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Netflix's Strategies at Corporate Level and Division Level

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Netflix, a multi-billion dollar subscription service company, was founded in 1997 by Reed Hastings and Marc Randolph in California, USA. It is said that Reed Hastings was charged a $40 late fine after renting the film Apollo 13 from Blockbusters and that this inspired him to set up Netflix as a DVD-by-mail service

It quickly expanded by introducing steaming media online and is now accessible in over 190 countries worldwide. In 2013 Netflix diversified into the content production industry and this foresight gave them the edge which paved the way to becoming the leader in the Streaming market, more popular than Amazon Price and Hulu.

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In relation to strategic management at the business level, Netflix is a good example considering the various strategies that the management, led by Reed Hastings has been able to develop. Through decades, Netflix organization has been forced by both the internal and external factors to develop sustainable strategies in order to coup with the ever changing business environment. Good team working has also enabled Hastings to maintain the business at the top position when compared with other businesses offering similar services across the country

The company has also been credited for pioneering online DVD rentals, a strategy that played a major role in the entertainment industry especially in late 1990s. Initially, this is because the DVD industry had a lot of business gaps as it was still new in the market hence both marketing and technological strategies were necessary. The given simulation report aims at analyzing both the internal and external strategic systems of Netflix Company in relation to drivers of industry development and business system model. One of the major strategies responsible for the overall success of the Netflix Company is the availability of various strategic resources responsible for smooth running of the organization. The management was able to utilize intangible resources available with the aim of propelling the business at the top in the industry.Netflix is a media distribution company. It started with DVD distribution via mail, but has evolved substantially over the course of its existence. Today, Netflix is focused on streaming video. Some of its content is licensed, and some of the content is produced in-house.

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A firm’s organizational structure is the practical manifestation of organizational design elements that influence how various components of the business function and work together. In this business analysis case, Netflix’s structural framework provides the necessary form and composition to ensure that the business responds well to changes in consumer preferences. Through its corporate structure, the online enterprise keeps its corporate headquarters up-to-date with operational concerns that require changes in strategic management direction (Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). Netflix Inc.’s corporate structure is based on the business need to make rapid decisions as a way to respond to changes in the online entertainment market. This organizational structure allows the company to effectively perform against strong competitors, such as Amazon, Walmart, Apple, YouTube (Google), Disney, and HBO, among others. Netflix Inc.’s business model, generic strategy for competitive advantage, and intensive growth strategies are all linked to the company’s corporate structure and how its configuration supports strategic implementations (Schildt, H

(2017). Netflix Inc. has a U-form or unitary organizational structure that involves a hierarchy for maintaining executive control and direction throughout the organization. However, this corporate structure is relatively flat compared to many businesses that have a hierarchical organizational architecture.

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In any event, Netflix is well positioned and pursuinga high growth strategy, with the companyclaiming a presence in 212 distinct territories.This makes it possibly the only, or at the veryleast one of the rare OTT subscription networkswho is in a position to effectively acquire andexploit global rights

This advantage is coming toan end rapidly as new entrants and contentproviders kickstart their own OTT networks andexpand globally; a state of affairs which justifiesNetflix’s 2013 pivot and the shift of its focus fromits acquisition department to Netflix Studios, thecorporation's production division.

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Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The Boundaryless Organization: Breaking the Chains of Organizational Structure. John Wiley & Sons.

Baskici, C., & Ercil, Y. (2018). Corporate structure analysis of organizations from network perspective. Research Journal of Business and Management, 5(3), 231-237.

Salimova, T. A., Biryukova, L. I., Makolov, V. I., & Levina, T. A. (2015). Conceptual Provisions of Formation of the Quality Management System Within the Integrated Corporate Structure. International Business Management, 9(6), 1129-1135.

Schildt, H. (2017). Big data and organizational design – the brave new world of algorithmic management and computer augmented transparency. Innovation, 19(1), 23-30.

Winnubst, J. (2017). Organizational structure, social support, and burnout. In Professional Burnout (pp. 151-162). Routledge.

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