MT203 Case Analysis Template

Running head: Week 5- CASE STUDY 1

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Case Assignment Lesson 5 Ranjan Shrestha Kings College

Capstone April 09, 2015

IntroductionNetflix is a movie seller or rental service provider company through internet which was formed in 1997 by Reed Hasting. The company formally starts its operation from 1997 by providing the rental service facility of the movies. They are the foremost company to provide such services which allows customers easy to watch the best movie by sitting at their own home and in their relevant time. In 1997 they started their rental service of DVDs. The company mailed DVDs to the members customers and after they complete to view the movies they have to return but the return is not forceful to the customer. After some years they also starts streaming services through internet subscription to reduce the cost which was incurred in postage and shipping of DVDs and one of the main aim to start the streaming service to provide modern service in digitalized form which help them change with the change in external environment. They have expanded their market in various countries and their total number of customers at the end of 2014 was more than 50 million. This case help to define the strategies used by the Netflix to sustain in the market and it also describes about the core competencies, resources, and capabilities of Netflix. Furthermore the case analyze about the competitive advantage gained by the Netflix, its production and operation process, its concern towards the people, process and product as well as its value chain.Q.1 Prospector, Defender, or Reactor Strategy?

As per my view, Netflix should use Prospector strategy. Prospector strategy is such type of strategy where the firms use dynamic programs and plans to grab the new opportunities and to expand into the new and prospectus market. Netflix should also focus on the recognizing of the new market to increase the market share and cash the new opportunities available in the market. Prospector strategy is the aggressive strategy among the defender and reactor strategy. Netflix have to focus on providing new service in the same product line. Focusing on innovation in terms of providing product and service is the base of long term growth of Netflix and also for the exploitation of opportunities available in the market. They have to further focus on streaming of documentaries, short movies, live event and historical event through the internet. They should have to expand their market to the other developed and developing countries along with the USA. They have lots of market development opportunities in all over part of UK, France, China, Australia, Canada, South Korea, New Zealand, Italy, and Russia and so on. Therefore Netflix should have to use Prospector strategy.Q.2 Answer

Netflix has proper human and technological resources and capabilities to do new innovation, more market expansion, and satisfy the customer to be the market leader for long time and it leads them to increase their competencies. Strong management, high brand recognition, and uses of modern technologies are the main resources of Netflix. Providence of quality service to the customer, effective use of latest technology, success to attract the worldwide customers, proper allocation of available resources, unique operational strategy, proper environmental adaptation, effective way of problem solving, appropriate decision making is the main capabilities of Netflix. They are offering better facility and skims to the customers, improving the internal network; provide service better than the competitors which are the main competencies of Netflix. Focusing on the providing the value to the customers is another core competency of Netflix. All these resources and capabilities help Netflix to increase their core competencies and bring to the strong position in the market. Because of these resources, capabilities and core competencies they have able to focus on teamwork, makes differentiation on product and style of providing service, lower fixed costs, gain higher marker growth which are the main base of the huge success of the company. They always focus on retaining the subscribers and increasing the number of subscribers by providing service as per the preferences of customers which help them to uplift in the ladder of success.Q.3 Answer

Netflix always use to focus on three functional concerns i.e. product, people and processes. They first launch rental service of DVDs through mail. After that they started streaming service through internet. After 2010 they also launched their service in the gadgets (mobile phone or smart phone and tablets) also which help the customer to watch their favorite movies from any plane of the world where the internet facility is available. First they only target on providing commercial movies but later on they also starts to provide other category of movies and programs also. Netflix major concern is to deliver the movies as per the choice of the customers. They know that without customers are the foremost things to get the high level of success and long term sustainability. They are also empowering their employees through the conduction of several motivational programs. Netflix is treating the customers and employees as valuable assets of the company. They are applying simple process to deliver the service. Customer can watch their desired movies in their relevant time. The service providing process of Netflix is first the customers mail to the company by paying some subscription charges and then the company sent them mail through shipment or through streaming service (internet). The use of service will be as per the choice and convenience of customers. The production and operational activities are very effective and they are always concern to minimize the errors so that they are getting high level of success and increasing the value of company.Q.4 Answer

The main Netflixs competitive advantages relative to its value chain are as follows: Netflix inbound logistics is very good. They are integrating with the movie makers for the fast availability of the movies to the customer. This strategy helps them to gain the competitive advantages. The supply chain activities of Netflix are well managed. The supply of movies, processing and distribution of movies to the customer is very fast. It is another source of competitive advantage achieved by the Netflix.

Netflix is the recognized brand in the world so that it makes them easy to promote their service and product. They are the leading company to sell the movies through the internet. Netflix is mainly a service oriented company so that they always concerns with delivering fast and proper service to the customer and the unique way of providing service help to build the competitive advantage.

Netflix has well managed infrastructure. They complete their task in time. They always focus to use the latest technology to deliver their product and service. Human resource management (HRM) is the key concern for the Netflix Corporation to gain the competitive advantage and to maximize the value of the company. the coordination between top level management and employees are very good and the company is providing flexible working hours to the employees and the employees are highly motivated. Netflix Corporation performs its all task through the computer system. All processes are fully automated so that they are getting competitive advantage.Conclusion Netflix always remains in the top of the market for the reason of the effective way of analysis and assessment of companys internal and external environment, as well as by the approach of value chain analysis. Netflix have to drive further by increasing the strong point and reducing the weaknesses. Similarly they must have clutch the existing market opportunities and formulate effective strategy to grab the future market opportunities and threats have to be diminish by the way of proper assessment of external surroundings and proper implementation of the strategies. They should have to always focus on product, people and process for their long term success. They must have to more concentrate on proper utilization of resources, increment of the capabilities to maximize the core competencies and to get competitive advantages.References:http://www.helpme.com/netflix/case-analysis-view.asphttp://www.macspotlight.org/netflix/company_history.htmlhttp://www.netflix.com/operations and production/ us/en/our_story.htmlhttp://wordpress.com/2014/03/12/value-chain-netflix.html/