Question

With a focus on the resource-based view of the firm discussion in Chapter 3, provide four observations to support how can you justify a company like Netflix’s strategy being more focused on its resources and capabilities rather than specific customer needs?

Answer 1

Ans1: Resource-Based strategy: It is a company's valuable model that sees resources as a key element to firm performance and competitive capabilities to deliver value to customers. It gives a long term benefit to the company.  Resources that are valuable, rare, difficult to intimate and non-substiutable can provide the foundation to develop firm capabilities that can lead to superior performance over time.

Netflix Inc: It is a global leading streaming entertainment service provider to millions of people. they are providing TV series, documentaries and feature films via the internet.

Netflix's strategy as a resource model :

1. Netflix Inc. follows the VRIO analysis framework, by this competency the online company reflects resources and capabilities that support long term competitive advantage.
2. The company presents a resource-based view of the on-demand media streaming business and identifies the most significant resources and capabilities for sustainable competitive advantages.
3. Netflix inc's generic strategy is cost leadership, it ensures competitive advantage through minimized cost and minimised selling price.
4. This generic strategy enables the online entertainment company's business model's competitiveness based on low cost and affordable prices.
5. With the help of generic strategy, Netflix broadly acquires more customers in the online entertainment market, in contrast, to focus on strategies that concentrate on the market segment.
6. Netflix works on its resources sustainable and always provides original content with an intensive resource strategy.
7. It has several resources and competencies that give the company a competitive advantage, for instance, their reputation is valuable, and rare resource due to exclusive series like the house of cards, orange is the new black that provides global reputation. the investment in content is rare and valuable.

So, we can observe with the generic strategy that company follows it gives us an insight that they are more focused on resource-based strategy, VIRO analysis, providing original content, gathering every type of market segment whether it is young, middle age, child and old age they are providing all types of content to all the age group.