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Netflix: Global Strategies and tactics

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Netflix: Global Strategies and tactics

Netflix is one of the most widely known entertainment website that provides millions of customers with engaging content such as movies, web series, animated cartoons across the globe. Netflix has been providing its service for more than two decades now; it was founded in 1997 by two start-up enthusiasts known as Marc Randolph and Reed Hastings to provide the service of online movie rentals. The company started with low capital and workforce and was providing limited titles to its customers, as they were the only DVDs available in print at that time. The charges of rental at that time was approx. 4$ and additional charges incurred if postage was involved. After achieving a positive response from the customers, and significant growth, the company shifted towards a subscriber-based model, which allowed it to grow tenfold.
Mission/Vision
The mission of Netflix is to entertain the world by providing services irrespective of taste, location, and preferences. The CEO of Netflix, Reed Hastings, aims to provide entertainment services to people worldwide as they have access to millions of content in the palm of their hands (Jenner, M. (2018). The company caters its services to every person that belongs to different races, ethnicity, and geolocation. The members of the entertainment service have full control of what to watch and when to watch it without any interruption of ads just by buying a single subscription. The vision of Netflix is to continue being the leader of the internet entertainment era. The vision statement is aligned with the company’s mission statement that helps highlight the strategic objective that entails being top in the competition while considered other big players like Amazon, Hulu, and much more. Netflix states that it would keep leading the market by providing its customers with attractive entertainment services. Netflix focuses on the main points leading to its success, which include: Continuing leaders, the Internet, and Entertainment.
Addressing the problems
Netflix is a service-providing company that gives its customer a subscription-based streaming service that would allow them to watch their favorite movies and TV shows anytime and anywhere around the world. The basic aim of starting the business was to provide the customers with a service they were facing problems. At that time, there were ample issues relating to the availability of movie titles and affordability issues (Goldfayn, A. L. (2012). Netflix came in as a problem solver and provided the customers with an option to rent out a movie title for as low as 4$, and after selecting the moving and making the payment, the title gets mailed to the customer. After its rental success, the company owners had to future proof the business they had developed, so the company had shifted towards streaming services. The company had shifted its focus from rental and improving the delivery of DVDs towards providing its customers with an online streaming service to enjoy all their movie titles in one place. There was no such streaming service provided at that time, so Netflix provided its groundbreaking services to the customers and reinvented the entertainment delivery by providing its customers with a service where they can instantly access thousands of the latest titles that can be watched on any device.
Target Audience
Netflix is a diverse company as it provides its services to all customers irrespective of their age, race, or preferences. Netflix has diversified content that is available for everybody. For instance, Netflix has content for toddlers that goes up to old age people, which shows the diversity involved in the company’s service (Jenner, M. (2018). Although according to research it showed that 89% of the subscribers of Netflix are aged between 18 and 24, and there is also a handful of 25-39 years old. Netflix is an expensive service that everyone cannot afford. However, they have different plans such as single screen, double screen, and family that can be purchased according to the financial stability of the users.
Solutions and Funding
Netflix is a futuristic company that aims to foresee the future and build a strong strategy that would help it to achieve a competitive advantage for the times to come. The company developed the solution by looking at the problems faced by the customers and the ever-changing demands of society. Being a future-proof company, it had developed a streaming service that would provide its customers with all the latest titles on their screen while sitting in the vicinity of their homes. Netflix is a multi-million-dollar company that has been able to raise funds through different investors. There are approx. Seven investors are involved in acquiring the funds for running the company. The first funding was received after being registered in the stock market with an IPO stock opening of 15$ in 2002. The most common and recent investors of Netflix are TCV and TCV, and it had also made a few investments and acquisitions that had made it accumulate capital.
Service Provider/Challenges/Future
The world has become a technological hub. Every person is connected to the internet; after seeing these improvements, Netflix started providing online streaming services as most people had used the internet for their work and leisure. Through the internet, Netflix developed its app and websites to log in and enjoy its services without any interruption or issues. The most common challenge that the company is facing is competition in the market. There are different streaming websites such as Amazon Prime, Hulu, HBO, which compels Netflix to produce new content every once in a while to stay in the top leading position. Netflix is a futuristic company and has always remained a step ahead in the market, so it is working on expanding its services to every country/city across the globe (Jenner, M. (2018). They have different plans which they are working on and will implement soon as the time comes.
Conclusion
Netflix has become a household brand, and every internet user has extensive knowledge and access to Netflix. It is striving to enhance its services and expand its portfolio to attract more customers to the platform and become loyal users. There is a lot to see from Netflix as the technology progresses.

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