Netflix Srategy Term Paper Harvard Case Study Analysis

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Netflix Srategy Term Paper Case Study Solution & Analysis


Netflix Srategy Term Paper Case Study Help is a well-known international brand name in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. Netflix Srategy Term Paper handle large number of product categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core customers include the Original Equipment Manufacturers (OEMs), which utilized to sell Enterprise products withtheir own brand name. Till early 1990s, the core competency of Org depend on its low price offerings than its rivals by making existing products at economies of scale. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to offer Netflix Srategy Term Paper Case Study Solution items with their own brand. Organization was not simply known outside Korea. There were also no or little interest in constructing the brand name globally. Marketing budget was managed by production department with a focal point on providing inexpensive products.During the 1997 Asian Financial Crisis the business practically got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the top 25 most valuable business worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Corporation as a worldwide brand and educated his divisional managers to understand marketing and its value. Now their objective is to arrive 10 by 2005.

Problem Statement

Enterprise's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to include marketing successfully is still a major challenge. Creating a constant brand identity across the entire world and using marketing techniques that finest fits the regional culture is no easy task.
Executive Summary
Situational Analysis

Yun had a rather clear photo in his mind about how Netflix Srategy Term Paper Case Study Analysis can change from a low end to a high end item company. He knew that change can only be done through placing Corporation as a business offering high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to build Enterprise brand name, with a possible support of its executives, Yun dealt with several marketing difficulties in early years of its efforts.

Among the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the current marketing requirement was too much high, the gap was too wider and to fill this space with wrong understandings about marketing was quite challenging for Yun.

As stated above, marketing focus was very low in previous practices, therefore there were no correct marketing budgets for each of the item on the portfolio. There was no marketing preparation done for the existing products. In addition to it the item variety of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Corp. Yun had a difficulty to carry out marketing planning and to create marketing spending plans for existing in addition to for new items from the very beginning, and this would take a big time.

A substantial shift would be needed in current marketing expenses to construct the Org brand. This would result in increased marketing expenditures for Business and might disturb the administration regarding increased costs, as they were hesitant to marketing expenses formerly and an abrupt big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Netflix Srategy Term Paper Case Study Help strengths lie in its big item portfolio. Corporation has largest number of patents in the market with overall number of 15499 patents granted in United States( USP).

Another strength of Netflix Srategy Term Paper Case Study Solution is its capability to develop ingenious items at a constant rate. It major proves for the development and product designing of Venture is that the company has gotten many awards for its innovation and product design.

Unlike Apple and other competitors, Company is concentrated on producing gadgets which can be easily integrated with any type of open source Os (OS) and software. This provides Org an edge over Apple devices.
Porter's 5 Forces Analysis
Company's ability to produce luxury products at low cost of production is likewise among the major strength of Enterprise as it allows the company to record more market by offering quality items with expense control.


Organization's weaknesses are concealed in the business's dependence on outsourcing software for its devices due to business's failure in developing software, unlike Sony. Netflix Srategy Term Paper Case Study Solution likewise has low revenue margins as compare to Apple due to substantial difference in the prices of Apple and Enterprise with a much lesser difference in quality.


Opportunities for Netflix Srategy Term Paper Case Study Analysis lie in the growing Mobile phone market and the business's efficiency in the market. Org presently runs in about 80 countries and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology industry posture an extreme threat on Business's survival and force the business to invest much of its earnings share on R&D in order to make it through in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a huge danger for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Netflix Srategy Term Paper Case Study Help provides quality products and has a quite abundant portfolio which accommodates different sections. Most of the items are in the top 3 of their respective industries. LCD and smart phones are the greatest items of Business, whereas DRAM is also not far behind in comparison of them. Following is the product line of Org:

• Laptops.
• Cellphone.
• A/c.
• Computer.
• Hard drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Netflix Srategy Term Paper Case Study Help utilizes both market competitive and market skimming rates techniques for its wide range of products. In competitive pricing it adjusts the rate according to the competition in order to gain advantage, whereas, it utilizes market skimming technique where the item has an included value and by selling a few items it can reach break-even.


It has one of the very best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon and so on. All its items are timely provided to the selling location/ delivered to the clients straight in case of online order.

Vrio Analysis
It wasn't a well-known business outside of Korea up until 1993. But the management initiative taken by their CEO has pressed them to market more effectively outside the borders and now it has actually gotten in the league of leading 25 business worldwide in simply 9 years. This is an exceptional accomplishment despite the ongoing arguments amongst the managers about embracing marketing practices. It utilizes both offline & online channels of promotion to market their items. Paid product ads, social promotion and digital ads are uses to produce awareness about Venture products.

Value Chain Analysis.

It's an analytical structure for determining service activities that include value or competitive benefit for the business.

Incoming Logistics.

It has among the most effective and effective supply chain network and has over 2700 providers throughout numerous markets around the world. Almost 80% of which is based in Asia and the staying all over the world. For its inbound logistics it owns various logistics firms as it subsidiaries. It cares for its providers and creates an unified relationship with them and even reduced their payment cycles to increase this relationship further which includes worth to their chain network.


Venture's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 various divisions its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is preserving operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the primary reasons Netflix Srategy Term Paper Case Study Help is able to take on Apple. Venture's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Corp.

Marketing and Sales.

Drawing in target client attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the item uses. Netflix Srategy Term Paper Case Study Analysis advertising budget is constantly increasing considering that they started their rearranging internationally and will continue to do so as they are constantly wanting to invest and broaden in high prospective growth markets. The spending plan is spent on occasions, print and media advertisements, public relations and so on.

Corporation Service. Venture put their clients on top and constantly make every effort to provide unmatchable customer service standards. As after sales service is ending up being exceptionally important to keep consumers pleased and engaged, they even perform surveys through third parties to learn their client's feedback and execute it in the positive method to minimize or if possible totally remove their consumer problems. By including a direct support line to call them 24 hr they have further increased the included worth of Netflix Srategy Term Paper Case Study Solution service.


Netflix Srategy Term Paper Case Study Analysis has diversified market segmentation, based upon its arrangement of wide variety of items to a great deal of consumers. Corp target customer sections can be divided into 3 classifications i.e. Netflix Srategy Term Paper Case Study Help IT and Mobile Communications, Company Customer Electronic Devices and Company Gadget solutions.


Netflix Srategy Term Paper Case Study Solution geographic segmentation is based upon two criteria i.e. area and density. Business serves about 80 countries worldwide with its items offered to Urban in addition to Rural areas of the nation. The Organization is likewise growing its international presence and the company's versatility in locating its plants encourages worldwide expansion of Enterprise.


Business produces items that can be utilized by both females and males. The target clients for Organization IT and mobile communication products have an age range of 18-65 with bulk at a young or freshly married life cycle phase. Apart from it, Company Consumer Electronics are targeted to a client sector with an age variety of 25-65.


The psychographic segmentation of Netflix Srategy Term Paper Case Study Solution s based upon the social class and the life style of the consumer. Corporation target clients on the basis of social class are primarily upper middle, middle and working class customers, as Organization offer items like cellular phone very little less expensive i.e. Motorola as well as not much costly i.e. Apple. It supplies quality items to middle level consumers at a slightly high price than others targeting the same section.


Netflix Srategy Term Paper Case Study Help bulk target clients have unique behavioural characteristics. It has clients with an ambitious, trendy and identified character with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other renowned brand names i.e. Apple. Most of Venture clients want quality along with cost control. They are brought in towards Corporation because of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Enterprise has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has likewise reduced its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Org with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Due to the fact that of the high overhead expense, revenues/ sales are increasing however net profit is not increasing accordingly. New expansions and working with's were the primary factor of the boost in the overhead costs, with china currently not providing any earnings to Venture, but there is so much potential in the current market with 75 % yet to be checked out.

Qualitative analysis.

Whereas, the core strength of the company is presently making however long gone are those days when excellent items were offering themselves. Kim has already begun to enhance the marketing activities of Enterprise and really soon it will become one of its core strength like manufacturing if not much better.



Enterprise runs designs, manufactures and offer a huge portfolio of customer electronics. It operates in a very competitive environment and has effectively placed itself as the maker of quality items. So, the response is yes.


As, stated earlier that Netflix Srategy Term Paper Case Study Help operates in an extremely competitive environment, which means all the business have comparable items. So, the answer for rarity is no.


Due to the nature of the industry, it is very easy for rivals to comprehend the performance of the products and easily make their own designs. Yes, Org is just behind IBM in signing up new patents every year, but the advantage is really short-term in this market.


Chairman Lee has totally turnaround Corp, from going practically insolvent during the Asian monetary crisis of 1997 to the top 25 company worldwide. Definitely yes there appertains company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every country worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. It faces some political pressures in less industrialized nations where law and order scenario is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Netflix Srategy Term Paper Case Study Analysis operations.


Purchasing power of customers is essential for business like Organization to succeed and grow. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to economic crisis even the consumers of developed countries suffer terribly. Hence it is very essential for the business to watch on the continuous financial circumstance of the country prior to entering the market.


Multinational companies need to face numerous social and cultural concerns during its operations in a foreign country. Enterprise has likewise faced many issues however have actually embraced to the local environments of most of the nations exceptionally well. It has tailored its items, practices, policies and so on appropriately in order to be successful.


With an annual expense of 2.4 billion dollars in Research & Development, and with constant ingenious product launches, Netflix Srategy Term Paper Case Study Analysis is one of the leading innovative business of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Corp has actually risen to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational company Company have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. So, it has to study or work with a local law professional prior to beginning its operations in a particular country.


With the rising awareness among consumers about the ethical & ecological offenses of business, Corporation has to guarantee that it follows all the security guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some countries the consequences can be extremely serious. On the other hand it needs to do some Corporate Social Responsibility practices to show the residents that it appreciates their environment and individuals.

Porter's Five Forces

Danger of Substitution

Danger of substitution for Org's each item category is rather considerable. Aspects for high threat of alternative for Netflix Srategy Term Paper Case Study Analysis Smartphone include the presence of high number of suppliers and Market saturation in industrialized nations, which make the expense of switching for customers practically zero. Along with it, Corp printing services items are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Business and its close rivals is intense. The significant factor behind this is the technique of market saturation in different number of item categories, requiring Company to present more innovative functions in existing products and new innovative products to preserve its development. The major competitors for Netflix Srategy Term Paper Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

( Corp Sustainability Report, 2016) Supplier's bargaining power for Company is low as Venture runs economies of scale and its orders are of possible size and worth. Due to incapability of Netflix Srategy Term Paper Case Study Analysis to construct its own software application, it has to outsource its software advancement to Google, which becomes a prospective provider of software for Company, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Haggling power of purchasers for different number of product classifications of Organization is extreme. One of the aspect resulting in the intense bargaining power is the schedule of large number of rivals in practically each item category i.e. rivals of Org Smart device, with an extremely little distinction. The high schedule of providers of Mobile phones with minimum differentiation, make the changing cost for buyers practically absolutely no, hence increasing the bargaining power of purchasers. Market saturation in the majority of the product classifications also make the bargaining power of buyers more extreme in for Netflix Srategy Term Paper Case Study Analysis. In spite of igh bargaining power Org is quite capable of offering its products at a higher rate than much of its rivals, due to high end quality item and a fair brand name image.

Threat of New Entrants:

Threat of new entrants for Business is rather low. Among the major aspect for low threat of new entrants is the high competition in the market. The requirement of huge amount of capital to go into in the market is likewise among the potential barrier to entry. Along with it, requirement of substantial know-how and research study and advancement expenditures for survival in the market likewise make brand-new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in technology market. High bargaining power of providers force the players in the market to charge as low costs as possible and this can only be achieved by production efficiency. New firms, in bulk cases, do not have the production effectiveness, hence increasing the dangers for entrance in the innovation market.

Competitive Analysis

Organization's high item diversification provides it distinction from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single product classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Netflix Srategy Term Paper Case Study Solution had a huge R&D costs on all of its item classifications which allow the company to make possible earnings from sales of almost all of its items.

The business ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to global market share, amongst 8 various item categories. Corp was the global leader in making DRAM, SRAM and NAND flash chips. Company profits from chips was less than Intel however its earnings from chips was growing faster than Intel and has actually grown close to the income levels of Intel, as given in the case Exhibition 2.

Together with the chips Org mobile market was also growing at a high rate than its rivals i.e. Motorola and Nokia. Enterprise's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales growth. The major reson behind Business's high growth despite of greater prices than Nokia and Motorola was the company's high-end quality cellular phone.

Venture was also reaping the benefits from increasing market share of high-end LCDs as given up case Exhibit 3. The major factor, making the business allow to avail the chance is its mass production at low cost. Sony was the greatest rival for Netflix Srategy Term Paper Case Study Help in LCD market, nevertheless, it had likewise begun joint venture with Enterprise in 2003 for LCD making, lessening the competitors for Organization.

Porter's Competitive Technique

Low Cost Management technique of porter is fully implemented by Venture the method they attain economies of scale by enhancing their core competencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to produce for them, due to the fact that they were unable to take on them on low expense. Differentiation is another strategy well carried out by Corporation by constant financial investment in the R&D and staying ahead of the competition. They constantly bring something innovative and new whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Netflix Srategy Term Paper Case Study Solution would develop a new brand image by targeting the younger generation of the particular nation. As, specifically mobile phones of Business are popular amongst the more youthful group.


1. It is the best strategy to construct Client Life time Value (CLV) by creating a long-term relationship with customers. Build loyalty through delivering worth and profit for long-lasting, as research has actually showed it is much cheaper to retain existing customers than to bring in new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst younger individuals and which in turn will generate new clients for my products.


1. Old consumers who were associated with Organization before may not like this new image the business is attempting to depict.
2 It will sustain more expenditures to rearrange some products and it might not even bring success as the trends alter extremely rapidly among the more youthful demographic.

Alternative option 2.

Organization has actually made producing its core competency for the a lot of part of their organisation and due to which its managers are not afraid to fully get out of their convenience zone. It would be done by arranging training workshops during which value of marketing will be taught and numbers will be given. Failure to get the passing scores will get benched. Marketing environment need to be produced internally first as genuine marketing begins inside the corporation.


1. Its pro will be that all the marketing method advocates will come out and also the opposite ones.


2. Its con can produce an extremely unhealthy environment in the workplace, as individuals typically withstand modification due to the fact that they fear it.

Recognize the best alternative

Option is the finest as it clearly has more pros since once a Consumer Lifetime Value is built the company will benefit from it till that client is alive and has acquiring power. Plus, our target customers are the more youthful generation which are bound to live longer than the present old age people. Company's main objective is to develop loyalty among its clients and make them repurchase it from them and even buy their various items.

Implementation Plan

• Targeting younger generation through social marketing, developing a link with them like Pepsi make with music. And set the expectations reasonable and attainable.
• A team consisting of best marketing and sales professionals should be put together, and both views ought to be taken into consideration prior to securing the resources needed to carry out the strategy.
• Thorough interaction of the plan need to be done as it is really crucial for everybody to be on the same page to make it work.
• Jobs and timelines must be construct and communicated accordingly to each individual responsible.
• The manager should utilize a control panel which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to keep track of and keep a constant look at the private and overall performance.
• Everybody must want to adjust midway because any brand-new trend or policy might come in due to which all the things currently prepared need to be adjusted. It's much better to have contingency plans already prepared.
• At the end of the campaign the supervisor need to interact the outcomes and if successful need to celebrate with the team.

Budget plan

The M-net program revealed compelling analysis about the high and low growth prospective locations and how much advertising budget plan should be designated accordingly. This modification the spending plan allotment of different countries and lots of supervisors were unhappy and argued however the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia development prospective warranted a 35% allowance while they were receiving 45%. Whereas, China and Europe ought to be getting 42% however were instead given 31%. It actually helped to fairly disperse the resources and catch more clients by spending more on advertisements on the high growth capacity areas of the world.

Netflix Srategy Term Paper Case Study Solution is a leading 25 business on the planet now and plans to get ahead of Sony who sits presently at no. 20. Its continuous financial investment in R&D and innovative practices have moved them to brand-new heights however for them its' only the start and they want to be amongst the leading 3 brand names in the world. They totally turn-around from practically going bankrupt during the Asian Financial Crisis to a world prominent brand, understood for quality and innovation. Their worth chain and their core proficiency their manufacturing capability, along-with global brand image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts must be directed towards more youthful demographic amidst the internal arguments about marketing and ought to produce Customer Lifetime Value as it will not only give them benefits now but will continue to gain it till the client lifetime. As the expense of retaining the consumer is more affordable than drawing in a new one.