Global Business Plan

5

Competitive advantage 

Christopher Brookins

MGT/411

9/6/2021

Douglas Tobe

Competitive advantage 

According to Robert D. Hisrich and Claudine Kearney (2014), maintaining a competitive advantage requires companies to participate in six processes. Businesses that are adaptable, proactive, engaged, reactive, focused, and involved in research and development are more likely to conform to the diverse outside environments, create changes in the surroundings, and survive the competition. For example, Reed Hastings and Marc Randolph started Netflix in 1997. Netflix began as a mail-order DVD business and has now evolved into an internet streaming behemoth. Netflix is a low-cost service that provides customers with movies, Netflix original video programming, and television episodes. The reality is that Netflix has not always been profitable; in reality, in 2011, they had a major layoff that led to the loss of eight hundred thousand workers. However, sales eventually recovered, and they are again among the top competitors in their industry.

Six steps to preserve innovation and competitive advantage

Netflix has a significant competitive advantage since its DVD mail-order delivery business recycles DVDs from client to client; they additionally send through normal postal delivery, which is advantageous for the customer because it eliminates travel time. Online streaming may be done instantly and from a variety of devices. The service costs less than other options, and consumers can join up and get a free month of renting upon membership (Jackson & Carruthers, 2019). With their internet streaming service, the firm pushed its operation into households across the country, which is difficult to compete with. The Corporations wide range of genres changes regularly to provide viewers with new content. The first step for sustaining innovation is for the company to adjust to external changes in the environment that are beyond their control and may impact their operations. The five components of an organization's external environment are government, public opinion, the economy, consumers, and competition (Kearney & Hisrich, 2014).

Netflix has a massive customer base and offers its services lower than cable and satellite providers. The business is subject to few government restrictions, although subscribers engage in a formal agreement. Overall, the popular perception of Netflix is favorable; as a user, I like their services may be more than cable or satellite, owing to the lack of advertising and price. Netflix's program choices are constantly changing, and they provide popular material to its consumers commercial-free. They are a customer-driven business that provides several options and suggests movies depending on user preferences (Rataul et al., 2018). Their business provides international history, comedy, horror, documentaries, bibliographies, independent movies, television, and other media to a wide range of consumers. It also includes a movie category geared at the homosexual and lesbian community.

Netflix's primary approach is technology, which it has successfully implemented. Netflix has already shown its ability to adapt to the quick speed of change in the environment, as they have built their company on the rapidly expanding usage of technology. Regardless of the competition, Netflix already has the user base and popularity required to retain its competitive advantage. Netflix's original programming has also propelled the company to new heights.

Philosophy on Innovation

According to Netflix, you should dream big, fail fast, start small, and expand rapidly when it comes to innovation. Reed Hastings' ultimate aim was to provide internet streaming, but he needed to start someplace. The mail-order DVD business was a stepping stone that provided him with the money to do video streaming research. He didn't give up on his objective, spending almost ten million dollars each year on streaming research, which paid off after ten years. Netflix dramatically transformed this market by bringing "disruptive innovation," totally outperforming Blockbuster (Jackson & Carruthers, 2019). Their original series, which has been very popular, is one of their current innovative initiatives. House of Cards, Bloodline, Narcos, Orange Is the New Black, and more prominent Netflix original series include The Corporation, which has received many Emmy nominations and is very well-liked. Top actors, directors, and producers appear in Netflix's original projects. Netflix outperforms its rivals because of a game-changing invention that changed the way movie rentals worked (Rataul et al., 2018). Their creative creations, which are growing more popular, help them to maintain their uniqueness.

Conclusion

Reed Hastings had a mission for his business and sought to achieve it via internet streaming research and development. After ten years of hard work and a hundred million dollars, his idea took flight and transformed the market. The approach of offering a mail-order DVD business eventually paid for the launch of streaming subscriptions. Netflix managed their company effectively; even when they hit a snag, they rebounded and came back strong. The idea of video streaming is brilliant, particularly in light of the increasing technological advances and Internet services. The business distinguishes itself via its original Netflix productions and distribution services.

References

Jackson, P., & Carruthers, C. (2019). Data Driven Business Transformation: How to Disrupt, Innovate and Stay Ahead of the Competition. John Wiley & Sons. https://books.google.co.ke/books?hl=en&lr=&id=HBKIDwAAQBAJ&oi=fnd&pg=PR9&dq=How+Netflix+Innovates+and+Wins.+&ots=H_khK3qIYk&sig=QJq2itwhnUEqEb3NrPyw9N9HFjs&redir_esc=y#v=onepage&q=How%20Netflix%20Innovates%20and%20Wins.&f=false

Kearney, C., & Hisrich, R. D. (2014). Entrepreneurship in developing economies: transformation, barriers and infrastructure. In Necessity Entrepreneurs. Edward Elgar Publishing. https://www.elgaronline.com/view/edcoll/9781781956175/9781781956175.00015.xml

Rataul, P., Tisch, D. G., & Zámborský, P. (2018). Netflix: Dynamic capabilities for global success. SAGE Publications: SAGE Business Cases Originals. https://sk.sagepub.com/cases/netflix-dynamic-capabilities-for-global-success