Question 3

How will Netflix’s functional strategies have to support its competitive strategy? Explain.

If Netflix Inc. wants to remain competitive within the market and sustain its business, then it will have to complement the competitive strategy through its functional strategy. The current function strategy of company is making online content available on Netflix available to all the customer segments around the world. The overseas market segments are potential source of new revenue and these are still untapped by Netflix Inc.

Netflix will have to tap these markets and cash the revenues from this new revenue source to sustain its growth and remain competitive against all the competitors around the world. Secondly, Netflix Inc. will also have to emphasize more on providing faster streaming media services as compared to its competitors and differentiate itself. Along with speed, the variety and volume of the movies and making all new releases available online will have to be done to complement its competitive strategy.

 

 

 

 

Question 4

What do you think Netflix is going to have to do to maintain its competitive position, especially as its industry changes?

The competition dynamics of the industry are changing and there are changes within the industry itself, therefore, Netflix will have to maintain its competitive position and sustain the growth in the market by providing valuable and faster streaming services to its customer base. The quality of the streaming content that is provided will also have to be expanded and improved and it should support all the new technologies that would be developed in the future years.

For instance, different high definition technologies have already been introduced in the market such as the 3K technology in smart TVs. Netflix needs to expand the volume and quality of its TV shows and movies for the customers and these should be updated on a regular basis to meet the competing demands of the customers that are not fulfilled through Amazon Prime and Hulu. This would divert the attention of its customers towards customers and yield unlimited profits over the customer lifetime.

 

 

 

 

Conclusion

The analysis of this case and the issues raised within this case have highlighted the fact that if Netflix Inc. wants to sustain its business model, increase its revenues and remain competitive in the market then it will have to improve its functional strategy to complement its competitive strategy in the market. The quality of the online streaming media, convenience, support for new technology, speed and volume of the movies and TV shows will have to be improved and expanded to fight against other major competitors in the market such as Amazon Prime and Hulu.

Finally, Netflix Inc. has not yet fully tapped the international and overseas market and this represents a potential source of revenue for the company. Therefore, Hastings need to devise an international strategy and expand its business overseas and in international markets to tap extra revenue and padded income from the most lucrative markets of the world that have a high demand for online streaming media. In this way, Netflix could remain competitive in the market and sustain its growth over the future years…………………

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