Student Name: Patel Kevalkumar Pankajkumar

Student Id: CIM 7626 Words: 2223

Canterbury Institute of Management (CIM)

MBIS401-Information Systems and Strategy Assessment
AT1- Individual Case Study Analysis Report
A Case Study on Netflix’s Marketing Strategies and Tactics
https://www.themarcomavenue.com/blog/a-case-study-on-netflixs-marketing-strategies-
tactics

Student Name: Patel Kevalkmar Pankajkumar

Student I’d: CIM 7626

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

Executive Summary:
Netflix was one of the first companies to give streaming services. It works on a

membership plan and has over 125 million paid users worldwide. The company's

success comes from its decentralised organisational structure, which encourages

flexibility and new ideas, and its culture, which values imagination, freedom, and

responsibility. Netflix uses cutting-edge technologies like AI, Cloud Computing, and Big

Data Analytics to improve user experiences, run its business more efficiently, and stay

ahead of its rivals. The study finds problems with how the organisation handles data,

how it can grow, and how well it works. Netflix fixes these problems by using innovative

technologies.

Additionally, Netflix's flat organisational structure makes it easier for people from

different departments to work together, and the company's meritocratic culture keeps

politics to a minimum and pushes workers to be involved in decision-making. Netflix

develops new ideas because it works in a competitive market where customer

experience and personalised material are significant. Netflix offers smooth viewing,

personalised suggestions, and quick customer service worldwide thanks to a strong

value chain and advanced information systems.

In conclusion, Netflix's story shows how important it is for businesses to be flexible,

know how to use technology well, and put the needs of their customers first when

dealing with the complicated world of digital entertainment. Netflix is still leading the way

in shaping the next phase of streaming and changing the way the entertainment

business works by being open to new ideas and planning.

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

Table of Contents
Executive Summary:........................................................................................................ 2
Introduction:..................................................................................................................... 4
Netflix organizational issues related to their current information system:.........................4
To address organizational issues.....................................................................................4
The application of a range of technologies can help:.......................................................4
Netflix's Business Model:................................................................................................. 5
Organizational Structure:................................................................................................. 5
Politics:.............................................................................................................................5
Culture:.............................................................................................................................5
Environment:.................................................................................................................... 6
Netflix Primary activities:..................................................................................................6
Supporting activities:........................................................................................................6
Netflix current information systems:.................................................................................7
Impact of organisational structure, politics, culture, and environment:.............................7
Value Chain Analysis of Netflix:........................................................................................9
Inbound Logistics:.........................................................................................................9
Operations:................................................................................................................... 9
Outbound Logistics:...................................................................................................... 9
Marketing and Sales:....................................................................................................9
Service:.........................................................................................................................9
How Information Systems Add Value to Netflix's Value Chain:.......................................10
Porter's Five Forces Analysis:........................................................................................10
Netflix's Competitive Advantages:..................................................................................11
Weaknesses Compared to Competitors:........................................................................11
Operational Excellence Achievements:..........................................................................12
Areas for Improvement:..................................................................................................12
Recommendations:........................................................................................................ 13
Conclusion:.................................................................................................................... 13
References:....................................................................................................................14

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

Introduction:

Netflix is a streaming service that you pay for, and it has many TV shows, films, videos,

and unique material in many languages and genres. Reed Hastings and Marc Randolph

started it in California, USA 1997. The report discusses Netflix's organisational structure,

attitude, and competition landscape. The study stresses how vital creativity and

practical success are in streaming. It talks about the role of data systems in creating

value, the problems that might come up when implementing new systems, and some

ways that Netflix can keep its competitive edge through content, technological

advances, and strategies for maintaining interested subscribers.

Netflix organizational issues related to their current information system:

Netflix has many organisational problems with how its information system is set up now.

The company relies on data analytics to make personalised content suggestions, which

makes data management and personalisation hard. To keep the quality of advice high

and users happy, it's essential to keep data correct, private, and secure while handling

vast amounts of user data. Second, speed and flexibility are critical when the number of

users and material library is increasing. Maintaining smooth speed, minimising

downtime, and using resources are all important for giving users a good experience

(Global, 2023).

To address organizational issues

The application of a range of technologies can help:

Netflix is using a wide range of cutting-edge technologies smartly to deal with problems

within the company. By using Big Data Analytics and AI, the company improves its data

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Student Id: CIM 7626 Words: 2223

management, which lets it make more accurate content suggestions and predict how

users will behave, leading to better personalisation. Cloud computing is critical because

it allows Netflix to change the size of its infrastructure on the fly. This guarantees high

uptime, scalability, and speed while saving money and giving managers more freedom

to handle vast amounts of data and live content (Mier & Kohli, 2021).

Netflix's Business Model:

Netflix's primary way of making money is through subscriptions. Users can access

Netflix's vast collection of TV shows, films, and specials for a monthly fee. Netflix makes

about $15 billion annually from its more than 125 million paid users in 190 countries.

The site has also formed agreements with movie directors, artists, writers, and

animators to get material so its users can choose from various options (Global, 2022).

Organizational Structure:

Netflix has a decentralised organisational structure, which allows it to adapt quickly to

changes in the market. The company values creativity and independence, allowing

teams to make choices within their areas of responsibility. This layout encourages

imagination and makes it easy to add new features and materials quickly (Jaworski,

2021).

Politics:

Netflix works in a business setting that values equality and makes facts-based

decisions. Through open lines of contact and a focus on results, political factors within

the organisation are kept to a minimum. The company supports open communication

and comments so workers can say what they think and help make decisions.

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Student Id: CIM 7626 Words: 2223

Culture:

Netflix encourages people to be creative, accessible, and responsible. When the

company hires people, it looks for people who share its beliefs and pushes workers to

take responsibility for their work. This attitude of liberty gives workers the freedom to try

new things and develop new ideas, but they are still responsible for getting things done.

(Global, 2023).

Environment:

Netflix works in the streaming business, which is constantly changing and competitive.

The company keeps an eye on market trends and customer tastes so it can change its

plans as needed. Google and Netflix use advanced algorithms and technology to stay

ahead of rivals. They focus on the customer experience and personalising material.

Netflix Primary activities:

Content Acquisition and Development: Netflix spends much money getting licences

for current material and making its shows. To do this, they have to talk to studios,

production companies, and content makers about getting a library of films, TV shows,

and videos that are varied and interesting (Song, 2021).

Technology and Platform Maintenance: Netflix keeps investing money into improving

and supporting its streaming platform for various devices and operating systems. This

includes ensuring its system is secure, scalable, and reliable so that streaming works

smoothly.

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

Supporting activities:

Partnerships and Alliances: To reach more people and improve its services, Netflix

works with many companies, such as phone companies, video creators, and companies

that make devices (Global, 2022).

Research and Development: Netflix spends money on research and development to

improve its filtering systems, streaming technology, and tools for finding new material.

To do this, you must aspect at employer info, do a marketplace study, and crack out

novel technologies.

Legal and Regulatory Compliance: Netflix works in numerous nations and must

comply with many laws and rules about data protection, content licensing, and

censorship.

Netflix current information systems:

A complicated set of computer systems runs Netflix's tremendous video-on-demand

service and business worldwide. A firm delivery network is at the centre of its system. It

ensures people can watch without problems with any tool or location. The content

distribution network (CDN) is made to handle a lot of data quickly and efficiently. This is

how Netflix can properly send high-definition videos.

The CDN and a complete customer relationship administration system help Netflix

maintain a list of user accounts, friends, and interests. Users can get personalized ideas

from this CRM system based on what they look at and how they use it (Floegel, 2020).

Impact of organisational structure, politics, culture, and environment:

On Implementation to an innovative system

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

Organizational Structure:

People know Netflix for its flat organisational structure, which encourages

independence, adaptability, and new ideas. Not having tight orders makes it easier to

make decisions quickly and encourages people to try new things. If Netflix wanted to

create a new system, its open structure would make it easier because it would allow

people from different departments to work together and encourage everyone to share

their ideas, no matter their role in the company (Global, 2022).

Politics:

Netflix is a company that puts work ahead of politics. It tells workers to concentrate on

completing things instead of playing around with paperwork. A new system might be

easier to implement if no standard corporate politics are involved. Workers are more

likely to accept change if they think it will help the company succeed rather than serve

their personal goals.

Culture:

Freedom and duty are essential to Netflix's society. It encourages people to be creative,

take risks, and keep getting better. This attitude works well in creating an innovative

system because it rewards workers for questioning the status quo and pushes them to

try new things (Global, 2023).

Environment:

The digital entertainment business is fast-paced and competitive, as technology and

buyer tastes constantly change. To stay ahead of the competition and meet the

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 Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

changing needs of its customers, Netflix needs to come up with new ideas all the time.

Because of its many competitors, Netflix may need to keep developing new ideas and

using the latest technologies.

Value Chain Analysis of Netflix:

Inbound Logistics:

 To get content licences, Netflix works with companies, content production houses, and

movie production houses.

 Netflix chooses and creates its content and buys licences for other people's content to

add to its library (Bell, Ondracek, Saeed, & Bertsch, 2021).

Operations:

 Information tools are essential for Netflix's video platform to work well.

 Information systems make it easier to manage user accounts, make suggestions, and

add personalisation options, improving all users' experience.

Outbound Logistics:

 Information systems handle getting material to people worldwide, ensuring that live

experiences are smooth.

 Information systems are essential for handling customer questions, comments, and

problems, which helps outgoing operations work well.

Marketing and Sales:

 Information systems look at information about users to make material suggestions that

are more relevant to them. This helps with targeted marketing.

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Student Id: CIM 7626 Words: 2223

 Information systems help digital marketing efforts run on several platforms, increasing

their impact and effectiveness (Global, 2022).

Service:

 Information systems use algorithms and personalised suggestions to help users find

new material.

 Troubleshooting and technical help services are made more accessible by information

systems, which means that users can watch without interruption.

How Information Systems Add Value to Netflix's Value Chain:

Netflix uses information systems throughout its value chain to make things run more

smoothly, make user experiences more personalised, reach more people worldwide,

make decisions based on data, and encourage constant innovation. These systems

handle many tasks related to buying content, managing streaming technology, and

helping customers. This makes operations run more smoothly and requires less work to

be done by hand. By looking at user data, Netflix's information systems make

personalised suggestions. This makes users more interested and satisfied, which gives

Netflix an edge in the streaming business (LISA BROWN, 2023).

Porter's Five Forces Analysis:

Threat of New Entrants:

Netflix has built a strong brand image and invested much money into making its shows

and films. It's hard for new companies to start because they need much money to build

a vast material library and develop streaming technology.

Bargaining Power of Suppliers:

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Student Id: CIM 7626 Words: 2223

Netflix licences material from many studios and production companies, but as it invests

more in unique content, it depends less on outside sources. But big companies still

have much negotiating power, especially in popular games (Bobmanuel, 2022).

Bargaining Power of Buyers:

Netflix has a lot of subscribers around the world, which gives it a lot of power over

buyers. The platform has a lot of different kinds of material, including originals that can

only be found on that platform.

Threat of Substitutes:

There are other streaming services, but Netflix's massive library of films, TV shows, and

personalised recommendation system make it stand out.

Competitive Rivalry:

Many companies are competing for market share in the online video business. Amazon

Prime Video, Disney+, HBO Max, and Hulu are some competitors that offer similar

services, unique materials, and low prices (LISA BROWN, 2023).

Netflix's Competitive Advantages:

Netflix has a vast selection of TV shows, films, videos, and original material to suit the

tastes of all kinds of people. It stands out from rivals because it keeps putting money

into original shows. Netflix's complex system also looks at user tastes and watches past

to make personalised suggestions, which improves the user journey and keeps users

coming back. Netflix has a significant edge over other companies because it was the

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

first to offer streaming services in over 190 countries. It has also built a solid worldwide

reputation (Putri & Paksi, 2021).

Weaknesses Compared to Competitors:

One significant weakness is that it relies on material licensing, even though it spends

much money on creative shows. Netflix has an extensive library of original shows and

films but still draws a lot on licensed shows and movies from other companies. Because

of this, the platform is vulnerable to changes in licensing fees and the availability of

material, which could affect what it offers and how users experience it.

Operational Excellence Achievements:

Netflix has reached operating success through several vital programmes. First, its

smooth shift from a DVD rental service to a platform for streaming shows how flexible

and ahead of its time it is. This has helped it reach people worldwide and become the

leader in the streaming business. Netflix's success is mainly due to its advanced

recommendation system, which looks at what users like and suggests material that fits

those tastes. This improves the user experience and keeps them interested (Pepsi &

Mission).

Areas for Improvement:

Global Expansion Challenges: Even though Netflix is available worldwide, the rules

and tastes of each market still need to change. To spread practical achievement, you

need to contract with conversion problems like linguistic picks and solid licensing.

Competition and Market Saturation: With more streaming facilities, Netflix

requirements to keep impending up with novel ideas to stay in advance of the rivalry.

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Student Id: CIM 7626 Words: 2223

This means spending money on exclusive material, improving its suggestion system,

and looking for new ways to make money.

Technological Infrastructure: Netflix's streaming technology base is a big part of its

success. To keep its operating success, Netflix has to keep spending money to improve

video quality, speed up the network, and fix technical problems so that viewers have a

smooth experience (Global, 2023).

Recommendations:

 Netflix should emphasis on vital ideas to keep business quality, gain a modest edge,

and add worth to its value chain.

 To begin, keeping the money going into making original content and forming brilliant

relationships will help it build its library of content, improving the user experience and

keeping customers.

 Second, putting new technology first is essential for staying ahead of the competition in

the streaming market, which is changing quickly.

 Building communities, engaging content, and tools for user-generated content can also

help you get to know your users better and get them more involved with your business

(Steck et al., 2021).

Conclusion:

Finally, Netflix's organisational structure, culture, competitive environment, information

systems, value chain, and strategic placement give us helpful information about how the

company works and how it aims to stay at the top of the streaming industry. Netflix's

decentralised organisational structure, which encourages flexibility, new ideas, and

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

independence, is a big part of its success. Netflix's journey shows how important it is to

be flexible in running your business, knowledgeable about technology, and focused on

the customer when dealing with the complicated digital entertainment industry. Netflix is

still on track to change the future of streaming and the entertainment industry for years

to come through constant innovation and strategic planning.

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

References:
Bell, O. A., Ondracek, J., Saeed, M., & Bertsch, A. (2021). Netflix, Inc. in the Time of

Covid-19: A Case of Managing and Strategizing. Viewpoint-An International

Journal of Management and Technology, 11.

Bobmanuel, A. A. (2022). THE STRATEGIC ANALYSIS OF NETFLIX, INC.

Floegel, D. (2020). Labor, classification and productions of culture on Netflix. Journal of

Documentation, 77(1), 209-228.

Global. (2022). Netflix Value Chain Analysis. Retrieved from Business Strategy Insights:

https://www.bstrategyinsights.com/netflix-value-chain-analysis/

Global. (2023, 10 12). A Case Study on Netflix’s Marketing Strategies & Tactics. The
Marcom Avenue. Retrieved from https://www.themarcomavenue.com/blog/a-case-study-
on-netflixs-marketing-strategies-tactics
Jaworski, B. J. (2021). Netflix: Reinvention across multiple time periods. AMS Review,

11(1), 180-193.

Mier, J., & Kohli, A. K. (2021). Netflix: reinvention across multiple time periods,

reflections and directions for future research. AMS Review, 11, 194-205.

LISA BROWN. (2023, 12 06). Netflix Five Forces Analysis & Recommendations

(Porter’s Model). Panmore Institute. Retrieved from https://panmore.com/netflix-

five-forces-analysis-recommendations-porters-case-study

Pepsi, C.-C., & Mission, S. Coca-Cola vs Pepsi, Netflix vs Walt Disney, UPS vs FedEx–

A Comparative Analysis of World’s Admirable Companies.

Putri, A. R. F., & Paksi, A. K. (2021). The strategy of Netflix to dominate the

entertainment media market in Indonesia 2016-2021. Jurnal Ilmiah Dinamika

Sosial, 5(1), 110-134.

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Student Name: Patel Kevalkumar Pankajkumar
Student Id: CIM 7626 Words: 2223

Song, M. (2021). A comparative study on over-the-tops, netflix & Amazon prime video:

based on the success factors of innovation. International journal of advanced

smart convergence, 10(1), 62-74.

Steck, H., Baltrunas, L., Elahi, E., Liang, D., Raimond, Y., & Basilico, J. (2021). Deep

learning for recommender systems: A Netflix case study. AI Magazine, 42(3), 7-

18.

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