PROBLEM-SOLVING AND

RESEARCH METHODS FOR

MANAGERS
RBLP020L086A

NAME: AKHIL PAUL | STUDENT ID: PAU21535624

INTRODUCTION

Netflix is a streaming service and production company based in Los Gatos, California.

Founded in 1997 by Reed Hastings and Marc Randolph, Netflix provides access to a
constantly expanding movie and television library.

What sets it apart from its competitors is its collection of original TV shows, and movies,
tons of quality programs, and an easy-to-use interface.

Netflix has a collection of original TV shows and movies.

In the entertainment sector, Netflix, with over 15,000 content titles in several languages,
including award-winning TV series, documentaries, movies, and anime, is unrivaled.
 COMPANY ANALYSIS
What sets it apart from its competitors is its collection of original TV shows, and movies,
tons of quality programs, and an easy-to-use interface.

Netflix has a collection of original TV shows and movies. In the entertainment sector, Netflix,
with over 15,000 content titles in several languages, including award-winning TV series,
documentaries, movies, and anime, is unrivaled.

With an easy-to-use interface, Netflix provides high-quality programs and shows and it is
totally free from advertisements.

Each viewer's experience with the platform is unique, tailored to their viewing habits,
interests, and how they interact with the platform.

Offer a tailored experience using big data, Netflix is able to offer each of its 208 million
subscribers content that they want to watch. Apart from all this, the movies can be
downloaded offline.
 COMPANY ANALYSIS
In the last ten years, Netflix has become an influential brand not just in the US, but around
the globe for online streaming content.

Within a short period of time, Netflix became a household name. According to Interbrand,
Netflix ranks 36th in 2021, with a brand value of $15.0 billion.

With over 190 countries in its service area, Netflix is one of the most popular streaming
services in the world.

Over 167 million Netflix subscribers give Netflix strong bargaining power with studios when it
comes to securing exclusive content.
 SWOT ANALYSIS OF NETFLIX

STRENGTH WEAKNESS
Exponential Growth Growing Operational Costs
Brand Reputation Raising Prices
Global Customer Base Rigid Pricing
Originality Lack of Green Initiatives
Adaptability Increasing Debt
Award-Winning Shows

OPPORTUNITY THREAT
Low – Price Mobile Streaming Option Competitive Pressure
Expand Global Customer Base Government Regulations
Niche Marketing Market Saturation
Introduce Cheaper Annual Subscription Account Hacking
Refresh Content library Piracy
 PESTEL ANALYSIS OF NETFLIX
POLITICAL ECONOMICAL
01 Censorship has proven to be an issue
02 The fluctuating exchange rate affects its
economy when buying others' content.
Due to the government rules and policies, the
entire content of Netflix is not available in all The loyal customers of Netflix complain about a
countries and its viewers. steady hike in the subscription price.

SOCIAL TECHNOLOGICAL
03 The splendid work environment works in favor of
04 In Netflix, one can avail high-quality video with
the company. minimal data being spent

Netflix and its CEO are known for their generous The continuously changing algorithms often
nature, and their kind gestures have touched confuse the users.
people.

ENVIRONMENTAL LEGAL
05 The company's recent investment in joining hands
06 The sudden hike in subscription prices led the
with EPA showcases its willingness to shift to company to have a conflict with its customers
renewable energy.
The continuous copyright claim drives Netflix to
Other steps towards a sustainable Future include face issues with a small segment of its
reduced use of papers in the office. customers.
PROBLEM STATEMENT

In the first two quarters of the year, Netflix lost 1.2 million subscribers. In the second
quarter alone, there were a record 970,000 users.

PROBLEM STATEMENT - WHAT CAUSE NETFLIX TO UNSUBSCRIBE THE SERVICE ?

RESEARCH METHODOLOGY

Secondary data collection method was used to collect the data.

Population: Age group between 18-40, Male and female were included.
STRATEGIES BY NETFLIX
01
To stop the bleeding, Netflix is expected to launch a
lower-priced ad-serving version later this yea

02
Netflix has also announced a partnership with Ubisoft.

According to reports, Netflix has partnered with Ubisoft to

support its fledgling gaming business.
 FRAMEWORK FOR PROBLEM SOLVING
Mckinsey 7 steps process involves:

Define the problem

Disaggregate the problem

Priotizes the issue

Plan the analysis

Conduct the analysis

Synthesis the results

Communicate
01 DEFINE THE PROBLEM

WHAT CAUSE NETFLIX TO UNSUBSCRIBE THE SERVICE ?

02 DISAGGREGATE

In this step the problem should be break down into simple parts for easy understanading.

Customer attrition
Price Increase
Increased competition
Customer dissatisfaction
03 PRIORITISE

The problems should be prioritised so that it can be solved quickly.

The main problem which requires immediate solution is the loss of customers or customer
turnover.

04 WORKPLAN
Reduce the price
Provide high quality streamings
Increasing alliances
Latest episodes should available right away without keeping the customers
Library updates should be done more often
Selection streaming irrespective of the location.

Parties Involved: CEO, Sales and Marketing, Financial department, Technical

department, Customer success team.
05 ANALYSE
Think evidence:
Here the market should know that Netflix is custmer friendly and affordable.
Increase Market demand
It satisfies the customers expectations from a streaming channel.

06 SYNTHESISE

Customers will be getting Netflix subscriptions at affordable prices as well with all other
features which they were waiting for.

07 COMMUNICATE

By initiationg these strategies the client should understand that Netflix is thinking and
performing out of the box.
All the features at afforable price will make the customer choose Netflix
or switch from their competitors.
CONCLUSION

A smart strategy is all about doing what others can’t do.

Offering ads is hardly among them.

It makes it more difficult to distinguish Netflix from its competitors.

Despite the price increase and loss of funds, Netflix can go for much better strategies to climb
out of this hole.

According to an anonymous talent rep, Netflix should focus on marketing individual shows and
movies, improve the quality of its films and release some of them in theatres, and spread out
the release of episodes. Until then, Netflix is in trouble.
REFERENCES
ANDREWS, H., 2022. Netflix Falls to 4th Place in Streaming Services Customer Satisfaction. NERDBOT.

Andy, 2022. Pros and cons of Netflix – Is it still worth it. APPS.UK.

Anon., 2022. Full Marketing Strategy of Netflix Explained with Company Overview and Analysis.

Anon., 2022. Netflix SWOT Analysis 2022 SWOT Analysis of Netflix. BUSINESS STRATEGY HUB.

Arun, R., 2022. A Case Study on Netflix Marketing Strategy. SIMPLILEARN.

Bowman, J., 2022. Has Netflix Lost Its Competitive Advantage. THE MOTLEY FOOL.

Briefs, B., 2022. Why Is Netflix Changing Its Core Strategies. https://swarajyamag.com/analysis/whyis-netflix-changing-its-core-strategies.

Campbell, P., 2018. Here's how we tear apart Netflix's pricing. PRICING PAGE TEARDOWN.

Gleiberman, O., 2022. Netflix Lost Subscribers, But It Really Lost Something Larger — Call It Mythology.

jesse, S., 2022. Unsubscribe: A guide to Netflix’s price increase in your country. FILM DAILY. https://filmdaily.co/news/netflixs-price-increase/.

Kovach, S., 2022. Netflix finally admitted two things we already knew about the streaming wars. CNBC.

MANAGER, T., 2020. Netflix customer satisfaction dropped in 2020. https://techymanager.medium.com/netflix-customer-satisfaction-dropped-

in-2020-8a8ecf29d750.
THANK YOU