Netflix´s Competitive Advantage and Strategies

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Video Rental and Streaming has partly been of the most significant avenues of the general home entertainment industry in the United States for many years. It promotes constructive development through various channels such as Information Technology, Public Multimedia and it also has a huge impact on people’s lives and their entertainment on demand. One of the best companies which provide this high-advanced service is Netflix, Inc (Netflix). It was incorporated on August 29th in 1997 in California by Reed Hastings & Marc Randolph; listed on NASDAQ as NFLX in 2002. Netflix is the world’s largest Internet subscription service streaming television shows and movies with over 40 million members in 40 countries (Netflix, 2013).
Netflix operates in three sections: Domestic DVD, Domestic Streaming and International Streaming. The Domestic DVD section offers DVDs-by-mail subscription services, whereas, the Domestic Streaming engages in access to content delivered over the Internet to various connected devices such as Macs, smart TVs, PCs, mobile devices, Blu-ray players, game consoles, Internet video players and digital video recorders. Besides that, The International Streaming segment provides the streaming services principally in the United Kingdom, Canada, Sweden, Norway, Denmark, Ireland, Finland and Latin America.
In this paper, I would like to analyze Netflix’s distinctive strategies based on their competitive advantage and how it covers from its strategy mistakes in the high threat industry as well as give some viable suggestion for the future development of the company.
Part I. PESTEL ANALYSIS

In terms of the political and legal landscape, Netflix could be involved in changing laws as regards copyrights of confident kinds of con...

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...mpetitive and it is difficult in order to make greatly effort for the company to keep up its competitive advantages. In addition, the company now already has global brand name and customer loyalty as well as reasonably healthy financial situation after recovering some its mistakes. Netflix could build up further its strategic plans through several viably emerging trends in the marketplace such as network neutrality, video gaming along with transmedia properties and second screen engagement. As mentioned, video games and second screen engagement could be good choices and opportunities for the company to be ongoing health in long-term. However, it should also be noted that Netflix must be committed to take action in the greatest way appropriate to international expansion approach, meeting the challenges forward and finally come out on the top of the ladder once more.

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