Introduction of Netflix

Resources and management have a crucial role in the success of a business. In media, industry changes are rapidly changing the overall market for companies working in the entertainment industry because of which profitability is getting influence. Present work is related to the case study presented on media industry covering several famous companies such as Netflix and Disney.  

Strategy of Netflix

The strategy represents the action plan of a company regarding the execution of organizational operations. Netflix strategy is to mainly pay attention to the scripted series and scripted movies. Netflix earns profit from ads and subscriber fees. The diamond strategy of Netflix is consist of 5 elements of consideration 1) vehicles, 2) economic logic, 3) staging and pacing, 4) differentiator, 5) arenas. Netflix arena represents the market segment, geographic area, and product category. Netflix offer products in all over the market without demographic segmentation of targeting the young generation as offered products relate to the young generation and adults. The economic logic of Netflix is to offer services at low prices and premium services at high prices. While other competitor companies such as cable service providers are offering their services at high prices than Netflix because of which customers are switching to Netflix (Sherman).

Netflix is focused on internal development while its competitors like Disney focuses on franchising and acquisition. Differentiation support a company in getting success in the market. Netflix is creating differentiation through content wars. Netflix spent on each show based on a possible return. Staging and pacing strategy of Netflix is to expand business operations at high speed. Netflix speeds in the new era without net neutrality safeguards.            

Market Structure of Netflix

The media industry is a highly attractive market because of continuous growth. It is commonly assumed that the media industry is in a frenzy. Media companies are rapidly jumping on the opportunities to expand their operations through acquisition. Somehow, technological changes and changes in other requirements are also causing changes in the market structure and media industry. According to the BTIG media analyst, the rearranging of this industry is chessboard in history. Changes in the media and entertainment industry are allowing more appealing high quality content. In streaming content payment Netflix has an obligation of $17.9 billion. The streaming model has also affected industries. Some media industries are earning a high profit because of the advanced streaming model.          

Resources/Capabilities of Netflix    

Resources and capabilities are highly important to manage for the companies to gain long term success in the market. The insufficient resource can influence business operations negatively. Netflix has excessive financial resources because of which they are spending high on business operations with relatively low return. Managerial capability to utilize resources effectively is also an important concern. Poor management of resources results in the decrease of efficiency and causes to increase the cost of operations. Netflix is gaining funds from investors as financial resources for the execution of operations. Organizations are required to pay focus on resources and capabilities as a lack of these resources and capabilities can result in the increase of competitive power for competitor companies.            

Conclusion on Netflix

The whole discussion concludes that the media industry has a high potential for the entertainment industries. Analysis of case study conclude that Netflix is creating differentiation in the market by providing services and products at relatively lower rates in the market. Netflix is rapidly growing in the market because of its focus on geographical and operational growth. Resources and capabilities management are causing to support Netflix and Disney is expanding their business operations in the most profitable way.       

References of Netflix

Sherman, Alex. How Netflix sent the biggest media companies into a frenzy, and why Netflix thinks some. 2018.