Netflix value chain analysis. Solved Porter Value Chain : Netflix Analysis 2022-10-19
Netflix value chain analysis
Netflix is a leading entertainment company that offers a subscription-based streaming service for movies and television series, including those produced in-house. The company has disrupted the traditional model of television and film distribution and has transformed the way people consume entertainment. In this essay, we will conduct a value chain analysis of Netflix to understand the various activities the company engages in to create value for its customers and stakeholders.
The primary activities of the value chain for Netflix include inbound logistics, operations, outbound logistics, marketing and sales, and customer service.
In terms of inbound logistics, Netflix acquires the rights to stream movies and television series from various content creators, including studios, networks, and independent producers. It also invests heavily in producing its own original content, such as popular series like "Stranger Things" and "The Crown." The company has to negotiate licensing deals and contracts with these content creators and ensure that it has the necessary rights to stream their content on its platform.
The operations of Netflix involve the actual streaming of content to its customers. The company has a sophisticated technology infrastructure that enables it to deliver high-quality streaming services to its customers. It uses a combination of proprietary algorithms and human curation to recommend content to its users based on their preferences and viewing history.
In terms of outbound logistics, Netflix delivers its content to customers through its streaming platform, which is available on a wide range of devices, including smart TVs, smartphones, tablets, and computers. The company has to ensure that its platform is available and accessible to its customers at all times and that it can handle the high volume of traffic it receives.
The marketing and sales activities of Netflix involve promoting its service to potential customers and acquiring new subscribers. The company uses a variety of marketing channels, including social media, television and online advertising, and partnerships with device manufacturers. It also offers free trial periods to attract new subscribers and has a flexible pricing model that allows customers to choose from different subscription plans.
Finally, Netflix's customer service includes providing support to its subscribers, such as helping them troubleshoot technical issues and answering questions about the service. The company also solicits feedback from its customers to improve the user experience and ensure that it is meeting their needs.
In conclusion, Netflix's value chain involves a range of activities that enable it to create value for its customers and stakeholders. By acquiring the rights to stream a wide range of content and investing in the production of its own original series, the company is able to offer a diverse and compelling catalog of movies and television shows to its subscribers. Its sophisticated technology infrastructure and marketing efforts help it to acquire and retain subscribers, while its customer service helps to ensure that its users have a positive experience with the service.
Solved Porter Value Chain : Netflix: Valuing a New Business Model Analysis
Company Differentiation Advantage Netflix can obtain the differentiation advantage by analysing different value chain activities. The authors are affiliated with Institute of Management Technology, Ghaziabad. Netflix's complete business model is based on advanced technology. If product differentiation is the aim of Netflix, Value Chain Analysis will help the company in maximising the efficiency and enhancing the product quality by improving processes. It included promotions and advertisements to expand the customer base.
Netflix Business Model
Its global presence and quality products have made the company a standard for all companies within the industry. Shareholder value, measured by stock price, is not a good barometer to analyze value chain. Effective and wisely integrated marketing activities can develop the brand equity of Netflix and help it stand out from the competition. Management Decision, 53 8 , 1806-1822. It means that when these expire, the content will go off the platform. The reason may be specific to customers, for example, liking a TV series that is only available on Netflix. Netflix makes sure that it has access to original and in-demand content.
Now, the information in the Netflix value chain is digital media. The company invests heavily in original content worldwide in different local languages. Subscribers to the platform have a huge catalog of films, series, documentaries, and television shows at their disposal, to be watched anytime and through any device connected to the internet smartphone, smart TV, laptop, etc. Without analysing the in-bound logistics, Netflix Inc can face various challenges in product development phases. It can also analyse the operational activities to expand the presence in geographically dispersed areas. Firm infrastructure activities at Netflix Streaming supports entire value chain though the scope varies given that Netflix Streaming is a diversified company even within the industry. In this business analysis case, Netflix Inc.
Netflix SWOT Analysis [2022 Updated]
Outbound Logistics Netflix Svod under takes these activities to distribute the finished products to channel partners and final buyers. And, in the following years, the company would win Academy Awards for some of its original productions. Published by HBR Publications. Porter, Competitive Strategy New York: Free Press, 1980 Francois Brochet, Suraj Srinivasan, Michael Norris 2018 , "Netflix: Valuing a New Business Model Harvard Business Review Case Study. To conduct industry structure analysis Porter developed Five Forces Model, and to understand the sources of competitive advantage of the firm in relation to competitors in that industry Porter developed Value Chain Analysis Method. In 2020, the company became the largest streaming capital in terms of market capitalization.
Value Chain Analysis Of Netflix
Constant analysis and optimization are the foundation of marketing the Netflix model. As an online business that depends on innovative ideas and data on market and consumer trends, the company utilizes its organizational culture to support the effective and efficient dissemination of information to guide strategic decisions and management initiatives. What was the best path forward? Technology Development: Netflix develops a technology which allow its viewers to watch high quality contents Laporte,2017. The company can also achieve its cost minimisation objectives by analysing hiring and training costs with their relative return. Published by HBR Publications.
Netflix Value Chain Analysis
Starbucks places high importance to analysing value chain activities and has successfully opened direct stores in more than 50 countries. Like all other value chain activities procurement also employs technology for things such as — procedures, vendor management, information system, and supply chain partner qualification rules and ongoing performance evaluation. For example, Netflix might have better videos than Amazon Prime. Founded in 1997 by Reed Hastings, the company has captured a majority portion of the US market. Some examples of operational activities are machining, packing, assembling and testing. It is something the company can turn into a strength.
Netflix Inc.’s Organizational Culture & Its Strategic Implications
If Netflix Blockbuster have a real competitive advantage, it means that compared to its rivals Netflix Blockbuster is - operating at lower costs, commanding a premium price, or doing both. Similarly, these production houses allow Netflix access to the latest content. Primary activities aim to create profit and value in the business that exceeds the cost incurred on developing products or services. For example the finance and planning at Netflix Blockbuster are managed at corporate level while quality management, accounting and legal issues are managed at business unit level. The impact of strategic organizational orientations on green supply chain management and firm performance. The power of negative e-WOM due to poor support service cannot be undermined in the current technologically advanced era.
Netflix Value Chain Analysis [2022 Updated]
. The modern customers consider post-sale services as important as marketing and promotional activities. Growth or market share is also not a very reliable goal as often firms end up pursuing market share at the cost of profitability. After understanding the relative importance of identified value chain activities, Netflix Inc should highlight areas where value can be added, cost efficiency can be achieved, differentiation basis can be set, or processes can be optimised. Key subsidiaries DVD Netflix DVD. Its support team helps customers with their queries in real-time, which may include account issues or payment issues. Netflix will also lose out on having access to new titles, potentially giving their competitors an advantage on sales.
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The company is one of the oldest and most popular brands in the online streaming market. The cloud infrastructure from its operations connects with outbound logistics to provide customers with the fastest streaming services. The unexpected interruption in the information flow can affect the customer-supplier relationship. Instead of ordering that lobster and that really expensive food, maybe you want to just have burgers and fries. Analysis of operational activities is important for improving productivity, maximising the efficiency and ensuring the competitive success of Netflix. Marketing and Sales: Netflix marketing is an innovative, agile approach based on brand development through customer relationship management. The digital content companies provide their media to Netflix at optimum costs, so Netflix gains and increases its profits.