Global strategy-individual report Essay Example | Topics and Well Written Essays - 2000 words

Global strategy-individual report - Essay Example Netflix is a popular on demand media which is based in California. The company serves most of the developed nations like the United States, Canada, UK, Ireland, Denmark, Netherlands and a few other European nations. The DVD of this company is sent to the public via mail. The company had been operating in the international market since 1997 and the services are mostly subscription based. The company provides digital distribution service to its viewers. The company has a subscriber base of 26 million world-wide and generates revenue of $1.5 billion. The main theme of the mission of Netflix is to be the best brand in the distribution of media and entertainment The values of the company include the following essential characteristics Intelligence Communication Reliability Judgment Creativity Honesty Passion Productivity Selflessness Part I External Analysis In order to analyse the various strategies taken by the company; it is important to incorporate the various tools that would help in the macroeconomic as well as macroeconomic scanning for the company. 1.1 Macro-Environmental Analysis First of all a PESTEL analysis has been conducted which would provide an idea about the macroeconomic environment of the company. Political: The markets in which the company operates are mostly capitalist free market economy. As a result there is not much governmental intervention in the ways in which the company conducts its business (Barney and Hesterly, 2011, pp. 75-82). There is no barrier to the company in form of government regulation and hence there is no requirement for the company to get into any tie ups with the government for fulfilling the bureaucratic needs. Economic The economic aspect which Netflix faces is slowing down. With the Eurozone crisis and current economic slowdown, the business will face stagnation in their subscription base as compared to other years. Social Since the social aspect of different countries is different hence Netflix has to align their marke ting strategy accordingly as per the countries in which they operate. Technological: The introduction of various new technologies in the global market has given rise to a demand among the consumers for a better experience of movie viewing. The opportunities for the consumers have widening as a result of this. Environmental The environmental forces which Netflix faces are constantly changing. They have to face new competitor and hence has to change their marketing strategy accordingly. Legal Each country has own legal aspect of video streaming. This facility is not available in all countries and also there are restrictions on the contents of the Online Streaming which they have to abide by. 1.2 Industry Analysis Porter’s 5 Forces of Competition According to Michael Porter there are 5 competitive forces that drive the competition in a particular industry. The model can be represented in a better way with the help of the diagram in