A week after I landed in Australia , I was having a chat with my 6-year-old nephew about movies and T.V shows. I was shocked by the way he was up to date about every tits and bits of it. He updated me about this online streaming service. The fact that it was inexpensive and  I could watch the initial month unlimited for FREE made me feel like in seventh heaven, who wouldn’t want a theater at home.


May it be movies or T. V shows, the most reliable catch for everyone – NETFLIX. Two lads wanted to start-up a company and wondered what they would start off with. Fortunately for their good luck Hastings had to pay overdue fines of $40 after returning Apollo 13 and this was the turnaround in the life of Hastings and Mark Rudolph. Netflix boomed up in 2007 and since last few years, there is a massive decline in TV subscribers. The main group who cut their cable cords and dependent on Netflix are the youngsters as it is much more affordable.Some interesting facts of Netflix:

Since 2015, its main goal is to expand their streaming service worldwide using a diversity of languages.

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As Netflix is now becoming Global, there is a recent marketing issue if Netflix is trying to use China as a tool for its booming success. It is said that Netflix will have to negotiate with a local player to hit the Chinese streaming market which I think is a fantastic idea(Opportunity). But will it fail or succeed? only time will tell.

Being an online rental house globally, Netflix can face issues which are quite assumable in course of their growth. As we all know that every coin has two sides, so they are just experiencing that phase of life where they have to put up with administrative costs to meet the regulatory and censorship requirements. In addition to that the content cost might also increase as China acquires region-specific content(Weakness). But we all know that there is always a brighter side up the hill. The quality of the video content, original content, high value licensed content, Branding Accessibility and customer loyalty(Strengths) favors them to boom up to over 200 countries in 2017(Opportunity).


When you tie your lace and get on the ground you very well know that you are up for a competition and that your opponents are also there on the field to score a goal. It’s all about how you tackle the players and pass the ball to SCORE. Out here the major opponent is China’s ultimate online streaming provider iQIYI which had doubled to 10 million subscribers between June and December 2015.Another threat which Netflix could face is the Chinese e-commerce giant Alibaba along with several other local players. Adding to all that would be amazon which provides service to customers with free shipping and HBO which released HBOGO which is an online streaming service which could be pretty rough for Netflix to become the competitive leader. Furthermore, there are few others who neglects the offside traps and come forward to score, Youngsters download contents for free without the need of subscription service(Threats). But always know that these SPARTANS aren’t scared of anything!!!1459147814_sparta


According to Treacy and Wiersema Strategy, Netflix has managed to position their brand in terms of Operational excellence, Product leadership and Customer intimacy.

1)Operational Excellence:Netflix has divided the company into two operational service.

-streaming side to access and deliver to subscribers

– DVD-by mail operation and Rental return machine called as the “Amazing Arm” of Netflix.

2)Product Leadership: Even though Netflix has been put to test due to the hike in price which could impact the subscriber growth, I feel customers would still be satisfied because they excel in serving high quality and original content, hence will stay ahead in the competition game.

3)Customer Intimacy:To add all that up, Netflix is also referred to as a customer centric company as they listen to all the feedback from customers which could aid them to improve on their brand and also gives the customers  to access  their favorite shows or movies whenever, wherever and in whatever device they want.Netflix has also teamed up with IT and other professionals to achieve customer success.  

In my Opinion,with these strategies,Netflix will not only be able to conquer china but the entire globe and can attain the competitive edge.Netflix will not only be a choice, but the ultimate choice for everyone.


Trefis team: Contributor (2016) Netflix is now Global: But Is China’s Market Key for Its International Success? http://www.forbes.com/sites/greatspeculations/2016/01/13/netflix-is-now-global-but-is-chinas-market-key-for-its-international-success/#62c8ee527a81

Emily Steel(2015) Netflix Refines Its DVD Business, Even as Streaming Unit Booms http://www.nytimes.com/2015/07/27/business/while-its-streaming-service-booms-netflix-streamlines-old-business.html?_r=0

Daniel Archer(2015) How Netflix rose from the ashes by becoming http://www.myfeelback.com/en/blog/how-netflix-rose-from-the-ashes-by-becoming-customer-centric

Patrick Seitz(2016) Netflix Rate Hike To Be Key Test Of Its Pricing http://eds.b.ebscohost.com.ezproxy-f.deakin.edu.au/eds/detail/detail?sid=060f5478-9b0e-4855-9817-23dfe73bad0b%40sessionmgr101&vid=0&hid=111&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#AN=114314707&db=bth


STUDENT ID: 216039827


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