. In the UK, they
commenced with content from the BBC, Channel 4, and ITV to achieve preliminary
traction and then began to evaluate the kind of content human beings truly
enjoyed.

2- The Role of Data and Localization-

➢ Take things slow

➢ Language Consideration
➢ Personalization algorithms
➢ Original Content

3-How the business enterprise overcame Challenges-

➢ Growing competition- Apple TV+, Disney+, and HBO Max account for surely all of
Netflix's losses in international demand share for original content over the final two

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 years," they said. "The globe's prominent streamer confronts extra extreme opposition
than yet set out in 2022.

➢ International growth- As of the starting of the second quarter of 2022, Netflix has
round 222 million global subscribers in over 190 countries making the commercial
enterprise a high-quality success. The Netflix world expansion ride into over 190
international markets is an extraordinary success.

➢ Content Fragmentation-It is content fragmentation is a media distribution strategy

focus on over collection of content they are designed focus audiences its content
material fragmentation may want to be applied to distinct sort of media, such as song
streaming pad casts, eBook, articles. The purpose of create a range of platform that are
laser focused on a specific kind of video content.

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 ANALYSIS OF THE ISSUE

Swot Analysis of Netflix: -

Internal strategic factors

➢ Exponential Growth: - in the past ten years, Netflix has turn out to be an influential
brand for online streaming content material no longer handiest in the US however
international
➢ Brand Reputation: - Netflix has risen to become a family call inside a quick length.
In 2021, in step with Interbrand, Netflix ranks 36 – with an emblem fee of $15.zero
billion.
➢ Global Customer Base: –Netflix is serving over 190 nations across the world, having
a worldwide patron base. There are over 167 million subscribers of Netflix, and it offers
the company a robust bargaining energy with the studios for securing unique content.

➢ Originality: -any other one in all its energy is that Netflix has been generating unique
content over time with the highest high-quality. a number of its shows like Tiger King,
Stranger things, cash Heist, Narcos, Mindhunter, and Orange Is the brand-new Black
became so famous that its subscriber matter kept growing over the quarters.

➢ Adaptability: - Netflix adapted to various technologies instantly by providing

streaming on all internet-connected devices like personal computers, iPads, mobile
devices, and televisions. Due to this, their business grew immensely over the years.

➢ Customer – Centric Service: - For a long time, clients have been seeking out an
offline choice to watch Netflix content material, in case of travel (plane, subway)
or bad net connection. As an end result, Netflix delivered a download now
(offline) function for customers to observe their favored indicates on the pass.

➢ Affordable Pricing:- Netflix has given it leverage over its competitors. The plans
that Netflix has designed are low-cost and provide tremendous fee. Subscribers can
watch unlimited movies, both on DVD or streaming for an low priced rate of $8. ninety
nine a month. it's miles much less costly than cable movies or going to the cinema

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 and additionally offers a much broader selection. For a better satisfactory ultra-HD
(4K+HDR) streaming, subscribers can even get premium plans at $15.99 in step
with month.

External Strategic Factors

➢ Competitive pressure– Netflix can provide a lower-priced choice
to trap and hold subscribers in global market. Netflix has
been testing a less expensive cell-simplest plan in India
that costs simplest $three/month. it can expand this decrease-
priced option globally to compete extra efficiently in opposition
to cheaper options like Disney+, Apple+, Peacock, and so on.

➢ Government Regulations – Google, Amazon, fb, and

many other provider providers make billions in sales from ads. Netflix
can raise its sales by means of adopting an advertising-based on.

➢ Piracy– With this type of big modern-day subscriber base, Netflix

can tap into many other international
locations and extend its offerings and subscribers. they are able to start
to goal the countries where it's far presently no longer to be had. lately,
Netflix increased its operations and brought some greater nations on its
operation list. however, it's far nonetheless unavailable in China, Crimea,
North Korea, and Syria.

➢ Market saturation- it is able to increase its content material licensing

with the aid of increasing the contracts with numerous movie vendors.
additionally, Netflix need to refresh its content library as it's miles now
producing its unique content material.

➢ Account Hacking: - it is able to increase its content

material licensing with the aid of increasing the contracts
with numerous movie vendors. additionally, Netflix need to refresh
its content library as it's miles now producing its unique content material

➢ Carbon Emissions producing region-specific content in their local

languages is likewise another huge opportunity for Netflix. niche
advertising has been confirmed useful for Netflix. as an example, it
began an unique tv collection ‘Sacred games’ in India, and Spanish
collection ‘l. a. Casa de Papal, which might be large hits.

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 ➢ Government pressure due to capacity issues: - on every
occasion Netflix releases new or fresh content, users will often pay
for one month simplest and binge-watch all
their favorite indicates inside a brief duration. Netflix loses a variety
of revenue because customers can cancel their subscription when
they have gone via all the new content, without any penalty.
The corporation can increase its sales through introducing an
annual subscription with discounts to encourage month-to-
month subscribers to switch to every year plans.

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 EFFECTIVE SOLUTION/STRATEGIES

➢ Netflix has a strategy long time method of presenting its subscribers with a
wide range of DVD titles. obtaining new content material is an essential
system for the business enterprise as its clients are usually looking forward
to for it. This requirement compels to growing relationships with video
producing companies. The business enterprise offers its subscribers with a
list of television indicates that could hobby them. it has evolved a internet
site and alertness which permits to scroll thru the DVD listing. The company
has traditionally used the approach of speedy mail DVDs delivery, and it has
also increased the availability of its content through streaming.

➢ Netflix especially values marketing, and its far part of the strategy used to
harness a bigger marketplace proportion domestically and internationally.
The corporation has spent thousands and thousands of dollars on
Netflix brand advertising plan in reason to
create consciousness amongst new capacity subscribers the world over.
The business enterprise has additionally focused on selling the content
material streaming kind as it goals at putting off the
email transport provider.

➢ Netflix has the conceivable to upward shove lower back to its management
role in the amusement industry. The downfall of the company began when
the CEO developed a novel strategy for streaming content material and mail
shipping expenses increasing. The company must investigate creating a
commercial enterprise approach that attains consistency for the subscribers.
Sudden adjustments and increments in the fees of subscription services must
be avoided by using all means.
➢ The organization also focal point on offering its merchandise beneath one
website and brand. Netflix is a popular company that can make excellent
income if the fee is saved at a competitive level. It has misplaced its glory at
the nearby market due to the fact of lack of consistency, however it can

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 regain reputation if it follows the people’s will. The agency must take
direction into identifying the desires of the American human beings to
strengthen dominance in the market. Shifting in the worldwide market has
proved to be a tense venture that does no longer warranty profits.
Competition in the market is quite stiff, and most profitable corporations are
the ones working together with strategic partners. In the TV leisure industry,
the ability to proceed growing the suggests and films available for
subscribers is crucial. It is additionally important to proceed diversifying the
nature of the services provided to subscribers faster than the rival
companies. Netflix centre of attention on venturing into enterprise methods
to reduce economic liabilities.

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 CONCLUSION

➢ Netflix has been extraordinarily successful in maturing and developing to

evolve to the converting desires of clients through the years. while their unique
DVD-with the aid of-mail business model turned into effective in opposition to
competition inclusive of Blockbuster, the upward thrust of internet streaming’s
popularity intended they needed to alter. The comparison to Blockbuster is
important, as they have been a enterprise that failed to adapt and didn’t
foresee the impact the internet could have at the movie condominium industry
Kell Murray Netflix become then able to gain patron loyalty through imparting
matters Blockbuster didn’t, such as no past due charges and handiest desiring
to go to the mailbox to get the DVD while the recognition of on-line streaming
grew, Netflix embraced the alternate and used it to their advantage to turn out
to be the enterprise they are nowadays.

➢ Netflix is a rare instance of a company doing the entirety right. From their branding
and content material proper right down to their enterprise model and product,
the enterprise has usually excelled at
making clever, strategic decisions

➢ large marketplace percentage and awareness at the numbers, Netflix

has controlled to expand a deep understanding of their audience that very
few others have. This understanding, paired with a robust, lower priced product,
there’s no restriction to what this logo can do inside the future.

➢ the first-rate integrated advertising and

marketing and communication corporations in Gurgaon for high-
quality advertising strategies among one-of-a-kind marketing systems.

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 REFERENCE

➢ https://en.wikipedia.org/wiki/Netflix_(disambiguation)

➢ http://netflixcasestudy.blogspot.com/p/conclusion.html#:~:text=Netflix%20has%20be
en,they%20are%20today.

➢ https://ivypanda.com/essays/netflix-companys-strategy-issues-and-
solutions/#:~:text=Netflix%20Company%E2%80%99s%20Strategy%2C%20Issues%20a
nd%20Solutions%20Case%20Study

➢ https://ivypanda.com/essays/netflix-companys-strategy-issues-and-
solutions/#:~:text=The%20top%20priority,the%20company%E2%80%99s%20case

➢ https://www.prnewswire.com/news-releases/netflix-arrives-in-latin-america-and-the-
caribbean-129254198.html#:~:text=With%20more%20than,and%20smart%20TVs.

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