Netflix International expansion

Porter´s five forces model

Strengts

• Subscription Model Original content Range of content Brand Recognition Accesibility

Weakness

• Limited Regional Content Global Pricing Lack of adaptación to new countries culture Limitaciones (languores and content avaliability Low negotitation power with local providers Reliance on content providers)

Opportunities

• Growing Audience Strategic Partnerships (Yoshimoto Kongo) Integration to mobile platforms New market segments

Threats

• High cost in global licencia deals Low acces to internet in developing countries Country´s infraestructure dependance to support widespread streaming services Censorship Policies Competimos expansion Loss of key partnerships Innability to enter to such a big country like China

Strategic suggestions

• I would recomend Netflix to make strategic alliaces with live streaming services, such as sports and press conferences. This would give again a competitive advantage to their services. Not to stuck with their business model just like Blockbuster did is a good strategy for them to keep growing. Before entering to a new countries they shoud make a high investment on investigating their culture, in order to show value content to their potential consumes. They also should adapt their content to local languores so they don´t feel excluded in order to make an engagement with the brand. They should investí more in their legal department in order to embarcó the regulatory challenges in a much more efficient way Adapt original content to avoid censorships in local countries.

Competitive Advantages

• Netflix has a lot of competitive advantages that´s why their model business has been a success. First of all they were the first company to create this innovative industrie 100% reliable to internet network. They fucus a lot in user experience model, avoiding advertising which frankly everybody hates, also they made some of their content available for download into mobile phones and tablets. Their original content has been a success around the competition, and their subscription model is very friendly to their custumers by giving them free trials to test them out and make a long term enrollment. Their strategic alliences have been undoubtley a huge competitive adventage.

Suggestions to overcome international market challenges

• My first suggestion would be to put on the shoes of their international market costumers. They need to invest a lot of money on investigation before going into new markets, custumers usually don´t give second chances if they don´t like the product the first time. A recomendation if they already did this would be to create viral content so people that are not using netflix give them a second chance. A good example would be in Mexico with the Luis Miguel series, that created a FOMO (fear of missing out) experience in social media and memes. Investiga in a much bigger legal department to overcome restrictions is also a great idea to enter the chinese market, but also regulate their content so they don´t have problems with the law and lose market and costumers.