Global Strategy Research Paper - Netflix in China

Netflix in China – week 1 assignment

Student ID 52769 Joana Veronezi

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Netflix in China – week 1 assignment

Student ID 52769 Joana Veronezi

JOANA OLIVEIRA VERONEZI

SOUTHERN STATES UNIVERSITY

BU536: GLOBAL STRATEGY AND MANAGEMENT

DR. KIM, RACHEL

04/12/19

The company that was chosen for this project is Netflix. Netflix is already an international company that works almost in every country of the world. As Netflix itself says: “Netflix is entertainment at lower cost and greater scale than the world has ever seen. We want to entertain everyone, and make the world smile.” (Netflix, 2019). In other words, Netflix provides movies, TV shows and documentaries for a small amount payment by users per month. The company is available in almost every country, with the exception of China, Crimea, North Korea and Syria, all because of US government restrictions on American companies. (Netflix, 2019).

Netflix is increasing fast if we look to their background history. As Netflix company website (2019) cites, “the company started on 1997 by offering online movie rentals and further on it launches the first DVD rental and sales website. In 1999, Netflix founders decided to rent unlimited DVDs for one low monthly price for subscribers. In 2002, Netflix goes to public market on NASDAQ with 600,000 users in the U.S., and in 2005 Netflix subscribers rises to 4.2 million. In 2011, the brand was available on Latin America and the Caribbean and a year later, was available in United Kingdom, Ireland and Nordic Countries and after a while in 2016 was available everywhere, except for China, Crimea, North Korea and Syria. From than to nowadays, Netflix became much more than just offering industries movies to people watch, but also Netflix becomes producers and studios, creating TV shows and movies worthy of Oscar.”

The country that was chosen to take Netflix in, is China. And since China has low uncertainty avoidance, being 30% as Hofstede insights specified (2019), and is the most popular country and have advanced technology that people really don’t leave behind to know what’s new, there are strong reasons to believe that NETFLIX can easily be a success in China.

As Ahlstrom, D. & Bruton, G. D. (2010), technology is one of the drivers of internationalization. Innovation in computerizing, telecommunication, speed of connection, all made easier for companies to become global. In this case, Netflix is all about technology and connection. For a customer to have Netflix, the only need is having internet connection and also a banking account to make monthly payments. This app can be watched in cellphone, computer or TV screen.

References

Netflix (2019). About netflix. Media center about netflix. Retrieve from:

https://media.netflix.com/en/about-netflix

Hofstede Insights (2019). Country comparison. Retrieve from: https://www.hofstede-

insights.com/country-comparison/china/

Netflix (2019). Netflix culture. Retrieve from: https://jobs.netflix.com/culture

Ahlstrom, D. & Bruton, G. D. (2010). International management: strategy and culture in the

emerging world. Mason, OH: South-Western Cengage Learning. (ISBN 0-324-40631-2)