Expansion of Netflix into Western Europe Essay

Expansion of Netflix into Western Europe Essay

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This article features US-based online subscription television shows and movies service provider, Netflix’s plan to expand into Germany, France, Austria, Belgium, Luxembourg and Switzerland this year (Edwards 2014). Europe’s wide broadband penetration coupled with strong middle class and efficient billing systems poised as an attractive market for Netflix. Netflix also understood that to successfully penetrate across the target markets, they would need to tailor their online content library according to local cultural. The company’s previous expansions had been successful in-lined with their goal of attaining global online dominance (Edwards 2014).
Application of concepts
Netflix is a classic example of ‘Disruptive Innovation’ as it illustrates how a technological vision transformed the industry (Halal 2012). As characterised by Christensen (2008), disruptive innovation disrupts the trajectory by initially providing an inferior performance to existing product and serving a market segment that was not or could not be attended before. The uprising of Netflix disrupted and exerted tremendous pressure on Blockbuster Inc. which eventually filed for bankruptcy (Zalewski 2013). Netflix primarily falls under Radical Change in the Trajectories of Industry changes since core assets and core activities of the business are constantly under challenge (McGahan 2004).
As the entire business model of Netflix surrounds the internet technology, increasing risks of malicious access from external hackers and phishing scams may result in damages of the company’s reputation and dampened growth rate due to customer’s cautiousness (Clough 2011). A common form of social engineering technique known as ‘Pretexting’ invents a scenario to influence vi...

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Smith, R. 2014, ‘Netflix Now Streaming in Ultra HD 4K’, Netflix, web blog post, 02 May, viewed 25 May 2014,
The Hofstede Centre, The Hofstede Centre, viewed 24 May 2014,
Warc 2011, ‘Netflix tops loyalty charts’, Warc, 9 February, viewed 25 May 2014, Warc.
Yar, M. 2005, ‘The global ‘epidemic’ of movie ‘piracy’: crime-wave or social construction?’, Media, Culture & Society, vol. 27, no. 5, pp. 677-696, viewed 28 May 2014, Sage Journals, doi: 10.1177/0163443705055723.
Zalewski, J. 2013, ‘Web-based Labs for Cyberphysical Systems: A Disruptive Technology’, Proceedings of the X World Conference on Computers in Education, Poland, 2-5 July, viewed 29 May 2014,

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