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NETFLIX Strategic Analysis - Research Paper Example

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Summary
People love contents on television and they watch hours of linear TV, however, they do not like the linear experience where channels present certain programs at particular times of the day on non portable screens (Hitt, 2008). Currently, the evolution to internet TV applications…
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NETFLIX Strategic Analysis
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NETFLIX STRATEGIC ANALYSIS al Affiliation) Forecast Major changes that can be expected People love contents on television and they watch hours of linear TV, however, they do not like the linear experience where channels present certain programs at particular times of the day on non portable screens (Hitt, 2008). Currently, the evolution to internet TV applications has began where the world’s leading linear television networks like BBC, ESPN, and HBO are moving into internet TV (NETFLIX, 2014). Arguably internet TV is better that linear TV and this is expected to grow and replace linear TV because the internet is getting more reliable, faster, and more available. Smart televisions are getting better and every TV will eventually have Wi-Fi and applications, and will eventually be cheaper.
Netflix continuously increases its global internet network as a result of the growth in technology. The company is expected that the company will in future offer more movies. It may also react to the expected increase in demand from customers by coming up with its own movie production company in order to have a variety of movies.
What do you expect the firm’s position to be in 5 years?
The company has invested in marketing in order to attract people around the world to try Netflix. The company anticipates to spend approximately $500M in 2014 on marketing and $ 400M on technology development in order to improve its services. Considering these initiative, the company’s position in the next five years will be able to increase its market share because it is expected that the company will dominate the television show streaming and has a strategy of expanding quickly in order to stay profitable at a global basis (Hill, 2012). The company will be able to compete with companies like Google with its chrome.
Bibliography
Hill, C, & Jones, G. (2012). Strategic Management Cases: An Integrated Approach.
Hitt, M. Et Al(2008). Strategic Management: Competitiveness and Globalization, Cases, Volume 2. Cencage Learning.
NETFLIX. (2014, 07 26). Netflix Long Term View. Retrieved from NETFLIX: http://ir.netflix.com/long-term-view.cfm Read More
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