Question

Based on the organizational background of Netflix's of:

Goals and mission

The products, goods, or services provided by the chosen company

A description of the customer base of the company

An overview of the markets served, including their current market share

Identification of the company’s major competitors

A description of the organizational structure (including overall responsibilities of the board of directors)

A breakdown of the company’s employee demographics

Based on researching the following info, What decisions need to be addressed for Netflix? What is a strategic plan and decision-making process that needs to be put into place? For example, decisions that could be addressed is how to focus on diversifying employee demographics, how Netflix plans to expand its consumer base, how to choose the content they provide, etc.

Answer 1

Goals and mission

Netflix’s mission statement is “We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact.” The statement resounds what the company is best known for – providing outstanding and unparalleled video entertainment services. It also shows how the company balances the satisfaction of its customers with the financial needs of its other stakeholders.

Netflix’s vision statement is “Becoming the best global entertainment distribution service.” The vision statement is all about what the company wants to achieve. It stresses the desire to set a quality bar in the provision of on-demand video services. Specifically, this mission statement is a reflection of the leadership position Netflix aspires to attain and secure in the sectors.

The products, goods, or services provided by the chosen company

Netflix is a company that has taken entertainment to another level with its interactive, up-to-date, and user-friendly platform. The diversity characterizing its services has made it the sought-after video provider not only in the U.S but also beyond the borders of its mother nation. In fact, looking at the quality and customer satisfaction, good is an understatement for what Netflix has achieved – its work is simply a phenomenon. For over 20 years, Netflix has engraved its name as a top brand with incontestable quality, thanks to its mission and vision statements that emphasize its undivided attention to give the best wherever it operates. The vision statement of a company donates the picture of where the management wants the company to be in over a specific period of time in terms of success. Based on this, Netflix’s vision statement targets to be the model for the rest of on-demand video service providers. It is an ambition that is supported by its mission statement.

A description of the customer base of the company

In the first quarter of 2020, Netflix had over 182 million paying streaming subscribers worldwide. Of these subscribers, 69.9 million were from the United States. While the popularity of Netflix's streaming service has been increasing, the company's DVD section has declined. In 2018, there were 2.15 million subscribers to Netflix's DVD rental service in the United States, a drop from 11.17 million in 2011.

An overview of the markets served, including their current market share

From relatively humble beginnings as a DVD-by-mail service, Netflix has grown into one of the most influential media streaming services in the world. The company was one of the first to see the potential of streaming technology and began to transition to a subscription video-on-demand model in 2007. Since this transition, annual revenue has grown from 1.36 billion to around 15.8 billion in just ten years. The number of Netflix subscribers has followed a similar trend, growing from less than 22 million in 2011 to nearly 150 million in 2019. The service is becoming so popular that an estimated 37 percent of the world’s internet users use Netflix.

Identification of the company’s major competitors

While Netflix (NFLX) continues to be a market leader in the streaming space, it’s facing competition from Hulu, Amazon Prime (AMZN), the Walt Disney Company (DIS), YouTube (GOOGL), Apple TV, and WarnerMedia (T). Or else, There are several different competitors that threaten to chip away at market share from Netflix, including Amazon, Hulu, the upcoming streaming service from Walt Disney, as well as some of the cable channels' subscription services.

A description of the organizational structure (including overall responsibilities of the board of directors)

Netflix Inc.’s organizational structure is hierarchical but with modifications that account for business flexibility and responsiveness to global market changes. Through this corporate structure, the company is able to continually evolve to offer original entertainment content and on-demand media streaming service that attract target customers around the world.

A breakdown of the company’s employee demographics

The statistic presents information on the distribution of Netflix employees as of the third quarter of 2019, broken down by ethnicity. The data reveals that 24 percent of Netflix's employees as of the third quarter of 2019 were Asian, and seven percent were Hispanic.

Based on researching the following info, What decisions need to be addressed for Netflix? What is a strategic plan and decision-making process that needs to be put into place? For example, decisions that could be addressed is how to focus on diversifying employee demographics, how Netflix plans to expand its consumer base, how to choose the content they provide, etc.

Netflix is not the same start-up that disrupted Blockbuster almost two decades ago. It has transformed into a market-leading streaming service and has remained nimble and effective throughout, making it an excellent example of strategic agility. Netflix has consistently worked towards its strategic goals, while also adjusting in order to meet market trends and consumers’ needs. Today, Netflix has more than 120 million subscribers, and is quickly approaching a $150bn market cap. The company’s values include the expectation that employees will “keep [Netflix] nimble by minimising complexity and finding time to simplify”. By trusting employees in this way, Netflix benefits from a strategic agility that extends throughout the company’s structure.