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Team 5

Bingxiao Mei
Cory Lueth
Florence Epa
Jeffery Pike
Taylor Owens
Xin Qi

Background
The company was established in 1997 and is
headquartered in Los Gatos, California. It started its
subscription-based service in 1999. By 2009, Netflix
was offering a collection of 100,000 titles on DVD and
had surpassed 10 million subscribers.
It provides DVDs and can be streamed through PCs,
TVs, iPads and iPhones to watch movies and TV
shows.

Issue Statement
Netflix has had great success in the national market
and is working on expanding into emerging markets
and become a multinational corporation (MNC).
There are some countries that are familiar with the
Netflix Brand and have an existing industry with
competitive companies and then there are those that
have not.
The Issue of what Global Strategy that Netflix
decides to adopt is a crucial one especially if they are
seriously considering becoming the number one MNC
in their industry.

External Analysis - Industry Overview


CATV (Community Antenna Television) Systems
Industry
Created in 1948 by Ed Parson of Astoria, Oregon, also
known as the Cable Industry
Evolved throughout time

External Analysis - Five Forces


HIGH POINTS
Product Differentiation/Substitution
Structural Features of Buyers and
Suppliers
Switching Costs

Internal Analysis - Resources


Tangible Resources
Physical: Moderately sustainable headquarters in CA
Over 50 DVD distribution centers
Financial: Domestically can generate $8.4 billion in revenue
Stock price increased 219% to $175.7 in 2010
Technological: Compatible devices support Netflix stream
Production: Apple , Amazon, Android
Software: Windows, Linux
Others: Video game consoles, Set-top Box, Blu-ray Disc players, TV
Intangible Resources
Culture: Allow creators Deviate from traditional format, Varying run times, eliminate the
recap, non-fixed season
Customer Loyalty: Expand Internationally into 31 countries and regions
Innovation: Trade secrets, patents, copyrights. DVD-by-mail to streaming. $1 million
algorithm

Internal Analysis - Capability


Value Chain Management
Human Resource: intense work atmosphere, Brainstorming
R&D: streaming on PC, MACS, Gaming consoles
sales marketing: Word-of-Mouth, Cancel online anytime
Customer Service: Rank the movies, Easy and free shipping, Hassle-free
VRINE
Valuable: Constantly increasing
Rare: unique technology, House of Card
Imitable: Barely imitable
Non-substitutable: R&D cause non-substitutable
Exploitable: Search new markets, expand value and products

Strategic Challenges
Industry Opportunities
Industry Threats
Firm Strengths
Firm Weaknesses

Recommendations
Business-Level Strategy
Continue best-cost strategy
Implement transnational strategy globally
Corporate-Level Strategy
Diversification through strategic alliances with
foreign filmmakers to create Netflix Original Series in
international markets

Implementation
Option 1: Continue similar business practices on a global
scale. Continue best-cost.
Option 2: Develop new avenues of live broadcasting and
news services.
Option 3: Create original series for every region. Creating
global partners.

Conclusion