Question

2. Chapter 1 introduces the subject of Strategy. What are the characteristics of a successful strategy and how has Netflix performed in regards to each of these characteristics?

Answer 1

Before understanding the characteristics that Netflix shares for the success, wr have to understand what are the four basic characteristics of a good strategy are which made Netflix achieve its heights:

1. goals that are simple and long term: Netfix before reaching these heights have strategically designed the most basic and long lasting goals for the organisation. The mission and the goal was simple, to reach the customers in the market and provide them good quality streaming where they cannot find such original and good content at an affordable prices. Even if you read the mission and the vision statement of the organisation, they talk about choosing the sustainability by serving customers and their needs at large, which is an important element for the organisation to grow.

2. understanding of the competitive environment: another characteristic for the good strategy is the understanding of the market. Before entering into any kind of industry, Netflix has done its bit by analysing the market which are serving the same content as the are. As not many competitiors were there, Netflix was the first big company to start the online streaming as a business. Later on AmazonPrime and many other joined but the analysis of the strategical competitiors available, makes the Netflix still be at the top most for its industry and domain.  

3. appraisal of the resources: Netflix not only creates a differential strategy by providing exclusive shows and content, but also has a cost leadership as well. By utilising all of its best resources available to it, being it the human resource, strategical capabilities of the organisation, the research and development partners; everything Netflix does, it is done by the appraisals of the resources. It upgrades and blend with the change in technology and the market happening around to achieve sustainability.

4. effective implementation: At last, the effective implementation of the above mentioned points. As we all know, even in this time of covid-19, Netflix is trying its fullest to serve every customer of their by providing the best quality and also the shows at a price below than average to make people stay at home and also increase the profit. Both economical and societal goals are meet, which is the effective implementation.