Netflix company indeed is a component of an entertainment marketplace for home videos. Substantially, it is forming the broader industry in the entertainment that possesses market such as airline, theatre video entertainments, and hotel. Commonly, Netflix organization is majorly recognized for instigating streaming media and internet delivery. Nevertheless, the company has inaugurated a plan which permits their clients towards accessing DVDs produced through various online platforms (Dias and Navarro 2018, p.32). The strategy similarly allows customers towards extending customers periods of rental exclusive undergoing extra costs. Ultimately, Netflix company puts more focus on enhancing buyers’ accessibility towards a wider variety of services for entertainment. The company persistently hunts for the preferences of their customers. The approach is boosting subscribers’ capacity who are yearning to order the services of Netflix. For the past years, the Netflix has recurrently expanded its services basing its capability on consumers’ preferences.
Netflix company provides services to most of the in-house clients via its various channels. It offers its services at limited fees that greatly attract multiple customers to make use of the facilities. Subsequently, the organization has partnered with some of the more significant film distributing firms by way of the agreements of sharing revenue. This has assisted in boosting its movie libraries owing to the fact there has been steady growth for consumers’ preference. In the year 2003, the company acquired multiple subscribers. Besides, the share prices were above 50 percent, which was higher than the IPO (Initial Public Offering) (Elkins 2018). In 2007, Netflix company adjusted its services on media streaming with the intention of catering for dynamic choices for consumers. For that matter, most of the distributors of the film became thrilled through this notion. Netflix attained massive growth in its profit during that time.
The project intends to look into how Netflix carries out its international service management to continue offering efficient services to their consumers globally. Presently, Netflix organization has been rated as the leading global internet television network. In reality, it the company has approximately thirty million members streaming its videos internationally. Besides, customer’s population has been increasing for the past periods. The company’s services are disseminated towards several nations worldwide, therefore, creating vast profits. On top of putting more focus on global growth in business, the company is similarly focusing on the rental selection quantity. Mostly, the broader title selection makes Netflix be in a position of maintaining and attracting more clients to continue using its products. Lately, Netflix company acquired and supported collaborations with significant studies like Warner Bros, Walt Disney, and Paramount. These partnerships with televisions and movie producers give Netflix opportunities towards incorporating broader movies and television selections. Nevertheless, Netflix company has been following various policies of the government like the act of video privacy policy that prohibits video the services of videotape providers from revealing data of their clients exclusive of their consent (Elkins 2018). The process safeguards their privacy rights.
Following the modernization of the act of video protection privacy, all the members using Netflix services were permitted to share their streaming media with their friends through Facebook. For that matter, the process has been decreasing the cost of marketing which Netflix uses annually. Eventually, the company has differentiated its services alongside establishing an organization referred to as Original series. The acquisition of content licenses from the producers had become quite expensive for the company. Presently, Netflix Company is focusing on producing more produced initially shows. Netflix has been standing firm with the notion of that internet TV shall be significantly utilized by the future generation. Nevertheless, the rentals of DVD operations within Netflix organization experience steady degeneration when compared to the past periods. Netflix has been having fierce competition arising from other firms like Coinstar, Google, Verizon, HULU, Amazon as well as Apple (Keko, Prevo and Stremersch 2018). These companies have created strategies aimed to reduce service costs provided to the customers. Therefore, brings about unfavorable outcomes on business growth for the Netflix.
In spite of plethora challenges Netflix is experiencing within its operating environments, the company has persisted to fair excellently thus reaching many consumers globally. Besides, Netflix similarly suffered various financial predicaments in its daily operations. However, these problems reduced at the time it benefitted from the IPO. Netflix succeeded in raising approximately $84 million which enhanced the company’s strategies on advertisement as well as its product diversification with the intention of reaching a broader range of prospective clients. This provided an organization an advantage over other firms. Besides, it enabled Netflix to attain marginal benefits accrued from its product sales. It has similarly promoted the company to survive various instances of insolvency. The money also allowed the company to settle several debts which it has been having for the past period. The signing of agreements on revenue sharing is similarly regarded as an element which leads to the company’s success in its operations of movie marketing. The act made Netflix to spread its operations and increase its customer base. This led to an increment of several subscribers which created the way of various services for to take care of the consumer needs which have been changing over the past period.
Literature Review
For the preliminary phase of the company’s development, Netflix similarly took into consideration different environmental factors impacting on the product marketing. For example, it was noticed that several clients using Netflix DVDs indeed were younger population. On the other hand, the senior members were having a lower possibility of buying the company's products. Consequently, the management devised advertisement approaches which promoted greater coverage for as compared to elderly generations. Another factor which was considered for its international management of services is formulating techniques of enhancing movie sales which influenced technological use as most of the youths are prone to using the internet. They were able to stream various movies produced by Netflix via the internet. Low technology advancement was registered in some parts of the country which were deemed to be a prospective hub for products sold by Netflix. Marketers were not capable of reaching a wide variety of customers owing to lower levels of information as well as technologies for communication available. As a result, several movies and DVDs were not sold efficiently due to user’s inability towards comprehending functionalities of various techniques which were utilized by the company in its production.
Business Innovation Model
As said by Sauer (2018), there is not a single business which becomes successful just chance. Firms which are innovative have often proven to be successful in their operations. These firms have methodologies and practices which assist them in either creating products within the newly acquired markets or instead of changing their games in old marketplaces. The significant dominant instances for these frameworks indeed is the process of business model innovation, which they employ. They use pure business model innovation. The model used follows the steps outlined below:
Comprehending the markets. According to Daidj and Egert (2018, p.36), these firms look for the market which is existing as well as various assumptions made by the consumers in such markets. They investigate what other firms surviving in such marketplaces are doing. They similarly study how conventional wisdom is constraining business operations within such industry. Upon understanding the markets, the companies take off with their plans of further developing the market to create more customers. Challenging the market- after the companies have learned various constraints which influencing the business, such firms take the responsibility challenging such constraints. Besides, they flip the problems the markets face into becoming new approaches of doing things.
Listen to customers feedbacks. According to Daidj and Egert (2018, p.34), it is not that every notion which a firm possesses is accurate. Additionally, nor all business innovations are valuable avenues. This is the place in which processes such as consumer testing and minimum viable products are used. Thus, it is imperative to the companies to listen to various feedbacks coming from the consumers. The process has seen Netflix improve day by day as most of the time, feedback from the consumers are used to enhance the service delivery.
Changing business model. As noted by Helfat and Raubitschek (2018), significant notions should be implemented. Through the rates of success measured success, the management knows when to change the business model. Changing business model assists in improving the operations of the company to promote profit increment. The four steps outlined above have made Netflix Company develop and increase its profit gain. Thus, they are appropriate in making the Netflix add value in service delivery.
Value Addition
Naturally, the initial stage used in deploying a service or a plication is building. According to Berman and Dalzell-Payne (2018, p.10), Netflix created nebula, which is a blinkered plugin set meant for grade building systems. It assists with heavy lifting all through the building applications. Gradle offers unrivaled support in support of testing, building alongside doing the packing for Java applications. This is covering major codes which are used by the customers when streaming various movies online. Therefore, by the use of Gradle, Netflix add value to the services it provides the consumers globally.
For several years, television has been taken to be a significant wave of broadcasting. It is a revolutionary technology which sending wireless signals over a more considerable distance to reach many people over the world. Since the services of video streaming of Netflix like VOD (video on demand) is delivered through the use of the internet, most of the viewers are capable of selecting what they need to watch and when to do such actions. Therefore, in situations where conventional channels are tasked with creating schedules for its service programs, Netflix Company has the task to program its library of movies to reach many people globally. Through this, the company adds value to the services provided to the consumers. The process has brought about various to be put into application by most the business when it comes to service management. According to Horst, Murschetz, Brennan, and Friedrichsen (2018, p.630), cable channels and broadcast networks often make money through selling to considerable audiences to advertisers globally. Netflix Company together with several portals including Sees and Amazon video are often subscribed to different modes of payment. Thus, it is imperative for the companies to look into various ways in which it cuts the costs of subscriptions for their consumers.
Conclusion
International service management is imperative for all firms operating globally. These firms should use appropriate business models to reach many clients as possible. The process of acquiring multiple customers can be enabled when companies use effective competition approaches to edge other firms providing similar services.
Part 2
Description of the organization
Netflix company is the global leader in the DVD rentals through emails. The company has approximately 1.2 million subscribers. The subscribers part with the monthly fees of $20 every month for the unlimited rentals. They are given about three discs at every point they make their subscriptions. Netflix provides approximately 16,000 titles alongside maintaining an inventory of nearly 6 million discs (Lasswell et al 2006). To hasten the process of delivery, the company has initiated about 21 regional centers for shipping its products in the entire United States. More often than not, customers receive DVDs in a day otherwise in two days immediately after placing their order for the product on the website. It promotes the operations of the company as it gets more customers all over the world due to the swift distribution of its products.
Netflix was started in the year 1997 in California, Scotts Valley by Marc Randolph and Reed Hastings. The two were both entrepreneurs’ veterans for the "new technology." The business was started to rent as well as sell DVDs through the internet. Previously, Randolph had assisted in establishing a company for computer mail order known as MicroWarehouse. Additionally, he had served as being vice-president standing in charge of Borland International marketing. On the other hand, Hastings who had been at one point a math tutor founded a Pure Software. Through this company, Hastings had currently sold about $700 million (Lasswell et al 2006). He had provided the start-cash for his firm with about $2.5 million cash. Hastings hit upon the notion of commencing rental-by-mail company at the point he was compelled to pay a fine of approximately $40 when he returned an overdue for the film videotape to Apollo 13 company.
The format of DVD, which could have been in a position of storing a higher quality copy for the whole film feature on a single five-inch disc, was introduced with the year. Less than a thousand titles became accessible within a shorter span.
The primary thing which was essential for the initial strategy of an organization indeed was the fact the available few video stocks had DVDs. Thus, it made the process of renting to such videos a miss-or hit concern. Netflix Company was similarly capable of taking advantage light weight and small sized discs. These could later be transferred to the users at a cheaper cost. The company experimented with approximately 210 mailing packages before getting one which could be shipped to the customers.
The firm opened several branches in the year 1998, recruiting 31 workers with 926 rent titles. These comprised of about the whole prints for the DVDs produced by Netflix. The company similarly provided “soft-core" titles for the playboy. However, it shied away from the producing hard-core pornographic films with the intention of avoiding prospective legal predicaments in particular countries. Netflix primarily provided a seven-day rental period of the DVD for only $4, on top of the $2 meant for shipping the product. With this cost moving down, the company was capable of producing extra discs to be rented by the consumers. The company could keep additional discs longer in support of the extra fees imposed. The new DVDs were similarly provided for sales at a discounted price which went up to 30 percent (Lasswell et al 2006). The customers were not in a position to buy the rented disc at once.
Since its inception, the company has had tremendous growth over the past periods. Netflix nearly reached one million subscribers by the year 2003. During this period, Netflix had opened five additional centers for shipping its product. The stock prices of the company were on a rebound. The share price hit about $22 with nearly 50 percent as compared to the IPO it was commanding initially at the time it started the share trade. Reaching June, last year, the company registered its first quarter of profit. Besides, it similarly became one the first Silicon Valley firms counting the options of stock as expenditures. The move a move came in the wake of public outcry concerning several accounting scandals which had been affecting the company. The company provided stock alternatives for all its salaried workers. This was anticipated to add $3 million for the fiscal year which ended in 2017. Again June 2017, the company was given U.S. patents in support of its software systems for tracking rentals of DVD as well as complying with the requests of customers. Also, by mid-summer, Netflix had acquired approximately 1.2 million subscribers together with the 15,0000 titles for the library (Ani, Günther, Wang and Bondarenko 2016)
After being in the business for nearly five years, the company was still in the mode of growth. Netflix only just turned to the profitability corner alongside fending off various challenges coming from multiple strong competitors in the market. The company has had a robust distribution system, customer fidelity together with the lately acquired patents in support of its software programs. Netflix is also commenced looking like one of the erratic e-commerce companies which would institute itself as a permanent component of the business globe.
Analysis of the Service Process (es) of Netflix Company
Netflix does not only have an intense reverence for support of its supply chain internationally but similarly to the global clients. The company often releases titles concurrently to its comprehensive product users, with incredibly few exemptions. These are some of the service processes which are entailed in Netflix company in managing most of its products:
Technology- Netflix company is committed towards its strategy of technology. However, this is yet not forthcoming. There are some of the existing tools which Netflix is using to achieve its technological needs. For instance, the company is using the content hub to serve as its digital assessment management tool. Besides, there is a terminology tool in support of handling significant phrases and names. However, the level of automation and technology often is not extending further (Ani, Günther, Wang and Bondarenko 2016). The company is typically aware of this problem. It is firmly committed to creating their endwise system for workflow management process. The management of Netflix prefers to develop this within in support of the similar motive that the company has been pushing towards bringing the functions of vendor management into the house. The process is meant to augment security and control levels it is having concerning various processes in the carried out in the company. The ultimate objective is to have the whole process of localization controlled through exceptions.
Vendor selection- A group of companies supporting localization is working with various partners such media engineers towards managing supply chain projects. Most of the project managers together with the Netflix team are working freely with the vendors for every project commenced by an organization. Theoretically, there are no significant commitments which have been made to vendors of any particular work level which make them continually use the services of Netflix. The first criterion of choosing buyers indeed is through establishing appropriate associations with the vendors using the company's products (Elgohary 2011).
Workflow management- Presently, the company lacks an advanced process for managing its workflow locally. However, the company uses excel spreadsheets which are often sent hither and thither to merchants through their separate emails. The management for past had discussed acquiring a tool for managing third-party projects. However, the appropriate decision was never reached for such acquisition. The plan appears to be delayed up to the point the developers would be finishing new systems which the company is presently working on when it comes it comes to managing its processes.
TMS implementation- The company is not having a central Translation Management System(TSM). However, vendors are merely utilizing tools, that is compatibility and a third party, as they are carrying out translations. The present process is that conversions are usually carried out in spreadsheets that are finally processed then translated by vendors who are assigned to perform such duties.
Machine Translation (MT)- Whereas the company is not having a universal policy when it comes to machine translation strategy, there are open ideas the MT used by the company to reach multiple clients globally. Netflix company is having an incredible progressive perspective concerning its technological needs, which incorporate machine translations (Schumaker and Lazarikos 2006). The vendors who are working for the Netflix are often encouraged to open MT to get more services offered.
Engagement with theory as a basis for the analysis
The compensation theory of Netflix has assisted the company. The principle held by Netflix is providing appropriate payments to the workers for effective service delivery. The management is honest when it comes to salaries alongside treating people like adults. For example, the company is not paying for performance bonuses due to the fact they are seen to be unnecessary when appropriate people have been employed to carry out the duties of an organization. The workers in Netflix company are wholly formed adults who are putting the needs of an organization first before any other thing. An annual bonus does not make them work harder, but they are used to their work. Additionally, the Netflix workers have a belief that market-based pay typically outlines workers who are working smart towards achieving the strategies of an organization.
Development of an overall analysis of the service strategy
Besides the availability of its services, content creation is an essential component of service strategy which should be put to use by the company. To succeed in the television marketplace. Netflix should have desirable contents which it can provide its customers. When there is sufficient content created, the company would be facing significant disadvantages in its operations. Provided that pay TV and broadcasting network firms have a permanent association with most of the content owners and producers, the field primarily offered such incumbent firms with a robust standing within their negotiations concerning deals for licensing. Therefore, it is appropriate for Netflix to develop a rapport with the content owners and creators to reach as many customers as possible all over the world (Paterek 2007, p.8).
Discussion of the appropriateness of the current strategy
Netflix is currently using data mining tools to reach hourly cost the customers are charged for every licensed content. The company is determining the content which viewers are supposed to pay for the compiled data. The data is employed in bringing predictability into the same content which is arranged on the foundation of exclusivity of the final pricing as well as the established timeframe of a contract (Hallinan and Striphas 2016, p.117). The strategy is appropriate as the company get to establish the number of users of its products.
References
Ani, F.G., Günther, D., Wang, B. and Bondarenko, I., 2016. A Strategic Analysis of Netflix Inc.
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of business re-invention. Strategy & Leadership, 46(1), pp.10-15.
Daidj, N. and Egert, C., 2018. Towards new coopetition-based business models? The case of Netflix on the French market. Journal of Research in Marketing and Entrepreneurship,6(5), p.34-89.
Dias, M. and Navarro, R., 2018. Is Netflix Dominating Brazil. International Journal of Business and Management Review, 6(1), pp.19-32.
Elgohary, W.R., 2011. Online technology and organization challenges: An examination of Netflix and customer satisfaction. Capella University.
Elkins, E., 2018. Powered by Netflix: speed test services and video-on-demand’s global development projects. Media, Culture & Society, p.0163443718754649.
Hallinan, B. and Striphas, T., 2016. Recommended for you: The Netflix Prize and the production of algorithmic culture. New Media & Society, 18(1), pp.117-137.
Helfat, C.E. and Raubitschek, R.S., 2018. Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems. Research Policy.
Horst, S.O., Murschetz, P.C., Brennan, D.N. and Friedrichsen, M., 2018. TV Film Financing in the Era of “Connected TV”: How Do “Legacy” Broadcasters Respond to Market Changes?. In Handbook of State Aid for Film (pp. 615-633). Springer, Cham.
Keko, E., Prevo, G.J. and Stremersch, S., 2018. 3. The what, who and how of innovation generation. Handbook of Research on New Product Development, p.37.
Lasswell, K., Schumaker, T. and Lazarikos, D., Lasswell Kevin W and Schumaker Troy T, 2006. Method to provide customized vulnerability information to a plurality of organizations. U.S. Patent Application 11/268,991.
Paterek, A., 2007. Improving regularized singular value decomposition for collaborative filtering. In Proceedings of KDD cup and workshop (Vol. 2007, pp. 5-8).
Sauer, R., 2018. Corporate Business Model Innovation: How Incumbent Firms Create the Next Iteration of Business Models(Doctoral dissertation, University of St. Gallen).
Schumaker, T. and Lazarikos, D., Schumaker Troy T, 2006. Method to generate a quantitative measurement of computer security vulnerabilities. U.S. Patent Application 11/268,983.
