Just like any other company, Netflix has implemented several measures of ensuring that it emerges successfully ahead of its business rivals. The elaborate plans usually vary, depending on the level of completion posed by the competitors. On most occasions, many companies apply either one or a combination of several business strategies to leave behind their business counterparts. These strategies vary from blocking newcomers in the market to establishing the differentiation, forming a good leadership platform and retaining customers (Fine 89). These strategies play a vital role in determining the position of any competitive and successful firm in the business sector; basically, a company should also implement the measures of ensuring that there is proper utilization of the resources within and outside the company. This will allow the entire firm to forge ahead of its major competitors.
Competition in any business is viewed as a motivation; therefore, any business firm will work tirelessly in order to ensure that it comes up with appropriate mechanisms of edging out its main business competitors. On the other hand, a firm should possess exceptionally unique skills, which are not easily imitated by other competitors; as a result, the firm will stand a higher chance of keeping its competitors at bay and retaining a larger fraction of its customers. Netflix implements several strategic measures in order to ensure that its business areas are diversified to cater to different needs of its customers. Moreover, the company has enjoyed success in the market due to its ability to deliver quality services to its customers (“SWOT Analysis1: Looking Outside for Threats and Opportunities” 67). Generally, they offer several services, which range from a wide optional choice of content to a highly rated web site, which is regarded as more useful to its dedicated users.
The management staff of Netflix is believed to have taken the lead over their core rivals in business due to their ability to offer their customers diverse and unique movie selection options, varying from direct to streaming for a whole month for a very low price. Therefore, Netflix has gained an advantage in the market for providing its customers with a variety of benefits. This has resulted into Netflix providing movies and TV programs in high definition, streaming though the Internet-enabled systems; however, this comes as an additional option to the previously available options of DVDs and the Blu-ray discs, which were availed either for hire or permanent sale, but these services were also provided through the web site or the Internet, and their delivery was realized by post. Netflix is rated as the biggest provider of movies and TV programs streaming worldwide with a total subscription of more than 12 million and over 100,000 discs for hire (“SWOT Analysis1: Looking Outside for Threats and Opportunities” 45).
Netflix took a cost-saving strategy step by step while partnering with other major sources of movies and TV shows providers in the same sector with the core aim of solidifying their relationship with several stakeholders in the entertainment sector with the inclusion of studio owners, marketers and distributors in this sector. In addition, it has also set up measures, which have enabled the firm to agree with other related stakeholders in sharing the revenue, agreements of direct buying and agreements related to licensing. This program of cost-sharing transformed into a considerably helpful project after the amount, which was saved from implementing this strategy and was further used by the firm to fund other projects within the company.
The main way through which Netflix managed to forge ahead of their competitors is by developing a competitive combination of both streaming and hiring of discs, which is developed through the services offered by the company on the Internet, which entails algorithms for movie recommendations. This has enabled clients to have a variety of selections, thus, adding value to their entrainment sector. Clients of Netflix have been provided with freedom of interaction with the management staff on their website, and they have also been provided with a further option of selecting a wish list of the content they want to watch. The firm has also come up with an appropriate way of retaining its high number of customers and users by setting up an inclined connection with the information and communication sector, thus, being in a position of creating a trustworthy platform, which easily connects to all types of browsers and portals.
In order to retain and serve a large number of its loyal users appropriately, Netflix opted to go for the unlimited view of movies and several episodes of television shows by its subscribers either on their television sets or their personal computers. Customers also have the privilege of enjoying different models of pricing, therefore, they rarely worry about late fees, the cost paid per item viewed, due dates and charges incurred for every postage. The firm has also implemented a throttling method, which plays a vital role in balancing both the infrequent and frequent use and distribution of the requested items by different customers. The main reason for applying this method was to attract more clients and customers who use its services infrequently.
With the purpose of standing higher chances of staying stable and avoiding possible bankruptcy in the future, any company or firm should implement appropriate measures of coping with any form of both local and international break down or gradual growth of the business. This demands an immediate setting of policies, which ensure that money as a factor of business growth is given the first priority to counter the slow growth in business both locally and internationally. Therefore, in order to deal with negative effects, which can arise with regard to the monetary policy, there is a need of stimulating the market demand in order to come up with the fastest effect (Porter 56). This can be possibly attained if the set framework of policies is well kept in place and maintained appropriately. Quick and effective decisions should be made to enable the financial system to grow stable. On the other hand, sectors like the infrastructure should be well catered for; however, this might turn out to be difficult, but possible if the level of interest rates is lowered to a suitable and affordable level.
The rate, at which technology is growing, poses a substantial threat to the long- term market growth. On the whole, the rise in technology comes with many challenges as it will totally complicate the entire subscription of clients and deprive suppliers of their customers since they will be able to access the same services from other sources and providers in an exceptionally easier and cheaper way. Thus, this reduces or lowers the market demand for Netflix and other companies which provide the same services (Fine 13). Firms will have to come up with other strategies of dealing with this challenge; in this case, they will have to merge their companies or opt to work with third parties as a measure of utilizing the fading away market demand.
In order to maintain its position in the market, Netflix should embrace a number of recommendations made. Moreover, it should ideally come up with new business strategies, which correlate with the latest technology, rise in competition and the fluctuation in customer behavior. While relying on the well-developed network of resources, skills, and capabilities, Netflix should make proper use of its competencies to leave behind its major competitors. The combination of several strategies has played a vital role in terms of the success of Netflix as a company.