Netflix: Globalization, Technology, Industrial Organization, and Resource-Based Model

Week 3: Strategic Management and Strategic Competitiveness Assignment
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Many different organizations have been achieving greater success worldwide. While some thrive, others shut down a few years into operation fueled by different factors. This paper will look into Netflix, a company that has maintained its competitive edge and lasted for more than two decades. Specifically, this paper will analyze the influence of factors such as globalization, technology, industrial organization model, resource-based model, vision mission, and stakeholders and how they ensure the company's success.
Globalization
Globalization has several aspects, including the company's global expansion, the impact of global competition, and the global economy. Currently, Netflix operates in more than 190 countries, which has significantly impacted the business model. Through global expansion, Netflix has attained a higher subscriber base and diversified its revenue streams. However, it is essential to note that globalization poses challenges, such as navigating different regulatory frameworks. For instance, Netflix faces a challenge with China, especially in navigating its regulatory framework. In terms of competition, globalization results in intense competition from the various streaming services in other countries, such as Amazon Share and Hulu, all competing for a market share. Finally, the global economy impacts Netflix's growth potential in revenue and profits. A challenge arises when the region's economic downtimes affect the company's growth.
Technology
Since Netflix's inception, the company has always utilized technology to deliver services. It was established as a DVD rental service whereby people could place their requests online, and their movie requests could be delivered through postal addresses (Schmidt, 2019). This was a blue ocean invention strategy because the blockbusters used traditional brick and motor methods. Netflix underwent several strategic changes, but the most significant was in 2007, when it introduced online streaming services, which laid the foundation for using Over-the-top services (OTT) (Cebeci et al., 2019). OTT has enabled Netflix to offer services to its consumers anywhere worldwide and through any media device. Netflix has also invested highly in data analytics to improve its content offerings. Data analytics can be defined as the process of examining, transforming, and modeling data to extract insights and information that can be used to inform decision-making. For instance, Netflix's recommendation algorithm is powered by data analytics to appraise the viewer's watch and search history to offer feasible recommendations.
Additionally, Netflix also uses data analytics to understand what content it will be able to produce, which will enable it to retain its client base. The use of data analytics for organizations' growth has been gaining momentum over the years, as it encourages disciplined thinking and focused decision-making (ISACA, 2020). Another way Netflix has leveraged technology is through cloud computing features. It uses Amazon Web Services (AWS) for everything cloud computing. Through this, Netflix can reach its...