Netflix Srategy Term Paper Harvard Case Study Solution

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Netflix Srategy Term Paper Case Study Solution & Analysis


Netflix Srategy Term Paper Case Study Solution is a popular international brand in technology market, founded in 1938 by Lee Byung Chul, in South Korea. Netflix Srategy Term Paper deals in a great deal of item categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the business's core consumers consist of the Original Equipment Manufacturers (OEMs), which used to offer Organization products withtheir own brand. Till early 1990s, the core competency of Organization lie in its low price offerings than its competitors by making existing items at economies of scale. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Netflix Srategy Term Paper Case Study Analysis products with their own trademark name. Organization was not simply known outside Korea. There were likewise no or little interest in developing the brand name globally. Marketing budget plan was managed by production department with a focal point on offering inexpensive products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the leading 25 most important company on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Business as a worldwide brand name and educated his divisional supervisors to understand marketing and its value. Now their objective is to reach the top 10 by 2005.

Issue Declaration

Business's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing efficiently is still a significant difficulty. Developing a constant brand identity throughout the entire world and using marketing techniques that best fits the regional culture is no simple job.
Executive Summary
Situational Analysis

Netflix Srategy Term Paper Case Study Solution efforts for building its brand across the world was started after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to transform Company from an inexpensive OEM to a high value-added product service provider. To make the vision of Venture a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Organization can change from a low end to a high end product provider. He knew that change can just be done through positioning Org as a business offering high-end products and this could just be done through high level of marketing.

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

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as very same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the present marketing requirement was excessive high, the gap was too broader and to fill this space with wrong understandings about marketing was quite difficult for Yun.

As mentioned above, marketing focus was extremely low in previous practices, therefore there were no proper marketing budgets for each of the product on the portfolio. There was no marketing planning done for the existing products. In addition to it the item variety of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Org. Yun had an obstacle to carry out marketing planning and to create marketing spending plans for existing as well as for new products from the very start, and this would take a big time.

A big shift would be needed in existing marketing expenses to construct the Netflix Srategy Term Paper Case Study Solution brand name. This would lead to increased marketing expenditures for Enterprise and might interrupt the administration relating to increased expenditures, as they hesitated to marketing expenditures formerly and an abrupt big shiftwould make them disrupt. This might lead to declining executive assistance for worldwide marketing. In this circumstance, Yun faces a difficulty for justifying increased marketing expenses by showing the long term worth of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Netflix Srategy Term Paper Case Study Analysis strengths lie in its big item portfolio. Business has biggest number of patents in the industry with total number of 15499 patents given in United States( USP).

Another strength of Netflix Srategy Term Paper Case Study Solution is its ability to develop ingenious products at a continuous rate. It significant shows for the development and product creating of Organization is that the business has actually received so many awards for its development and item style.

Unlike Apple and other competitors, Organization is concentrated on producing gadgets which can be easily integrated with any kind of open source Os (OS) and software. This supplies Company an edge over Apple devices.
Porter's 5 Forces Analysis
Corporation's capability to produce high-end items at low expense of production is likewise one of the significant strength of Corporation as it allows the business to record more market by offering quality items with expense control.


Business's weaknesses are concealed in the business's dependence on outsourcing software for its devices due to company's inability in establishing software application, unlike Sony. Netflix Srategy Term Paper Case Study Analysis likewise has low revenue margins as compare to Apple due to substantial distinction in the prices of Apple and Organization with a much lesser distinction in quality.


Opportunities for Organization lie in the growing Smart device market and the company's performance in the market. It can increase its market share and earnings from cell phone as the business is quite efficient in mobile phone market. Organization presently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Company can move towards acquisitions to get patents. It would enable the company to increase its item portfolio with an increase in its wealth.


The vibrant industry environment of innovation industry present a severe risk on Company's survival and force the business to invest much of its incomes share on R&D in order to endure in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is likewise a huge risk for the company's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Corporation uses quality products and has a rather abundant portfolio which caters to different segments. LCD and mobile phones are the greatest items of Enterprise, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Smart phone.
• Air conditioner.
• Computer.
• Hard disks.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


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


It has one of the best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon etc. All its products are timely provided to the selling place/ delivered to the customers straight in case of online order.

Vrio Analysis
It wasn't a well-known company beyond Korea till 1993. However the management initiative taken by their CEO has actually pressed them to market more effectively outside the borders and now it has gotten in the league of top 25 companies worldwide in just 9 years. This is an exceptional accomplishment despite the continuous arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promo to market their items. Paid item ads, social promotion and digital ads are uses to create awareness about Business items.

Worth Chain Analysis.

It's an analytical structure for identifying company activities that include worth or competitive benefit for the business.

Incoming Logistics.

For its inbound logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and produces an unified relationship with them and even lowered their payment cycles to enhance this relationship further which includes worth to their chain network.


Corporation's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into 3 different divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is preserving operation centers worldwide to even more include value to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary reasons Netflix Srategy Term Paper Case Study Help is able to compete with Apple. Corporation's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Organization.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the item offers. Netflix Srategy Term Paper Case Study Analysis marketing budget plan is continuously rising since they began their rearranging globally and will continue to do so as they are continuously wanting to invest and broaden in high potential development markets. The spending plan is invested in occasions, print and media advertisements, public relations and so on.

Business Service. Venture put their customers at the top and continually strive to deliver unmatchable customer care requirements. As after sales service is becoming incredibly important to keep clients pleased and engaged, they even conduct surveys through third parties to discover their consumer's feedback and execute it in the positive method to reduce or if possible totally eliminate their client issues. By adding a direct assistance line to call them 24 hr they have actually even more increased the included worth of Netflix Srategy Term Paper Case Study Help service.


Netflix Srategy Term Paper Case Study Analysis has actually diversified market segmentation, based upon its provision of wide variety of products to a great deal of customers. Org target consumer sectors can be divided into 3 classifications i.e. Netflix Srategy Term Paper Case Study Analysis IT and Mobile Communications, Company Consumer Electronic Devices and Company Device services.


Netflix Srategy Term Paper Case Study Analysis geographical division is based upon two requirements i.e. region and density. Business serves about 80 countries worldwide with its products provided to Urban as well as Backwoods of the country. The Company is likewise growing its international presence and the company's flexibility in finding its plants encourages worldwide growth of Venture.


The demographic division of Netflix Srategy Term Paper Case Study Analysis is based upon gender, age, life-cycle stage and profession. Enterprise produces products that can be used by both women and males. The target consumers for Enterprise IT and mobile interaction products have an age range of 18-65 with bulk at a young or recently married life cycle stage. They are mostly trainees, specialists and employees. Apart from it, Venture Customer Electronic devices are targeted to a customer sector with an age series of 25-65. They are mainly specialists and staff members. Nevertheless Netflix Srategy Term Paper Case Study Analysis Gadget Solutions are targeted at students, workers and specialists with an age variety of 25-65.


The psychographic segmentation of Netflix Srategy Term Paper Case Study Help s based upon the social class and the lifestyle of the customer. Corporation target consumers on the basis of social class are generally upper middle, middle and working class customers, as Org offer products like cellular phone very little more affordable i.e. Motorola along with not much expensive i.e. Apple. It supplies quality items to middle level consumers at a slightly high cost than others targeting the same segment.


Netflix Srategy Term Paper Case Study Help majority target clients have distinct behavioural qualities. It has clients with an enthusiastic, trendy and identified personality with moderate level of loyalty towards the brand. Its clients have some degree of shift towards other renowned brands i.e. Apple. The majority of Corporation consumers want quality as well as cost control. They are brought in towards Corp due to the fact that of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Netflix Srategy Term Paper Case Study Help has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is presently making but long gone are those days when great items were offering themselves. Kim has actually already started to strengthen the marketing activities of Business and really soon it will become one of its core strength like manufacturing if not much better.



Organization runs designs, makes and offer a vast portfolio of customer electronics. It operates in an incredibly competitive environment and has actually effectively placed itself as the maker of quality products. The answer is yes.


As, stated previously that Netflix Srategy Term Paper Case Study Solution operates in a highly competitive environment, which implies all the business have comparable items. The response for rarity is no.


Due to the nature of the market, it is very simple for competitors to understand the performance of the items and quickly make their own models. Yes, Company is only behind IBM in registering brand-new patents yearly, however the benefit is very short term in this industry.


Chairman Lee has totally turnaround Corporation, from going nearly insolvent throughout the Asian monetary crisis of 1997 to the top 25 business in the world. Definitely yes there is proper organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread almost in every country worldwide, majority of the environments like USA, Europe, China etc., are very conductive for its operations. Nevertheless, it faces some political pressures in less industrialized countries where order situation is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Netflix Srategy Term Paper Case Study Analysis operations.


Buying power of clients is essential for companies like Corp to grow and prosper. Emerging markets like India, middle-eastern nations and so on provide growth opportunities, whereas, due to recession even the clients of developed countries suffer badly. Thus it is extremely important for the company to watch on the ongoing financial circumstance of the country prior to entering the market.


Multinational companies need to deal with numerous social and cultural problems throughout its operations in a foreign country. Company has actually also faced many issues however have embraced to the local environments of the majority of the countries remarkably well. It has actually customized its items, practices, policies and so on accordingly in order to be successful.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with consistent ingenious item launches, Netflix Srategy Term Paper Case Study Solution is one of the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it concerns technological advancements, Enterprise has increased to the no 25 of the leading successful companies of the world.


Each country has their own laws and policies, being an international company Corp have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal consequences. So, it has to study or hire a local law specialist prior to beginning its operations in a particular country.


With the increasing awareness among customers about the ethical & ecological violations of business, Organization needs to make sure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some nations the effects can be very extreme. On the other hand it needs to do some Business Social Responsibility practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Alternative

Danger of substitution for Org's each product classification is rather considerable. Factors for high risk of replacement for Netflix Srategy Term Paper Case Study Analysis Smart device consist of the existence of high number of suppliers and Market saturation in industrialized countries, which make the cost of switching for customers practically no. Along with it, Corp printing solutions products are threatened by the increasing attraction of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly among Enterprise and its close competitors is intense. The major factor behind this is the technique of market saturation in numerous number of item categories, forcing Enterprise to present more innovative functions in existing products and brand-new innovative items 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.

Netflix Srategy Term Paper Case Study Analysis has a vast supply chain including about 2700 providers across the world.( Company Sustainability Report, 2016) Provider's bargaining power for Corporation is low as Corp runs economies of scale and its orders are of prospective size and worth. These big orders make it possible for Business to negotiate prices with its providers. Nevertheless, due to incapability of Netflix Srategy Term Paper Case Study Analysis to develop its own software application, it needs to outsource its software advancement to Google, which ends up being a potential supplier of software application for Corporation, resulting in high bargaining power of Google. Although, in the majority of cases Company has a power to negotiate rates, but it provide considerable prices to its suppliers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Haggling power of purchasers for numerous variety of item categories of Organization is intense. Among the aspect causing the intense bargaining power is the schedule of a great deal of rivals in almost each item category i.e. competitors of Venture Smartphone, with a very little distinction. The high accessibility of providers of Mobile phones with minimum distinction, make the changing expense for purchasers practically zero, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the item classifications also make the bargaining power of purchasers more intense in for Netflix Srategy Term Paper Case Study Solution. In spite of igh bargaining power Enterprise is quite efficient in offering its items at a higher price than much of its competitors, due to high-end quality item and a reasonable brand image.

Hazard of New Entrants:

Hazard of brand-new entrants for Netflix Srategy Term Paper Case Study Analysis is quite low. Along with it, requirement of huge knowledge and research and development expenditures for survival in the market also make new entrants reluctant to enter in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Venture's high item diversification offers it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Netflix Srategy Term Paper Case Study Help had a substantial R&D costs on all of its product categories which allow the company to make potential profits from sales of almost all of its items.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in terms of worldwide market share, among 8 different item categories. Org was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Venture profits from chips was less than Intel however its revenues from chips was growing faster than Intel and has grown close to the income levels of Intel, as provided in the case Display 2.

In addition to the chips Enterprise mobile market was also thriving at a high rate than its rivals i.e. Motorola and Nokia. Company's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The major reson behind Venture's high development despite of greater prices than Nokia and Motorola was the business's high-end quality cellular phone.

Enterprise was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The significant reason, making the business allow to obtain the opportunity is its mass production at low expense. Sony was the greatest competitor for Netflix Srategy Term Paper Case Study Solution in LCD market, however, it had actually also started joint endeavor with Org in 2003 for LCD making, decreasing the competition for Venture.

Porter's Competitive Technique

Low Cost Leadership strategy of porter is fully carried out by Corp the method they attain economies of scale by strengthening their core competencies of manufacturing. They always bring something brand-new and innovative whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Netflix Srategy Term Paper Case Study Solution would produce a new brand name image by targeting the more youthful generation of the specific nation. As, especially smart phones of Company are very popular among the younger demographic.


1. It is the best technique to construct Client Life time Value (CLV) by producing a long-lasting relationship with consumers. Develop loyalty through providing worth and profit for long-term, as research study has actually showed it is much cheaper to maintain present customers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker amongst younger people and which in turn will generate brand-new consumers for my products.


1. Old customers who were related to Company before might not like this new image the business is trying to represent.
2 It will incur additional expenditures to reposition some items and it may not even bring success as the patterns alter very quickly amongst the younger group.

Alternative service 2.

Venture has actually made manufacturing its core proficiency for the many part of their organisation and due to which its managers are not afraid to fully step out of their comfort zone. It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get benched. Marketing environment ought to be developed internally first as genuine marketing starts inside the corporation.


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


2. Its con can produce a very unhealthy environment in the work environment, as individuals typically resist change since they fear it.

Identify the very best option

Option is the best as it clearly has more pros due to the fact that as soon as a Consumer Life time Value is developed the company will profit from it till that consumer is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the current aging people. Venture's primary objective is to produce commitment among its clients and make them redeemed it from them and even buy their various items.

Execution Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations sensible and possible.
• A team including best marketing and sales professionals must be assemble, and both views ought to be taken into consideration before protecting the resources required to implement the strategy.
• Thorough communication of the plan should be done as it is really crucial for everybody to be on the same page to make it work.
• Tasks and timelines should be develop and communicated accordingly to each person accountable.
• The supervisor need to use a control panel which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a constant examine the individual and total efficiency.
• Everybody need to be willing to adapt midway since any brand-new pattern or policy might be available in due to which all the important things currently prepared need to be changed. It's better to have contingency strategies already prepared.
• At the end of the project the supervisor need to interact the outcomes and if successful must celebrate with the team.

Budget plan

This change the spending plan allocation of numerous managers and various countries were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia growth potential warranted a 35% allocation while they were getting 45%. It actually helped to relatively distribute the resources and record more clients by investing more on advertisements on the high growth capacity regions of the world.

Its constant financial investment in R&D and ingenious practices have moved them to brand-new heights however for them its' only the start and they desire to be amongst the top 3 brand names in the world. Their marketing efforts ought to be directed towards younger market amid the internal arguments about marketing and need to create Customer Life time Worth as it will not just provide them benefits now however will continue to enjoy it till the customer life time. As the cost of maintaining the customer is much cheaper than attracting a brand-new one.