Question

In: Operations Management

How would you recommend that Netflix overcome its challenges in the international market?

How would you recommend that Netflix overcome its challenges in the international market?

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Expert Solution

Answer

The company needs to invest more in making content compatible with lower web bandwidths. Apparently there is lower internet penetration on the foreign market particularly in Asia , Africa and South America, combined with the current connectivity being annoyingly weak. This means that online videos and tv shows are very frustrating in these parts of the world because even Netflix takes a lot of bandwidth. This therefore limits the number of consumers in these countries where only a given section of the population can access the service.

Netflix can overcome this by investing heavily in local markets and providing higher video experience over networks with limited bandwidths to draw more subscribers. Second, Netflix 's success is still felt in the U.S. owing to local content demand. Nevertheless, to have a mantle and proper industry supremacy on the foreign market , it is important that Netflix carries with it more local content specific to certain countries to create a more global audience. Therefore, a large user base may be used to cover the expenses ultimately caused by this project. In other words, the local library has to be diversified in order to harness the variety of the context of the countries it wishes to grow. A blanket approach that alludes to a similar content being put in place across all countries will only lead to many dissatisfied customers.

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