Netflix

Netflix

Question #1

Netflix utilizes a subscription-based business strategy. With the rapid technological advancements and innovation, the company has expanded its operations into many countries across the world. The organization ensures that consumers have access to a wide range of movies and TV shows. Customers can access these services from their mobile phones, tablets, laptops, and smart TVs.

Netflix faces various challenges. The company faces stiff competition from rivals such as Hulu, Amazon, and HBO (Rothaermel & Guenther, 2017). Thus, the organization must develop strategic initiatives to maintain competitiveness in the market. Subsequently, Netflix relies on internet service providers to provide high-bandwidth content to customers. When internet service providers fail to offer high-speed connections, Netflix loses customers.

Question #2

Netflix disrupted the United States home entertainment industry by promoting brand awareness and reputation. When the company developed its website in 1998, it engaged technology writers to publish articles about its products and services (Rothaermel & Guenther, 2017). The organization also provides affordable pricing to consumers. The affordable prices attract potential customers who want original content. Besides, Netflix’s business has changed over time. The company leverages new technologies to ensure better customer service and experience. The firm continues to develop innovative products that meet consumers’ needs and expectations.

Question #3

Diversification would enable Netflix to increase the demand for its services in America. The company should consider providing internet services to its customers to ensure they have high-speed connections. The organization should also develop strategic partnerships with TV shows and movie producers. When the firm provides customers with original content, they become satisfied and remain loyal. Therefore, Netflix should continue leveraging on technology and brand reputation to maintain a competitive advantage in the entertainment industry.

Reference

Rothaermel, F., & Guenther, A. (2017). Netflix, Inc.