Competitive Policy for Netflix Inc- myassignmenthelp.com

Question: Discuss about theCompetitive Policy for Netflix Inc. Answer: Netflix, Inc. It is an American entertainment corporation established in 1997 and operates in the entertainment industry. They specialised in providing streaming media service and DVD by mail service. The organisations operate in more than 180 companies and generated revenue of US$8.83 billion in 2016 financial year. In their beginning, the company focused on providing DVD on mail facility, but their operations expanded with the introduction of streaming media facility, which gained Netflix an international spot. The reason for selecting Netflix is that company has a monopolistic advantage over its competitors such as HBO Now, Apple iTunes, hula or Amazon Prime Video. At their peak time, the companys internet traffic data amount to 37 percent in North America, which is higher than every other competitor combined, and they had more than 89 million active subscribers. Netflixs Strategy Netflix has updated their strategy to expand their stream media service over different countries. The company provides original as well as other sources content, to their subscribers. As of March 2016, the firm offers more than 1197 TV shows and 4335 movies to their users. The company is focusing on enhancing their services worldwide; they already have their operations in more than 180 countries. With the popularity of the home internet, Netflix has become an essential part of peoples life. Many video stores or DVD retail stores have closed due to the popularity of Netflix. In North America, the giant video rental service Blockbuster has been closed due to the popularity of Netflix (Adhikari et.al. 2012). As per Jenner (2016), in order to increase the number of users, Netflix focuses on improving their services before their competitors, like high-quality content (4K resolution), simple UI design, licensing more content and producing more original services. The company focus their resources on analysing the watching habits of their users and recommend content based on their preferences. They also analyse illegally downloaded TV shows and movies from torrents to learn about customers behavior in most European countries. This assists Netflix in enhancing their users base which is more than 89 million subscribers. Business Model Following are the key principles of Netflix business model which provide them a competitive advantage over its competitors: The company provide their services at an affordable price and also offer a large number of original and secondary content which gives them a competitive The original server produced by Netflix such as House of Cards and Stranger things are award winning and popular series, which attract a large number of their subscribers since their competitors cannot provide such shows. According to Abraham (2013), the video in demand facility provided by Netflix is more popular than television because users can watch anything they want at any time, unlike television shows. Netflix analyses their users watching habits are provided recommendations based on such preferences, which increase the watch time of users (Gomez-Uribe and Hunt 2016). CAGE Framework To enhance international operations, a company is required to analyse various cultural, administrative, geographic and economic factors of countries. As per Allen, Feils and Disbrow (2014), since Netflix provide internet streaming services, it is easier for them to provide facilities in different countries. Netflix has launched their services in India, Russia, Singapore and many others. They also manufacture domestic original content to attract customers in a particular country. Microsoft Corporation It is an American international technology corporation founded in 1975. It operates in software, hardware and customers electronics industry. The company serves their customers worldwide and had more than 114,000 employees. It had revenue of US$85.32 billion in 2016 financial year. The reason for choosing Microsoft is that more than 90 percent of worlds computer runs on windows, which is an operating system provided by Microsoft. Microsofts decision of acquiring LinkedIn for $26.2 billion dollars has been a significant step towards companys future growth by using LinkedIns data. Microsofts Strategy Microsoft provides various software, hardware, cloud based and electronics products to their customers. Apple and Google give a huge competition to Microsoft with their smartphone and other software services. The company has updated their strategies in the leadership of Satya Nadella, to increase their position in consumer electronics market. The intelligent cloud services of Microsoft provided them a competitive advantage over other companies since more than 70 percent of Fortune 500 organisations use Microsofts cloud based services (Wonglimpiyarat 2012). The company also give emphasis to merger and acquisition with popular acquisitions such as Nokia, Mojang Synergies, Skype, LinkedIn and many others. They merger their cloud services with acquisition companys services to improve their customer's experience. They are also focusing on virtual reality and virtual personal assistant technology with products such as Cortana and HoloLens (Pellegrin-Boucher, Le Roy and Gurau 2013). Business Model Even with high competition from Apple and Google, Microsoft has secured its place in the market. The company has introduced new policies in their business model to provide better competition. Following are the main features of Microsofts business model: Using the cloud based networks to provide services to companies and customers, such as Microsoft One Drive, Azure, and Outlook (DaSilva and Trkman 2014). Entering into new markets with consumer products such as Cortana, HoloLens and Surface Pro, which allow the company to gain competitive advantage. Microsoft is providing constant updates to windows and other softwares to add new features and improving the quality of software (Amit and Zott 2012). Collection of large consumer data resources from acquisitions such as Skype and LinkedIn, which allow them to formulate their future strategies according to consumers requirements. CAGE Framework For improving their worldwide services and resources, Microsoft evaluates different economic, cultural, administrative and geographic aspects of countries which assist them in formulating international policies. They acquire domestic companies to increase their operations, and they also provide their services to local companies. This strategy allows them to easily operate in various international markets (Chor and Manova 2012). References Abraham, S., 2013. Will business model innovation replace strategic analysis?.Strategy Leadership,41(2), pp.31-38. Adhikari, V.K., Guo, Y., Hao, F., Varvello, M., Hilt, V., Steiner, M. and Zhang, Z.L., 2012, March. Unreeling netflix: Understanding and improving multi-cdn movie delivery. InINFOCOM, 2012 Proceedings IEEE(pp. 1620-1628). IEEE. Allen, G., Feils, D. and Disbrow, H., 2014. The rise and fall of Netflix: what happened and where will it go from here?.Journal of the International Academy for Case Studies,20(1), p.135. Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Chor, D. and Manova, K., 2012. Off the cliff and back? Credit conditions and international trade during the global financial crisis.Journal of international economics,87(1), pp.117-133. DaSilva, C.M. and Trkman, P., 2014. Business model: what it is and what it is not.Long range planning,47(6), pp.379-389. Gomez-Uribe, C.A. and Hunt, N., 2016. The netflix recommender system: Algorithms, business value, and innovation.ACM Transactions on Management Information Systems (TMIS),6(4), p.13. Jenner, M., 2016. Is this TVIV? On Netflix, TVIII and binge-watching.new media society,18(2), pp.257-273. Pellegrin-Boucher, E., Le Roy, F. and Gur?u, C., 2013. Coopetitive strategies in the ICT sector: typology and stability.Technology Analysis Strategic Management,25(1), pp.71-89. Wonglimpiyarat, J., 2012. Technology strategies and standard competitionComparative innovation cases of Apple and Microsoft.The Journal of High Technology Management Research,23(2), pp.90-102.