Netflix's Business Level and Corporate Level Strategies

Week 8 Business-Level and Corporate-Level Strategies
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Strayer University
BUS499 Business Administration Capstone
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Netflix is one of the giant streaming companies in the world which offers video entertainment on a subscription basis. The company is in entertainment and media industry, and it stiffly competes with video rental stores, traditional cable television, and different online streaming providers such as Hulu, Disney+, and Amazon Prime Video. This paper will evaluate Netflix's business-level and corporate-level strategies implemented to overcome competition in the market and examine their effectiveness. Moreover, the report will analyze Netflix's competitive environment and long-term success. Lastly, it will assess whether the company or its industry competitors vary in fast-cycle and slow-cycle markets.
Business-Level Strategies
The entertainment and media industry in which Netflix operates experiences stiff competition, especially the Streaming-Video-On Demand (SVOD) sector. Since its incorporation in 1997, the company has grown immensely to over 190 countries. The company employs focused differentiation as its business-level strategy, which, according to (Hitt et al., 2019), enables the corporation to remain exceptional in a competitive market and apply premium charges for its services. The basic fundamental competency of the company relies on its capacity to offer and distribute original but excellent-quality content. Netflix focuses more on producing its unique programming, thus building a loyal customer base and attracting new subscriptions. Also, Netflix analyzes customer data to ensure its production is personalized and thus enhances user experience (Netflix Inc., 2022). The company's data-driven approach has substantially enabled it to formulate its recommendations to specific users, thus improving customer retention.
The pricing model of Netflix further supports its differentiation strategy. The company offers several subscription tiers with varying features and access levels. This difference enables Netflix subscribers to choose the best plan for their budget and needs while allowing the company to apply premium charges for its content. The business-level-strategy of focusing on differentiation has proved successful in the SVOD sector (Gregory, 2021). Over the years, Netflix has differentiated itself from competitors by applying premium service charges and building a loyal customer base.
Corporate-Level Strategies
As mentioned above, Netflix is among the giant streaming providers in the entertainment industry. Netflix focuses on diversification as its primary corporate-level strategy, particularly related diversification in its provision and services expansion. Netflix has grown from the original DVD rental business to a dominant streaming provider in the media and entertainment industry by producing original content, films, documentaries, and licensed content. This diversification corporate-level strategy that Netflix employs entails expanding its content and services in diversifying its revenue income (Hitt et al., 2019).
Netflix has incorporated related diversification, an effective strategy due to its ability to create original content, enabling the company to earn significant critical acclaim and awards. Substantially, Hitt et al. (2019) argue that the strategy allows the company to focus on developing different content that makes it competitive in the streaming market and retains customers. The company puts enormous amounts of money into creating new content and focuses on quality creation which appeals to diverse subscribers, which is its success (Netflix Inc., 2022). The company's capacity to produce original content improves its competitive advantage over other media and entertainment industry competitors.
Moreover, Netflix has sustained a loyal subscription base and grown its revenues through its related diversification strategy. The company has embraced diversification in its provision, offering a range of content like Tv shows, docuseries, and films catering to diverse audiences. This diversification has placed the company atop attracting and retaining customers with varying viewing preferences (Gregory, 2021). Generally, I find Netflix's related diversification strategy the most suitable for its long-term success. The company differentiates itself from competitors by extending its production and investing heavily in original content to sustain its competitive advantage (Netflix Inc., 2022). Also, its capacity to diversify revenue incomes by incorporating a related diversification strategy has increased its revenue and remained a market giant in entertainment and media industry.
Competitive Environment Analysis
The video streaming industry is highly competitive, and Netflix faces intense ...