Case Study: Netflix

Introduction

Netflix is an American over-the-top content platform and production company headquartered in Los
Gatos, California. Founded in 1997, the company's primary business is a subscription-based streaming
service that offers online streaming of a library of films and television programs, including those produced
in-house. As of July 2023, Netflix has over 220 million subscribers in over 190 countries.
Netflix is a popular streaming service that has revolutionized the way people watch movies and
television shows. The company was established in 1997 in California and initially provided online DVD
rental services. However, ten years later, Netflix introduced online streaming services, which allowed
members to instantly watch television shows and movies on their personal computers. Today, Netflix is a
subscription-based streaming service that allows members to watch TV shows and movies on an internet-
connected device.

Company Background
Netflix is a leading streaming service that offers a library of films and TV shows to subscribers. Netflix was
founded in 1997 and has over 220 million subscribers in over 190 countries. Netflix is known for its
innovative technology, focus on customer satisfaction, and high-quality content.

The Situation

Netflix was primarily a DVD-by-mail service. However, in 2007, the company began offering streaming
video content. Netflix was one of the first companies to offer streaming video content, and it quickly became
the leading streaming service in the world. Netflix has revolutionized the way people watch movies and TV
shows, and it has made it possible for people to watch what they want, when they want, and where they
want.

Today, Netflix is facing increasing competition from other streaming services, such as Disney+, HBO Max,
and Amazon Prime Video. However, Netflix remains the leading streaming service in the world, and it is
well-positioned to continue to grow in the future.

Statement of the problem

Netflix is facing increasing competition from other streaming services, such as Disney+, HBO Max, and
Amazon Prime Video. In addition, Netflix is facing rising costs, such as the cost of licensing content and the
cost of producing original content.
Objective
 Examine Netflix's current status.
 Identify the challenges and opportunities facing Netflix
 Create suggestions for Netflix to maintain its competitive advantage and increase the
number of subscribers.

Objectives
The objectives of this case study are to:
 Identify the key challenges facing Netflix.
 Analyze the company's current strategy and identify areas for improvement.
 Develop recommendations for how Netflix can maintain its competitive advantage and
continue to grow its business.
Areas of Consideration
Manpower (People)
Netflix has a workforce of over 11,000 employees. The company needs to ensure that it has the right
people in the right positions and that its employees are well-trained and motivated.
Materials
Netflix's main material is content. The company needs to ensure that it has a wide variety of high-quality
content to offer its subscribers. Netflix also needs to ensure that it is able to license and produce content at
a competitive cost.
Methods
Netflix uses a variety of methods to operate its business, including content distribution, data analytics,
and recommendation systems. The company needs to ensure that its methods are efficient and effective.
Machinery
Netflix uses a variety of machinery in its operations, including servers, networking equipment, and
streaming devices. The company needs to ensure that its machinery is well-maintained and up-to-date.
Mansion (referring to the building / physical structure)
Netflix has a number of offices and data centers around the world. The company needs to ensure that its
facilities are secure and that they meet the needs of its business.
Management
Netflix has a strong management team with a proven track record. The company needs to ensure that its
management team is effective and that it is developing new leaders for the future.
Alternative Courses of Action
1.Continue to invest in original content
Advantages:
Original content can help Netflix to stand out from its competitors. can be more profitable for Netflix than
licensed content. And can help Netflix to build a loyal customer base.
Disadvantages
Producing original content can be expensive and risky. Netflix may face competition for talent from other
streaming services and media companies. And needs to ensure that its original content is high-quality and
relevant to its global customer base.
2. Expand into new markets
Advantages:
Expanding into new markets can help Netflix to grow its subscriber base. can help Netflix to diversify its
revenue stream. And can help Netflix to build a global brand.
Disadvantages:
Expanding into new markets can be expensive and challenging. may face competition from local streaming
services and media companies in new markets. needs to ensure that its service is localized for each new
market.
3. Offer new pricing tiers
Advantages:
Offering new pricing tiers could help Netflix to attract new customers who are price-sensitive or who do not
need all of the features that Netflix currently offers. could help Netflix to increase its revenue. And could
help Netflix to expand its reach to new markets.
Disadvantages
Offering new pricing tiers could cannibalize Netflix's existing pricing tiers. could make it more difficult for
Netflix to compete with other streaming services that offer simpler pricing structures. And could make it
more difficult for Netflix to retain existing customers.
Recommendations
We recommend that Netflix continue to invest in original content. because it is a way for the company to
tell its own stories and to reflect the diversity of its global customer base. Netflix has produced original
content in a wide range of genres and from countries all over the world. This helps to make Netflix a more
inclusive and welcoming platform for everyone. And to maintain its competitive advantage and grow its
subscriber Continue to invest in original content, but focus on high-quality content that will appeal to a
global audience. Expand into new markets, such as Africa and Latin America. Offer new pricing tiers, such
as a mobile-only plan or a plan with fewer features. Partner with other companies, such as
telecommunications .
Bibliography

Netflix website: https://www.netflix.com/

Netflix Investor Relations website: https://ir.netflix.com/

Statista: https://www.statista.com/

Variety: https://variety.com/

The Hollywood Reporter: https://www.hollywoodreporter.com/