Netflix Inc.’s Top Priorities and Long-Term Strategy

Subject: Case Studies
Pages: 3
Words: 551
Reading time:
2 min
Study level: College


Netflix has a long-term strategy of providing its subscribers with a wide range of DVD titles. Acquiring new content is an important process for the company as its customers are always expecting it. This requirement compels to developing relationships with video producing companies. The company provides its subscribers with a list of TV shows that might interest them. Also, it has developed a website and application which allows scrolling through the DVD list. The company has traditionally used the strategy of fast mail DVDs delivery, and it has also expanded the availability of its content through streaming.

Netflix highly values marketing, and it is a part of the strategy used to harness a larger market share regionally and internationally. The company has spent millions of dollars on Netflix’s brand marketing plan with the purpose to create awareness among new potential subscribers across the world. The company has also focused on promoting the content streaming because it aims at eliminating the email delivery service.

Top priority issues

The top priority should be attaining consistency in Netflix’s delivery service strategy. In the 2011-2012 fiscal year, the CEO of Netflix demonstrated some incompetence in making strategic decisions, and the main issue appeared to be sudden fundamental changes made by the company. Subscribers prefer services that are stable and consistent.

Netflix also needs to prioritize satisfying customer’s needs in the United States. The company has lost many subscribers owing to poor decision-making, but it can entice them back. Instead of focusing too much energy on the international market, the company should look into harnessing a larger market share locally.

One more priority, Netflix should also pay attention to is enhancing its competitive power. A critical view of the company’s case reveals that stiff competition is among the issues that have led to its downfall in the American market. The management needs to prioritize these three issues.

Recommended strategy

Netflix has the potential to rise back to its leadership position in the entertainment industry. The downfall of the company started when the CEO developed a novel strategy for streaming content and mail delivery prices increasing. The company should look into developing a business strategy that attains consistency for the subscribers. Sudden changes and increments in the prices of subscription services should be avoided by all means.

The company should also focus on providing its products under one website and brand. Netflix is a popular brand that can make good sales if the price is kept at a competitive level. It has lost its glory in the local market because of a lack of consistency, but it can regain popularity if it follows the people’s will. The company should take a course into identifying the needs of the American people to develop dominance in the market. Shifting in the international market has proved to be a hectic project that does not guarantee profits. Competition in the market is quite stiff, and most successful companies are the ones working hand-in-hand with strategic partners. In the TV entertainment industry, the ability to continue increasing the shows and movies available for subscribers is crucial. It is also important to continue diversifying the nature of the services provided to subscribers faster than the rival companies. Netflix should focus on venturing into business processes in order to minimize financial liabilities.