Netflix Goes to Bollywood Case Solution
Question: 3
Yes, Netflix has a completion advantage in the streaming. The launch of its streaming service was a major turning point for Netflix. In the media and entertainment sectors; it has created a sensation. Netflix grew enormously with its streaming business after thriving with its mail system.It was the first mover in the streaming services, which enabled it to attract a large customer base. The advantage was the willingness to pay, so Netflix’ corporate or business strategy is differentiation.
As Netflix’s strategy is to become global internet entertainment service provider; its strategic moves in streaming through 2019, are as follows:
- Introducing mobile-only subscription at low price.
- Focusing on expansion strategy.
- Investment decision: investing to produce original scripted content.
- Focusing on core business instead of diversification.
Netflix’s experience in industry, good investment decision, advance technology, and resources and capabilities are critical to its strategy.
Question: 4
Disney +
The Disney+’s entry in the SVOD industry poses an extreme threat to Netflix, because on the very first day;Diney+ captured 10 million subscribers.It formed after the merger of two to three large companies. The fan base of Disney is stronger as compared to Netflix, and there are higher chances for Netflix to lose its huge market share to Disney +. The fan base of Disney ranges from children to adults, and also to whole families, because it provides content and bundle packages for an entire family. Disney plus offers exclusive Disney content with subscription only.
Netflix’s Reaction
Netflix continued its global expansion even after losing customer its domestic market to Disney +. Netflix increased its investment at a faster rate in India, to get 100 million subscribers from India.It provided low priced mobile only subscription plans to the users at the monthly charges of $ 2.85.
Recommendation
As Disney + is getting success in the U.S market; there is a huge threat for Netflix to lose its subscribers to Disney. So, to achieve success in the U.S market; Netflix should either consider the acquisition and merger strategy,just like Disney or it should exit the U.S market. But, Netflix can get its customers back by providing quality content at lower cost.
Question: 5
Recommendation (Netflix’s growth in the Indian market)
The Netflix must grow in the Indian market,to get 100 million subscribers.As there is a huge competition from a number of competitors;the competition is increasing day by day the biggest threat for Netflix.We recommended Netflix to stick to all of its strategy's elements, such as: premium price, no add streaming services and focusing only on streaming services.
To increase the profitability and to achieve the target of 100 million subscriber from India; Netflix needs to add advertisements in its streaming service. By doing so, the company will be able to provide streaming services at lower price to the price sensitive customers in India, because Indian population is highly price sensitive.
Following are the key obstacles which Netflix can face while including ad in its services:
- Can decrease the quality of content and create disturbance for the viewers.
- Including ads, creates astrategic change in the firm, so it will be difficult to communicate it to the human resources, clients and content producers at Netflix.
- It can slowdown the speed of services.
- It is difficult to convince customers for such change in the streaming services.........................
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