Category: Netflix

I believe that Netflix company has a great understanding of its target market. Netflix is well-known for its streaming service that targets customers all around the world. Brand development and customer relationship management are the well-developed strategies used by the company to promote its service. It applies innovative technologies and drives data to analyze its audience. Moreover, by considering customers’ needs, streaming services can be accessed via phones, TVs, and other devices. A combination of different tools, such as web forms, email marketing, social media engagement, and landing pages, allows the company to attract new customers on a daily basis (Haughey, 2021).

Furthermore, films made by the brand demonstrate social trends by including various social groups, such as LBGTQ+, disabled people, and minority representation. Such a customer-oriented approach makes Netflix one of the most successful companies.

However, there are two aspects, particularly more content for older people and notifications, that can be improved. Netflix targets females and males aged between 17 to 60, but I cannot find content for my grandparents on the platform. The service will attract more customers and increase its profit if older people can watch it too. Another aspect is its notifications about new episodes or new shows that are annoying and make some customers irritated. Due to it, I even deleted the Netflix app from my phone. As such, asking customers about being notified or not would be a great improvement.

As for my business idea, which is a full-service wedding coordinator, my target market is millennial couples, mainly aged between 21 to 45. The target market is chosen because mostly at this range people get married and plan their wedding. Similarly, as it was written in the post, Apple does on its target analysis, focusing on such range allows analyzing preferences of millennials and examining recent trends. I liked the post about Apple company where multi-segment positioning was mentioned. I also would like to implement such a strategy in my business, allowing couples with various financial statuses have weddings of their dreams. Moreover, I agree that Apple should tackle the issue with junk mail, as it makes the customer experience worse.

Reference

Haughey, C. J. (2021). How to master modern marketing strategy like Netflix. EngageBay – All-in-One Marketing, Sales, and Service Software for Growing Businesses. Web.

Introduction

It is well-known that Netflix, Inc. is a rather successful American subscription streaming service. Its present and future customers are ordinary people, mostly millennials, and its stakeholders are content creators, investors, subscribers, and competitors. Like every business company, Netflix is influenced by several environmental forces. One of them, the competitive force, is most likely to influence Netflix’s actions and future performance. According to researchers, the competitiveness of Netflix is decreasing because more and more clients prefer other streaming services, including Amazon Prime Video, AppleTV+, Disney+, Paramount+, and HBO Max (Lee, 2021). As noticed by Lee (2021), “Netflix’s share of total demand was slightly above 50 percent for the first three months of the year, compared with 54 percent a year ago and 65 percent in the first quarter of 2019” (para. 4). Therefore, it is possible to say that the following actions and strategies chosen by Netflix will be based on the competitive forces.

Analysis of the Competitive Environment

As mentioned above, competition increases and Netflix has to offer its current and potential subscribers more interesting and exclusive shows. However, the company itself does not consider its competitors a threat and mentions no significant change in the competitive environment (Lee, 2021). Nevertheless, people now have more choices between streaming services, and since there was an increase in Netflix’s prices, not everyone can afford to pay for the subscription and may want to choose cheaper options offered by competitors.

Factors of Change

Economic

To provide its customers with many original shows, Netflix spends a lot of money and has to increase subscription payments. At the same time, its revenue is not always high since many countries in which it operates are prone to exchange rate fluctuations, which directly affects Netflix’s profit. Finally, recent COVID-19 restrictions and effects have caused many people to lose their jobs or have their earnings decreased. Therefore, many people choose to watch movies and show on illegal but free media platforms.

Technological

Netflix is known for its high-quality video and content and the fact that its subscribers can watch shows and save their data while also having their content personalized. The unique system used by this media company to suppress video allows them to remain high-quality and much more attractive to people (Lee, 2021). Additionally, it is a great advantage that even the cheapest subscription option provides people with high-quality content.

Government

It is essential to notice that Netflix is not available worldwide as it is forbidden by the U.S. government for any American company to conduct business in some countries. Additionally, in several states, there are specific restrictions regarding media content, and many shows available on Netflix in the U.S. cannot be accessed in other countries. For example, in Turkey, there are higher rates of discrimination against the representatives of LGBT, and those shows that contain scenes related to this topic are banned there.

Political and Social Forces

Finally, Netflix is also influenced by political and social forces. As mentioned above, political disagreements between the U.S. and other countries prevent the media provider from operating there. As for society, it is possible to say that people love Netflix and still prefer it over other streaming services, especially in America. What is more, employees also enjoy working on Netflix as they are treated with respect and receive many benefits.

Conclusion

Nowadays, it is more comfortable for people all over the world to enjoy a new show at home instead of going to the cinema. This international trend allows streaming companies to gain an advantage and has more customers. At the same time, in the U.S., most of the population is now fully vaccinated and can enjoy life outside their homes, which affects the number of Netflix subscribers. Finally, intercultural differences either make Netflix produce diverse content aimed at various nations or prevent it from broadcasting in some countries due to their value systems.

Reference

Lee, E. (2021). Netflix’s dominance starts to slow as rivals gain. The New York Times. Web.

Brief company description

Netflix is a media services provider, currently offering a library of their own content as well as licensed content for a subscription fee. Netflix was founded originally as a DVD rental service, and has since transitioned into a digital subscription platform. In the recent years, Netflix has started to put more resources into their own content (originals), with firms predicting that Netflix spends nearly 18 billion currently on content, and 85% of that going to the production of originals.

During the COVID-19 pandemic, Netflix saw their subscriber count increase by nearly 26 million, showing the effect of consumers having to stay at home and look for digital forms of entertainment. Their stock price increased by nearly 60% from the start of the year, but is starting to slow down now.

Key Issue

As mentioned above, the pandemic was a great growth vehicle for Netflix. However, that growth seems to be slowing down. While reporting third quarter earnings, Netflix mentioned that they added 2.2 million subscribers in that quarter, which is lower than any other point across the last 4 years. The key issue here is whether Netflix can sustain or keep growth at a reasonably close level to what it was during the pandemic.

Recommendation(s)

1. Establish strategic partnership with Dish Network to have exclusive rights to Sling TV subscribers, contents in exchange, and share of revenue for $6 billion in 2020. The shared revenue from Sling TV would estimate to be around 5% additional revenue for Netflix;
2. Diversify the existing range of products by partnering with mobile infrastructures and introducing Netflix’s own unique shows and changing the production process toward the development of original content as the company’s main asset;
   • When developing unique content, placing the emphasis on semi-serialised shows and especially sport-related shows;
   • Integrating Netflix applications within a device so that customers could have an immediate access to the variety of services that the company has to offer;
   • First option: partnership with Sling TV (with the focus on sport shows and the opportunity to expand the current range of audiences);
   • Second option: reconsidering the current range of content types and focus on developing unique, company-produced TV shows;
   • Deviating from the serialised content in favour of semi-serialised in order to gain the attention of new audiences faster.

Market Attractiveness

The current attractiveness of the target market in which Netflix is trying to keep its position of a leader is very high since the company has been producing its services for the global audience. Offering its streaming options virtually worldwide, Netflix has managed to encompass the largest range of customers possible, at the same time catering to the culture-specific demands of its customers. Therefore, the overall attractiveness of the global market is extraordinarily high for Netflix.

Competitive Advantage

Although Netflix’s competitive advantage remains very high, the company is facing very tight competition, particularly, from Hulu and Amazon Prime. In addition, the examples of Hulu and similar streaming services indicate that Netflix should expand its competitive advantage by partnering with other companies in an effort to keep its content consistently good and introduce new shows regularly. Therefore, collaborating with a live TV service would allow propel Netflix with its renewed competitive advantage to the top of the food chain.

NPV

Brainstorming

• Begin to create more content for an international audience now that the pandemic has allowed Netflix to reach a wider audience.
• Club additional offers and restructure its pricing. Netflix’s approach toward setting prices has been quite sensible, yet the absence of clear differentiation makes Netflix’s framework rather flawed and unattractive to customers. Therefore, greater price differentiation and the introduction of new plans with discount options should be deemed as necessary.
• Netflix can have a subsidiary that follows the model of Youtube offering free and premium services (which would allow shorter videos to be uploaded as well)
• Acquire MGM Studios, already a potential target of theirs with rights to the James Bond film series and a strong television program base;
• Creating a more viable risk management strategy to ensure that Netflix is not affected by any other issues occurring in the global market, including impediments associated with COVID-19 and the relevant financial issues.

Work Cited

Yun, Jinhyo Joseph, et al. “Benefits and Costs of Closed Innovation Strategy: Analysis of Samsung’s Galaxy Note 7 Explosion and Withdrawal Scandal.” Journal of Open Innovation: Technology, Market, and Complexity, vol. 4, no. 3, 2018, p. 20.

The modern world can be characterized by a continuous contest between various enterprises, including streaming services. Netflix is a leader in the subscription video-on-demand industry and has been rivaling such major brands as Amazon Prime Video, Disney+, and Hulu (Kweon & Kweon, 2021). Consequently, one can hypothesize that Netflix’s primary competitive advantage lies in being different from others. Netflix faces substantial opponents and challenges but remains one of the primary players in providing access to movies and TV shows.

Netflix has a long history of being a streaming service and has managed to determine ways of outperforming others. The corporation pioneered the market in 2007 and has gathered millions of users (Kweon & Kweon, 2021; Varadarajan, 2020). However, Netflix has fronted certain obstacles that may decrease its popularity. In particular, research suggests that Netflix recently lost subscribers and even resolved its fees (Kweon & Kweon, 2021). Such a decision is doubted to benefit the firm because Netflix’s affordability has always been questioned. Compared to its rivals, Netflix does not have the lowest prices (Kweon & Kweon, 2021). Nonetheless, Netflix’s competitive differentiation advantage helps the company keep its leading position (Kweon & Kweon, 2021; Varadarajan, 2020). Netflix surpasses other businesses due to constantly developing unique content, which is not discerned based on subscription status, and being ad-free, which is a vital part of the brand’s identity (Kweon & Kweon, 2021). Since the corporation does not depend on using commercials, utilizing Netflix is distinguishable from interacting with other streaming services and traditional TV channels. Throughout its existence, Netflix has been working on improving its visual products.

Despite encountering downfalls, Netflix appears to know how to stand out among other partakers in the industry. The brand’s main strength is being unlike its rivals in prioritizing the users’ access to unique content. Netflix allows people to watch TV shows and movies regardless of subscription level and without commercial interruptions. The corporation greatly values its individuality which seems to be the reason for Netflix being a leader and the longest player in the market.

References

Kweon, H. J., & Kweon, S. H. (2021). Pricing strategy within the US streaming services market: A focus on Netflix’s price plans.International Journal of Contents, 17(2), 1-8. Web.

Varadarajan, R. (2020). Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, 89-97. Web.

Netflix Inc. is among the world’s leading entertainment companies and gives access to TV series, mobile games, documentaries as well as feature films across a wide range of languages and genres. Netflix was started in 1997 as an online movie rental business but was located only in the United States. The Netflix Company has, however, grown to accommodate approximately 220 million paid memberships spread across more than 190 countries (“About Netflix,” 2022). The company’s growth strategy took the direction of exponential globalization which is an expansion cycle aimed at increasing speed to an increased number of countries and customers. Its members can enjoy watching as much as they would desire anywhere or at any time on any screen connected to the internet.

The company takes position 8 because it leads the streaming industry because it dominates the market share, has the largest number of customers. The digital strategy is based on utilizing technology to improve a company’s performance. The company started with DVD using mail service and has advanced to be among the top worldwide companies offering video streaming services. This is because it was among the first companies to recognize the possibility of video streaming technology, and in 2007, it started to shift or move to a video-on-demand subscription model. Moreover, in only 12 years, the company’s revenue has grown to 25 billion, which was previously at 1.36 billion. Additionally, the company’s number of subscribers increased substantially in a similar trend to its revenue which increased from 22 million in 2011 and now stands at 214 million in 2021 (“Topic: Netflix,” 2022). However, the company has had a difficult journey in realizing the success it has today.

The company was able to revolutionize how people could access and engage the content they desired without the company having to physically deliver them as DVDs, as well as becoming a universal entertainment provider. This meant that the company had to employ a digital business strategy in innovation to ensure it became the most reliable, the easiest, and fastest compared to its competitors (Senthilkumar et al., 2017). As a result, the company’s streaming service was born. This meant that a lot of work had to be put into programming languages, including Java, and Python. Moreover, Netflix ensured its customers could get their services easily during the pandemic using binge-watching.

The company had to invest in big data and analytics that ensured they could get the customers’ right preferences even in their local regions. This meant that its customers could get their shows in the local languages using subtitles and dubbing as a tools to translate contents into foreign languages, which meant adding more languages. This was to make sure that their content would capture local as well as universal audiences and that development of direct and digital content distribution could be achieved (Aguiar & Waldfogel, 2017). This helped Netflix reap greatly from local content investments.

Netflix invested in personalizing algorithms that led to the realization of a universal content library and diversifying its device range, payment partnerships, and operations. This follows the fact that some regions in the globe use mobile as the main way to access the internet, mainly in nations with developing economies (Onyusheva & Baker, 2021). Moreover, the company also made an effort to create a website and movie personalization, which informed their members to consider the website a vital part of the Netflix accounts (Alumni, 2018). As a result, the digitalization of the company’s market made sure that it continued to flourish as the number of customers increased substantially (Ustundag & Cevikcan, 2018). This is because the technology was able to offer better service delivery as well as improve customer happiness and satisfaction.

Additionally, the company decided to improve its mobile experience by ensuring the sign-ups, credentials, and authentication, ensuring cellular networks had streamlining efficiency as well as user interface were included. This secured the members’ accounts, thereby increasing trust in the company, which made it grow even more. Additionally, the company built associations with TV and mobile operators, device makers as well as internet service providers. The company was able to link with cable and cell phone operators to ensure that its content is available on the devices as part of their video-on-demand existing offerings. A good example is Vodafone, which included a button reserved on its remote controls for Netflix when it launched a TV service for its clients in Ireland (Onyusheva & Baker, 2021). The company was also able to acquire partnerships with Telefonica with KDDI in Japan as well as Telefonica in Latin America and Spain.

Additionally, the company decided to improve its mobile experience by ensuring the sign-ups, credentials, and authentication, ensuring cellular networks had streamlining efficiency as well as user interface were included. This secured the members’ accounts, thereby increasing trust in the company, which made it grow even more. Additionally, the company built associations with TV and mobile operators, device makers as well as internet service providers. The company was able to link with cable and cell phone operators to ensure that its content is available on the devices as part of their video-on-demand existing offerings. A good example is Vodafone, which included a button reserved on its remote controls for Netflix when it launched a TV service for its clients in Ireland (Onyusheva & Baker, 2021). The company was also able to acquire partnerships with Telefonica with KDDI in Japan as well as Telefonica in Latin America and Spain.

Netflix is also able to market its services by connecting with its customers or clients through social media. Social media websites or platforms provide a means to create audience engagement as well as the chance to introduce a new series or content to a separate number of followers that are registered (Hacioglu, 2020). Social media is an important tool in presenting the services offered, especially for a company such as Netflix, since a commercial video uploaded on a social media platform can go viral and attain thousands or millions of possible viewers, which promotes the company’s services (Gomez & Quevedo, 2018). One of the social media platforms that Netflix uses is Twitter which helps create the expectation for live events or even storylines posted before, during, and after series have been released. An example how of social media was used to successfully promote a particular program is the use of a Twitter campaign using the hashtag #AskOrange which was launched 8 days before the release of the opening of a new season of the Orange is the new black series.

Additionally, Netflix uses publications like The New York Times as well as Wired, The Atlantic to place traditional advertisements. Moreover, social media has a promotional utility that enables companies like Netflix to boost their content awareness which can be achieved by encouraging their viewers to share, retweet, and like the uploaded content (Gomez & Quevedo, 2018). Additionally, social media offers an affective perspective that enables the measurement of audience engagement which can be done by getting followers into the conversations and then requesting them to tweet on specific topics.

Others include patent grants, Netflix’s digital products, trademarks, reputation, and social image of the company among members, which are all considered intangible resources (“About Netflix,” 2022). Netflix Inc. is very good at adapting, which has been shown by its capability to react and grow with changes in IT and attempts or makes an effort to simplify and promote digital content access. Moreover, the company is customer-oriented, which helps it hold its lead in the market share. In addition, the company has used its limitations to crate defining features that differentiate it from other platforms (Aguiar & Waldfogel, 2017). For example, the company has successfully transformed the challenge faced in promoting a series’ new season by offering them at one time rather than when they are paced over several months.

This is because its business structure incorporates a digital business strategy with the ability to use innovation to expand its market by using technology to advance and distribute its services. Additionally, the company can cope with emerging technology that helps satisfy the customers’ preferences.

References

About Netflix – Homepage. About Netflix. (2022). Web.

Aguiar, L., & Waldfogel, J. (2017). Netflix: Global hegemon or facilitator of frictionless digital trade?Journal of Cultural Economics, 42(3), 419-445. Web.

Alumni, G. (2018). The Origin of Netflix’s Success – Digital Innovation and Transformation. Digital Innovation and Transformation. Web.

Gomez, E., & Quevedo, J. (2018). Connecting with audiences in new markets: Netflix´s Twitter strategy in Spain. Journal of Media Business Studies, 15(2), 127-146. Web.

Hacioglu, U. (2020). Digital business strategies in blockchain ecosystems. Springer.

Onyusheva, I., & Baker, A. (2021). Netflix: A case study on international business strategy development. The Euraseans: Journal on Global Socio-Economic Dynamics, 6(31), 40-52. Web.

Senthilkumar, M., Aravinth, M., Gokulraj, G., & Iyyanar, M. (2017). A trend setting integrated digital marketing strategies for business promotions.SSRN Electronic Journal, 1-11. Web.

Topic: Netflix. Statista. (2022). Web.

Ustundag, A., & Cevikcan, E. (2018). Industry 4.0: Managing the Digital Transformation.

Introduction

Organizational culture and structure are integral because they affect performance. They are also strategic tools that can be used to differentiate between organizations (Özşahin & Yürür, 2018). When compared, Netflix and Viacom CBS’ culture and structure have similarities and differences (Kretschmer & Khashabi, 2020; Daidj, 2016). The first similarities in the products they provide to their clients globally. The two firms provide entertainment artifacts such as TV shows, movies, documentaries and many more. The ethical elements in the two cultures are the aspect of honesty, empathy, and inclusion. However, the difference comes in the values of the firms and the type of organizational structure used. Netflix uses a unitary or functional organizational structure, while Viacom CBS uses a vertical structure.

Similarities and Differences of Netflix and Viacom CBS

Netflix and Viacom CBS are some of the leading streaming service providers with a large customer base across the globe. The two organizations have similarities and differences in their organizational culture. For instance, they offer the same artifact to their customers across the globe (Netflix, 2021; Viacom CBS 2021). The firms provide a wide variety of TV shows, movies, documentaries, and other entertainment services. Apart from the artifacts, the two firms share values such as innovation, integrity, and inclusivity. However, Netflix has other values such as judgment, passion, selflessness, impact, and communication, while additional values for Viacom CBS include determination, collaboration, agility, and adaptability.

Although the two firms have different organizational structures, some elements are similar. Netflix has adopted a unitary organizational structure, while Viacom CBS uses a vertical structure (Kretschmer & Khashabi, 2020; Daidj, 2016). This difference is due to a need to achieve organizational objectives, desire for effective change management, and efficiency. In these structures, the organization shares some similarities, especially in the top leadership and the existence of functional groups. The top-most leader is a chief executive officer (CEO) in both organizational structures. Therefore, there are similarities and differences in the organizational culture and structure of Netflix and Viacom CBS.

Organizational culture

Artifacts

Organizational culture and structure are important because they influence performance. They are also strategic tools that play an integral role when comparing organizations. Netflix and Viacom CBS are companies that majors in delivering content to audiences across platforms globally. They provide streaming services to their customers in the market. Netflix’s prominent artifacts are TV shows, movies, anime, documentaries, and other internet-connected devices (Netflix, 2021). In addition, the company provides a platform for a variety of TV shows across the globe. Similarly, Viacom CBS is one of the most important and extensive television and film archives in the entertainment industry. Viacom CBS provides clients on five continents with comprehensive production, distribution, and advertising solutions, as well as innovative streaming technology and online video services (Viacom CBS, 2021). The two companies are known for providing streaming services to clients across the globe.

Values

Values are important aspects of organizational culture because it provides a guiding architecture that guides performance and behavior. They act as the guiding principles for employees to perform their operations effectively. For example, Netflix’s key values include decision-making, communication, curiosity, courage, desire, selflessness, innovation, inclusivity, honesty, and impact (Netflix, 2021). On the other hand, the core values of Viacom CBS are optimism and determination, inclusivity and collaboration, and agility and adaptability. In addition, Viacom CBS is committed to cultivating a culture of optimism, bravery, honesty, and empathy (Viacom CBS, 2021). These principles are critical to the effective operation of the two organizations because they ensure that all stakeholders stay focused on the firm’s main goals.

Netflix and Viacom CBS share values such as courage and inclusion. The companies want their employees to speak without any fear. Even though it makes others uncomfortable, people are encouraged to speak their mind when it is in the firm’s best interests. Make difficult decisions without lingering over them, and take calculated chances even when there is a chance of failure. In addition, the two companies have worked hard to create an inclusive culture that encourages cooperation and inclusion. They employ people from various backgrounds and cultures; thus, it is critical to interact with people from different origins and cultures. The two companies are working towards fostering an inclusive workplace.

Core assumptions

Core assumptions are the values that employees in an organization take for granted to the point where they become assumptions. Netflix does not have core assumptions because the employee highly respects organizational values (Netflix, 2021). The employees at this organization understand and practice all the values set by the organization. However, things are different at ViacomCBS because there are some basic assumptions. For example, the employees do not respect the value of innovation even though it is listed as one of the values. This explains why ViacomCBS moved to increase innovation in 2018 (Viacom CBS, 2021). Thus, although Netflix has no core assumptions, ViacomCBS has core assumptions like innovation.

Ethical and Positive Elements

Netflix

The first ethical element in Netflix’s culture is the value of honesty. Netflix believes dishonesty and politics hurt performance and productivity (Netflix, 2021). Instead of being political, they claim that one ought to be recognized for transparency, condor, and authenticity. They are supposed to refrain from saying anything behind other people’s backs. It is not impolite to freely and honestly admit faults. In addition, the organization focuses on creating an environment where everyone is respected regardless of their social standing or personal differences.

The second ethical element in Netflix’s culture is the value of selflessness. This value is characterized as caring more about other people’s needs and desires than one’s own. Self-centeredness is not tolerated at Netflix, and people should not focus solely on personal accomplishments because it goes against the Netflix spirit (Netflix, 2021). People should prioritize what is great for Netflix over their interest. Keep an open mind and look for fresh ideas. Aside from that, set aside some time to assist people in the community. It is also critical for Netflix employees to openly and proactively exchange knowledge. Therefore, selflessness is an important ethical aspect that organizations should embrace.

The third ethical aspect is the value of judgment, which is important during decision-making. Netflix’s corporate culture places a high emphasis on how decisions are made within the company (Netflix, 2021). Even in the face of uncertainty, people are urged to make sound decisions. Rather than treating the symptoms of a problem, the emphasis should be on determining the root cause. Employees are encouraged to think strategically and state clearly what they intend to do and what they do not intend to do (Netflix, 2021). They should not base their conclusions solely on feeling rather than fact. Therefore, they should make long-term decisions rather than short-term ones.

The other important element is a culture of inclusivity, which involves embracing people from various backgrounds. Netflix has worked hard to create an inclusive culture that encourages cooperation and inclusion (Netflix, 2021). The company employs people from various backgrounds and cultures; thus, interacting with people from different origins and cultures is critical. When individuals consider a variety of viewpoints, they can make better selections. The employees at this organization are encouraged to overcome preconceptions rather than be kept captive. Also, at Netflix, marginalizing people is not an option, and everyone should ensure that no one around them is marginalized.

Viacom CBS

The first ethical value presented in the organization’s culture is honesty. Viacom CBS encourages a culture of openness because they symbolize an individual’s desire to express themselves, even if it is difficult or unpopular (Viacom CBS, 2021). Honesty is described as a willingness to listen and address issues before all evidence has been completely analyzed. It could also be understood as keeping their word, honoring promises, and delivering on time. The company is motivating its employees to behave with integrity at all times. The employees are expected to make honest decisions in and outside the workplace.

The second ethical aspect is inclusion, which involves embracing people from different cultures. Employees and their work at Viacom CBS are drawn together and driven ahead by a shared set of principles. These principles coexist alongside the greatest business activities and are influenced by the enthusiasm, innovation, and integrity that people around the world bring to work daily (Viacom CBS, 2021). In addition, the organization believes that diversity help in improving productivity and performance. As a result, everyone at Viacom CBS is encouraged to create a conducive environment for diversity. Therefore, inclusion is an important ethical concept that all organizations across the globe should embrace.

The Organizational Structure of Netflix and Viacom CBS

There are some similarities in the organizational structure of Netflix and Viacom CBS. Firstly, there is a hierarchy in their structure in both organizations, representing authority. The chief executive officer (CEO) of the company is at the top of the hierarchy. The organizations have a coordinated chain of command as a result of successful interaction with numerous stakeholders and staff members, as well as the use of technology in various business activities (Kretschmer & Khashabi, 2020; Daidj, 2016). Second, people in the two organizations are classified according to their services. The two firms’ three basic divisions are functional, regional, and marketing teams. CEO, content, communication, talent, finance, legal, and other departments are all part of the functional area.

Despite the similarities, there are some differences in the organizational structure of Netflix and ViacomCBS. Netflix Inc. has a unified organizational structure that includes a level for executive leadership and overall direction (Kretschmer & Khashabi, 2020). However, in comparison to many firms with divisional organizational structures, such as ViacomCBS, this company’s design is relatively flat. ViacomCBS has a vertical structure, where people are grouped based on the services they provide (Daidj, 2016). The company has divisions, each with its accountants, marketers, and other roles. The divisions in this company are based on various geographical areas.

The organizational structures of the two companies have different levels of decisions of decision-making. Top executives at Netflix’s corporate headquarters make key decisions for the entire firm’s streaming operations (Kretschmer & Khashabi, 2020). For example, the CEO of Netflix is responsible for making decisions for all operations. On the other hand, at ViacomCBS, a top executive at the corporate headquarters does not make all the decisions (Daidj, 2016). In this organization, some of the decisions are made at the divisional level to improve efficiency. For instance, the CEO of each division is responsible for the effective management of operations with the division. Decision-making is an important process in an organization and should be considered when selecting organizational structure.

The organizational structure of Netflix is relatively flat, while that of Viacom CBS is vertical. A flat organizational structure indicates that the organization has few levels of management (Kretschmer & Khashabi, 2020). Due to the absence of intermediate management, more authority, such as decision-making functions, is transferred to employees. Viacom CBS, on the other hand, has a vertical organization, a top-down management style that resembles a pyramid (Daidj, 2016). The organization has established a hierarchy, with the greatest level of authority at the apex, trailed by management positions and regular employees. For Viacom CBS, its vertical structure is based on geographical divisions with its management.

The Reasons for The Similarities and Differences in The Culture and Structure

The difference in organizational structure is the need to achieve corporate goals. Netflix adopted a unitary organizational structure to ensure its objectives are met. Organizational structures enable the company and its management to fulfill or achieve its goals (San Cristóbal et al., 2018). An organization’s aims are in line with its overall strategy. Cost reduction, imitations, and innovation are the three primary components of an organizational strategy. The organization wanted to ensure that there was one center of command. Viacom CBS adopted a vertical structure to promote innovation within the division. The company wanted to ensure that divisional leaders could make their own decisions to foster creativity.

The other factor for the variation is to achieve the intended efficiency of operations. Organizational structure can influence operations within an organization (San Cristóbal et al., 2018). Netflix believed that having a flat or unitary organizational structure would enable function effectively. For example, the structure would enable them to make faster decisions linked with the efficiency of operations. However, Viacom CBS believed that having a vertical structure would help them achieve efficiency. Vertically structured businesses have clear power structures, allowing for rapid decisions and better work assignments (San Cristóbal et al., 2018). Employees in a vertical organization have clearly outlined tasks and responsibilities, which reduces uncertainty and promotes a high level of productivity.

The pace of change also led to the difference in the organizational structure at Netflix and Viacom CBS. The structure of an organization impacts the speed of implementing a change (San Cristóbal et al., 2018). Netflix chooses a flat structure to promote fast decision-making, which is integral during change management. With few channels of communication, the organization can effectively reach its stakeholders and implement a change. However, a vertical structure used by Viacom CBS is likely to reduce the pace of change management. It takes time for a change to be affected because all the divisional leaders are engaged.

The other factor for the similarity in the two organizational structures is to promote specialization. Organizations adopts specialization to increase performance, due to the fact that it enables employees to focus on their skills and experience. The structures have a functional group based on the type of services offered by the organization (San Cristóbal et al., 2018). A functional organization’s most evident advantage is that it ensures a consistent degree of departmental proficiency by grouping workers by skill. This is particularly true in large corporations when departments have many functional levels. For instance, a financial group is meant to handle the organization’s financial issues, and a human source group manages employees. A flat and vertical organizational structure enables the group to focus on their area of specialization.

The Fit Between Structure and Culture in Each of the Two Companies

Netflix Corporation

Netflix’s organizational structure fits its culture because they all enhance communication. One of the most important values of Netflix is communication. Netflix’s culture encourages communication since effective communication leads to order to maximize efficiency (Netflix, 2021). Employees should be fluent in both writing and speaking. People should listen to those on the team and know what they are saying before reacting. Similarly, Netflix’s organizational structure promotes open communication between staff members. Since communication is top-down, employees are expected to listen attentively to the direction offered and respond effectively when needed. Therefore, the culture and structure of Netflix have a positive relationship because it promotes effective communication.

The structure and culture of Netflix majors on making an impact in the industry. The employees at Netflix are required to be ready to have an impact. It is critical to keep a high level of performance to earn the respect of Netflix colleagues (Netflix, 2021). As a result, employees are expected to go above and beyond conventional standards in terms of performance. Their focus should be on the outcome rather than the process. In the same manner, the organizational structure requires employees to impact their divisions. They are expected to work effectively in their functional groups and achieve the set goals. Thus, the structure and culture are designed to impact an organization.

Both the structure and culture are focused on promoting inclusivity in Netflix. Inclusivity is an important aspect of contemporary organizations because it is related to productivity. Netflix has worked hard to create an inclusive culture that promotes inclusion and collaboration (Netflix, 2021). People from many origins and cultures work at Netflix; thus, interacting with people from different backgrounds or cultures is critical. When several points of view are considered, better decisions can be made. The organizational structure of Netflix supports this because it creates a platform that supports inclusion. For instance, geographical divisions enable the organization to hire people from different regions and cultures.

Viacom CBS

There is a fit between Viacom CBS’ organizational structure and culture. They support the creation of inclusivity in the organization. Viacom CBS is committed to making its workplace diverse through its corporate social responsibility (Viacom CBS, 2021). However, to create such an environment, there is a need for a supportive organizational structure. The vertical organizational structure used in the organization supports inclusivity due to the freedom of divisional leaders to make effective decisions. This helps cut through the middle management positions, eliminating bureaucratic layers. In addition, with this structure, regional leaders can decide to hire locals to perform operations, thereby promoting inclusivity.

Moreover, the structure and culture of Viacom CBS fit because they all promote innovation and creativity. As a tech-based company, innovation is integral for its success in the industry (Viacom CBS, 2021). This explains why the organization’s culture is geared towards increasing the capability to innovate. To achieve this, a vertical organizational structure was adopted by the organization. One of the attributes of this structure is the existence of formal control within the divisions. This type of control increases innovative performance by coordinating different functional units. Therefore, the integration of organizational structure and culture is effective in promoting innovation.

Conclusion

The similarities between Netflix and Viacom CBS are more than the differences. The two organizations operate in the media industry and provide almost similar products to their clients across the globe. They both provide streaming services and digital video content. In addition, the two firms share important values like honesty, inclusion, collaboration, and many more. On the other hand, Netflix tends to focus more on innovation than Viacom CBS. The employees of Netflix have been made to understand the role of innovation in the effective performance of the organization. The high level of disruption in the media industry due to technological changes is the driving force for creating an innovative culture. Furthermore, a culture of inclusion in an organization is aimed at increasing performance. The desire to remain relevant and perform effectively is the reason for the existence of the culture in the two organizations. Thus, the two organizations are more similar in their operations than they are different.

Despite the fact that the two companies have very distinct organizational structures, there are some similarities. Viacom CBS has a vertical organizational structure, whereas Netflix has a unitary structure. The elements that contribute to this gap are the need to fulfill corporate objectives, the desire for effective change management, and the desire for efficiency. Corporate objectives of an organization define the type of organizational structured adopted. For example, the unitary structure supports a rapid change management process at Netflix. The organization bears several similarities in these structures, particularly in terms of top leadership and functional groupings. The highest-ranking official in both structures is a chief executive officer (CEO). One of the factors for these similarities is the need to increase productivity through effective control and decision-making. Therefore, the two organizations should focus on making sure that their employees understand the culture to achieve the intended objectives.

References

Daidj, N. (2016). Strategy, structure and corporate governance: Expressing inter-firm networks and group-affiliated companies. Routledge.

Kretschmer, T., & Khashabi, P. (2020). Digital transformation and organization design: An integrated approach.California Management Review, 62(4), 86-104. Web.

Netflix. (2021). Netflix Mission, Vision & Values. Comparably. Web.

Özşahin, M., & Yürür, S. (2018). The effect of organizational structure on organizational justice perceptions of employees. International Journal of Organizational Leadership, 7, 440-453.

San Cristóbal, J. R., Fernández, V., & Diaz, E. (2018). An analysis of the main project organizational structures: Advantages, disadvantages, and factors affecting their selection.Procedia computer science, 138, 791-798. Web.

Viacom CBS. (2021). ViacomCBS Underscores the Power of Partnership, Content and Capabilities During Virtual Upfront Presentation. ViacomCBS Inc. Web.

Introduction

The internet is an information superhighway that has virtually transformed traditional practices in all sectors throughout the globe. One area that has adopted and integrated internet capabilities is marketing. Organizations are now able to create awareness of their products or services without facing physical challenges because of the internet. This paper analyzes internet marketing at Netflix. Netflix is one of the world’s leading media and entertainment companies.

The Internet Marketing Possibilities for Netflix

Netflix is a global leader in as far as internet television network is concerned. Viewers from all parts of the globe are able to stream video content from Netflix’s website and enjoy their desired movies without facing challenges caused by physical barriers, such as distance or limited DVDs (Nash, 2004).

The company has worked towards securing and maintaining partnerships with significant industry players, including Walt Disney, Paramount, as well as Warner Bros. Such arrangements that enable the company to work in collaboration with television and movie producer provide an opportunity for the firm to have a wider selection of content. In turn, this wide content has enabled Netflix to attract a huge global customer base of 33 million, with the numbers still growing (Overview, n.d.).

To further increase its internet marketing performance, Netflix has tackled government policies, such as The Video Privacy Protection Act whose existence denied video tape service providers of disclosing information about the customer without obtaining the latter’s consent (Wade, 2010).

This has led to the modernization of the VPPA, thus providing Netflix members with the freedom to share movies that they have streamed with friends through online social platforms like Facebook. This new development is significant in enabling Netflix to grow its business and customers as the sharing of content by users on social websites captures an even wider audience. The users assist Netflix in marketing the company to other potential users of the service.

With the advent of smartphone technology, Netflix has ventured into the mobile world through a launch of its own application in order to enhance its internet marketing even further. Mobile phone users who are subscribers of the Netflix streaming services can view movies and television episodes by streaming the content through their hand held devices.

The Netflix application is available on both Android and iOs mobile platforms and it provides quality service to the users. This helps the company to grow its subscriber base and increase its revenue because smartphones are continuously growing in popularity (Williams, 2012).

Internet marketing capabilities have influenced Netflix’s decision to open a production company. This new venture works differently from the traditional television shows in the sense that it provides the episodes immediately after release, instead of waiting for fixed intervals of time. This will enable Netflix to release more shows that are originally produced and avail them to the market via its internet TV platform.

Conclusion

Netflix uses the numerous capabilities of the internet to market its services. Users subscribe for the services and stream media content from Netflix’s website. The global outreach has seen the company create a customer base of close to 33 million, with the numbers still on the rise.

Netflix has availed its services for the mobile phone users through the Netflix application that is supported on both Android, as well as iOS platforms. Users can also share video content via social online platforms, such as Facebook, thereby allowing the company to reach a wider customer base.

References

Nash, K. S. (2004). Box-office star: DVD renter Netflix uses customer-tracking software and elbow grease to keep the crowds coming. Baseline, 1(26), 57-57

Overview. (n.d.). Netflix. Retrieved from ir.netflix.com/

Wade, A. E. (2010). A new age of privacy protection: a proposal for an international personal data privacy treaty. The George Washington International Law Review, 42(3), 659-685.

Williams, J. L. (2012). Learning HTML5 game programming: A hands-on guide to building online games using Canvas, SVG, and WebGL. Boston, MA: Pearson

Executive Summary

Netflix has managed to outsmart many large companies in the market. This has enabled it to emerge as the market leader. Blockbuster, which is traditionally the leading firm in this industry, has failed to realize the changing trend. Its slow adoption of the emerging technologies makes it lose the market to Netflix.

The internal structures of the firm clearly demonstrate the firm’s ability to lead the market. It is clear that the firm is the market leader. The management has ensured that the firm adopts the emerging technologies in time, a fact that has played an important role in maintaining its market lead.

A detailed SWOT Analysis of the firm reveals that the firm is still strong and has the ability to maintain the lead for some time. However, the firm faces a number of challenges in the market.

Introduction

Reed Hasting and Mac Randolph established Netflix Company in 1997 at Scotts Valley, which is in California. The firm started as a movie rental shop. It entered the market that was relatively young though there were other stronger competitors. The competitors had already established themselves in the market. The two entrepreneurs are very ambitious and work very hard to ensure that the firm gains a larger share in the market.

In April 1998, the firm launched a website through which it could reach its customers. Similarly, customers reached the firm through the site easily. The firm experienced a rapid growth before 2007, especially due to good management. Moreover, the market was friendly to the firm.

Currently, the firm has transformed since it now provides internet streaming in the United States, Latin America, Canada, United Kingdom, and the Caribbean. By 2011, the firm had 23.7 million subscribers within the United States and about 30 million subscribers worldwide.

Within the same year, it registered an income of about $ 1.5 billion. Through creativity and innovation, the firm has acquired a huge market share in the local and international market (Warner 56). The firm appreciates the fact that the market demands creativity. The firm is the undisputed market leader in the service industry. Although other firms have come out strongly, none is yet to rival it.

Problem Statement

Netflix started out as a very small DVD rental firm in Los Gatos in California. Although the management of the firm is ambitious and has various strategies to ensure success, Blockbuster has a very strong grip of the market. It is unbelievable that a small firm can rise to rival and even displace a giant competitor within a decade. Netflix is the leading movie rental shop and pay per view services.

The firm has managed to hold a tight grip of the market in North America and parts of Europe. Such a large firm as Amazon.com, which offers similar products through a daughter company, focuses on the German market. Competitors are keen to avoid rivalry with Netflix in the American market. The firm recently launched a prize competition where firms were invited to help predict the behavior of customers.

The move had positive impacts because the firm managed to come up with strategies that would help it predict customer behavior in the market. The strategy improved its sales in the market. However, the biggest worry is how long the firm will stay in the market. The firm eliminated competition, which in itself is an intensive market research too that is very important in determining marketing future strategies.

Analysis

Netflix experienced massive growth over the past decade. A number of reviews can be used to examine the profitability of the firm. In order to bring to focus the environmental factors influencing the firm, a SWOT analysis would be used.

SWOT Analysis

The strength of the company lies in various factors. One of the major strengths of the firm is its brand name (Grossman 43). Netflix brand is one of the strongest brands in the services industry. The brand has helped the firm in maintaining the market share in the face of an increasingly competitive market. The firm has a financial strength that cannot be compared to any other. It has been in operation for over 15 years.

In the process, the firm has amassed enough wealth. As such, the firm is capable of implementing its key projects, including research and extension project. Moreover, the firm operates in various countries outside the home market. As such, it is capable of balancing its production. For instance, when one section of its market is experiencing economic growth, the other could be facing recession.

Despite the above strengths, Weiss (24) says there are some weaknesses. This is a fact that has seen some of competitors eat up a section of the market. Many people have expressed negative views as regards to the products of the company. Some of its products are meant for adults but can easily be accessed by underage children. It is apparent that the firm is yet to develop a solution to the problem.

The firm has some opportunities. These opportunities have helped the firm experience massive growth. According to Grossman (48), Netflix has exploited a vacuum that existed in many countries in the world, especially in the Caribbean market.

Weiss (26) argues that there was no competition for this firm in the overseas markets. This company was able to make enough profits because of lack of competition. Technological advancements have also enabled the firm to conduct trade easily. This is due to improved means of communication.

Competition is one of the threats that the firm faces. The market is very competitive. Charantimath (46) notes that many firms, such as Amazon.com, have come up with products that are close substitutes of those offered by Netflix. They have eaten up the markets of Netflix.

Political instability in some countries is another threat that the firm faces. When there is an internal strife, such as the one experienced in Egypt and Libya in the recent past, the firm loses millions of dollars due to destruction of assets. During such periods, the firm loses profits acquired from oversees countries. Surprisingly, the firm must pay employees even if profits are not made. This hurts the firm financially.

Competitor Analysis

Although many competitors of Netflix in the movie industry exist, Blockbuster Videos is the main threat. Just like Netflix, Blockbuster is also an American firm. According to Clinton (11), it has a considerably huge market share in the American market, as well as other countries overseas. Blockbuster understands the emerging market trends. Furthermore, it responds to them appropriately.

This has helped it develop a niche in the market. Because of this, it is capable of competing with Netflix. The firm has diversified its production lines as one way of ensuring it is not affected by losses encountered in other areas. Given the fact that it is the world’s leading in-store video renting chain, its customers can now acquire products online.

Market Analysis

The market is getting increasingly competitive. The industry is acquiring new products due to technological advancements. These products are viewed as being more entertaining. According to Clinton (96), this has seen a massive shift from consumption of old products.

People prefer digital products to analogue products. The emerging technologies are completely changing the trend in the market. Given the new trend, Netflix must readjust its operations in order to counter the new challenge.

Environmental Analysis

Environmental analysis takes various forms. The competitive environment has been discussed comprehensively in the previous sections. Other environmental factors include factors such as technology, environmental conservation, and economic growth. The factors might affect the operations of the firm in a number of ways. The issue of sustainable growth affects the company in many ways.

The international environmental law states that all companies must aim at preserving the environment. This means that each company should come up with strategies aiming at minimizing environmental damage. The firm is expected to face challenges from environmental organizations. In fact, the firm has been accused of damaging the environment in various occasions.

Internal Analysis

The internal structures of Netflix clearly demonstrate that the firm is capable of maintaining its market share for quite some time. The firm has the financial strength, as well as the human resource capacity. This would help it further its growth.

Works Cited

Charantimath, Paul. Total Quality Management. New Delhi: Pearson Education, 2006. Print.

Clinton, Hillary. US Department of State, Diplomacy in Action. Washington: Potomac Books, 2011. Print.

Grossman, Richard. “The care and feeding of high-potential employees.” HR magazine 56.8 (2008): 34-53. Print.

Warner, Benson. Organization Change: Theory and Practice. Thousand Oaks: Sage, 2011. Print.

Weiss, Williams. “Building morale, motivating, and empowering employees.” Supervision 72.9 (2011): 23-28. Print.

Significance strategy changes at Netflix

In the early stages when Netflix was conceived, it had a competitive advantage over its competitors thus; it only needed sustainable innovations in its business to enhance its growth. Netflix pioneered online DVD rental market while its competitors were doing it manually; this was a great competitive advantage. The competitive advantage created a barrier between Netflix and its competitor. This enabled it to flourish very well in the online DVD rental market. The first section of this paper will address the early strategies which Netflix employed to beat its competitors. These strategies will be analyzed in the following table:

Table 1.0: Early Strategies

As Netflix was preparing to enter online video market popularly known as Video on Demand (VOD), more competitors were already in it. This posed a great challenge to the organization thus; there was a need to come up with new core competencies so that it can out-do its competitors. Due to the stiff competition on VOD, Netflix had to employ new strategies in its business activities. The following table discusses the new strategies the organization had decided to implement so that it can build a competitive advantage over its customers.

Table 1.1: New strategies

The intended and emergent strategy making at Netflix should employ disruptive innovations. This will assist Netflix to retain its customers despite the emergence of new competitors in the business. Netflix will also be in a position of improving its services as well as creating unexpected sets of values to it VOD services.

Executive Summary

Netflix has unique staffing practices that enable it to hire experienced and dedicated employees. The company believes in hiring, rewarding, and retaining qualified and mature workers. The staffing practices are in line with Netflix’s primary business strategy. The business seeks to dominate the digital content industry globally. Recruitment of experienced workers enables the company to produce quality digital content that promotes competitiveness.

Netflix’s organizational structure comprises the chief executive officer and six chief officers who report directly the former. The chief talent officer heads the human resource department. Even though Netflix’s staffing practices enable it to hire skilled workers, their skills become obsolete after some time, forcing them to leave. The company has lost many valuable workers since inauguration. Netflix should review staffing practices to enable it to hire young and tech-savvy workers who can quickly adapt to changes in demand for digital content.

Introduction

In the contemporary market, organizations compete for top tech talents to boost their competitive edge. Cases of companies poaching experienced workers from rival firms are common across industries. Demand for skilled employees makes it difficult for small startups and businesses to recruit and retain a workforce that can guarantee success. The human resource team is required to be innovative to enable companies to source the right employees (Slocum, Lei, & Buller, 2014). One of the mistakes that human resource managers commit is outsourcing recruitment activities to third parties.

Even though recruiting firms may reach many potential candidates, the most priceless sourcing emanates from searching within a company’s network. Referrals from employees can assist business to hire experienced and dedicated workers. One of the companies with the best staffing practices is Netflix. The company’s cultural values dictate staffing procedures. The chief talent officer is responsible for hiring staff.

Organization Background

Netflix is an American multinational corporation that specializes in the entertainment industry. The company was established in 1997 and has its headquarters in Scotts Valley, California. It is renowned for offering video-on-demand online, streaming media and DVD via mail. In 2013, the company diversified its services by venturing into online distribution, television production, and the film industry. Netflix has grown its television production and film series since 2013.

Allen, Dorothee, and Holly (2014) aver that it runs an online library comprising television shows and films. It enables Netflix to distribute original content. In 2014, the company released “Numerous original series and films, more than any other network or cable channel” (Allen et al., 2014, p. 139). The goal of the company is to expand services to as many countries as possible. Currently, the company serves over 190 countries and is in the process of introducing services to additional states. Netflix works in liaison with local media companies to enable it to distribute its content. The company’s goal is to make sure that 50% of its library comprises original material by 2019 (Allen et al., 2014). Netflix has already embarked on a program to produce original anime and film content.

Business Strategy

In about ten years, Netflix has grown its market share from seven million to over 110 million subscribers across the globe. Netflix’s growth is an exceptional achievement. Not many businesses can expand their market share to such an extent within a short period. Ryan (2013) avers, “Netflix does not try to offer content geared to a single audience with a specific interest” (p. 397). Additionally, it does not target a mass audience.

If the company does not use these strategies, one wonders how it has managed to grow its market share and increase subscription. Netflix uses a “conglomerated niche” strategy to grow subscription and expand its market share. The company understands the needs of diverse market segments. Thus, it develops numerous programs that meet the interests of different audiences. They include action series such as Daredevil, complex serial dramas such as House of Cards, unique films, and horror movies.

The company utilizes the internet to distribute its content. Internet distribution enables Netflix to collect sufficient information regarding the interests of target customers and subscribers (Ryan, 2013). Moreover, the company uses the distribution channel to evaluate behaviors of the subscribers. Information gathered via internet distribution helps the organization to organize its library. Netflix does not share information regarding the data it collects from customers.

Nonetheless, the company’s ability to obtain viewing data from an international market base helps it to detect changes in viewer interests and identify micro-genres. Netflix’s customers have different opinions regarding the company’s brand. They do not view the company as a unit. Instead, they see it as an expansive library comprising numerous rooms and nooks. Subscribers do not have to scan through the entire library to get what they want. They understand exactly where to go once they log into the company’s library.

In the global arena, Netflix endeavors to produce content that meets the needs of the local customers. For instance, it translates original content into local languages. In cases where the company cannot provide sufficient amount of material in local languages, it liaises with other media companies. Netflix buys content from local producers through loyalties or upfront fee. The distribution of local content has enabled Netflix to assert its influence in many countries across the globe.

The sale of local content allows Netflix to compete with networks or media that specialize in local language entertainment. Localization of content enables Netflix to compete even in the home markets. For instance, in Canada, there are many immigrants of Indian origin. Netflix purchases content from India and sells it to immigrants living in Canada.

Organizational Structure

Netflix has an operational, organizational structure that is ordered based on the company’s functions and objectives. The organizational structure does not reflect regions or customer segments. According to Yoon-Kyung (2014), the company’s structure is centralized, and the chief executive officer (CEO) has direct influence over all the departments. Netflix comprises six units that are headed by chief officers (see appendix 1).

Organizational structure at the department level does not follow a particular order. Chief talent officer heads the human resource department. The officer is a member of the top executive team. Currently, Jessica Neal is the chief talent officer for Netflix. She oversees multiple functions attributed to human resource management. Her principal responsibility is to facilitate recruitment and retention of skilled employees.

Netflix values corporate culture, which contributes to its success. Thus, the chief talent officer is responsible for inculcating the culture into the company’s operations. As aforementioned, the structure of the human resource department does not follow a distinct order. Thus, the chief talent officer works with a team of 33-member human resource staff that helps to recruit and retain veteran workers.

Human Resource Strategy

Netflix’s success is derived from its unique human resource strategy. The company’s human resource management practices defy common beliefs. The corporation is innovative regarding talent management. According to McCord (2014), Netflix uses two approaches to human resource management. The company hires only experienced people. Additionally, Netflix allows employees to leave whenever it feels that their skills are no longer required. The company employs, compensates and tolerate just skilled employees. The chief talent officer holds that employees’ errors come as a result of recruiting staff that is not devoted to company’s interests. Many companies spend a lot of time and resources formulating policies to guide human resources. There would be no need for the systems if a company hired the right employees.

Netflix believes in telling employees the truth about their performance. As a result, the company does not trust in the effectiveness of performance reviews (McCord, 2014). The chief talent officer encourages employees to discuss their performance in the course of operations. The company uses unconventional 360-degree reviews to evaluate performance. Employees are encouraged to share opinions regarding practices that their workmates ought to uphold, abandon or change. Workers feel motivated when they know the truth about their performance. At Netflix, the chief talent officer is responsible for establishing high teams.

The company pays employees based on the offer in the market. Employees are allowed to have interviews with rival companies like Amazon and Hulu. It makes them understand the market value of their skills. The company does not prevent workers from leavening whenever they are not satisfied with employment terms. McCord (2014) alleges that Netflix does not evaluate managers based on their mentorship or coaching skills. Instead, they are assessed according to the ability to establish great teams in their respective departments.

Netflix is one of the best-paying companies in the world. The leadership believes in paying employees according to their services. McCord (2014) maintains that the company’s principle is “hire the best and pay top dollar for it” (p. 5). The business does not issue bonuses to employees. It argues that workers who trust in a company’s values do not require rewards to work hard. The company allows workers to convert part of their salary into stock. It gives them an opportunity to own part of the company, therefore devoting their energy to the realization of its goals.

Netflix’s business strategy centers on global integration, innovation, and business value. The human resource function plays significant roles in promoting the company’s business strategy. The human resource hires only dedicated and experienced employees. One of the factors that inhibit organizational growth is employee errors and lack of commitment. Hiring experienced and devoted workers enable Netflix to minimize costs attributed to negligence.

The company does not have human resource policies to govern employee activities. Workers are encouraged to make independent decisions in their workplaces. It goes a long way towards invoking ingenuity amid employees, which translates to enhanced organizational performance. Netflix has managed to assert its influence in the digital content industry due to hiring the right employees. It has a pool of skilled workers who identify and address interests of different subscribers. Retaining employees at a time when they need to leave affects their productivity and overall organizational performance. Allowing employees to go whenever they feel that their services are no longer required avoids confrontations.

The leadership of Netflix regards employee appraisals as ritualistic and of no value to the business. Thus, the company does not conduct performance reviews. Instead, employees are encouraged to learn from one another. As a result, workers remain motivated and strive to develop their careers. McCord (2014) claims that self-motivated employees dare to take challenging projects. Encouraging employees to build their jobs independently enables Netflix to grow the volume of its digital content. Employees are not afraid of taking challenging projects. The chief talent officer has to make sure that new employees understand and embrace Netflix’s corporate culture. It goes a long way towards ensuring that the workers adjust to the company and work towards the realization of its business strategies.

Many organizations fail to realize their goals because they do not involve human resource in strategic planning. Netflix appreciates the contribution of human resource to organizational success. Consequently, human resource staff plays a critical role in the strategic planning. It helps in identification of desired skills to meet specific corporate goals. Netflix cannot realize its strategic goals without the right employees.

Involvement of human resource in strategic planning helps the chief talent officer to understand the direction of the company. The officer assists in resolving challenges that arise due to disparities amid company’s objectives and what is feasible in human resource terms. Participation of human resource in strategic planning enables Netflix to lay workable plans, thus avoiding potential hold-ups.

Netflix formulated its human resource plan at an awkward moment. McCord (2014) alleges that the company formed its strategy after the 9/11 attack. The terror attack forced the corporation to defer the launch of its initial public offering (IPO). According to McCord (2014), Netflix learned a significant lesson after releasing one of its valuable employees whose skills were no longer required. The company expected to make losses after losing the employee. To the contrary, Netflix enjoyed immense success. The administration realized that it was imperative to release employees who did not add value to the organization.

Today, the company has a human resource plan that seeks to assist it in retaining only experienced employees. It offers severance packages to employees who try to exit. The kit enables the employees to reorganize themselves and look for jobs in organizations that require their skills. The company does not have operation policies. Instead, employees are invited to make decisions based on logic and prevailing conditions. McCord (2014) argues that allowing workers to rely on logic enables Netflix to make invaluable choices at low cost.

Staffing Practices

Netflix’s corporate culture influences recruitment process. The company has recruiters who help to identify potential employees. Nevertheless, the decision to hire lies with the chief talent officer. The company lacks a structured recruitment process. Neither does a hiring committee or consensus drive the hiring process. According to Ojer and Capape (2013), Netflix does not use any specific rules to build rapport with candidates.

Ojer and Capape (2013) state, “Our guiding lens is not: ‘What does my company or boss say we should do?’” (p. 579). Instead, the company focuses on informing candidates about its culture. The recruitment process is organized in a way that the hiring team gives applicants a picture of their future life in the company. Netflix hopes to hire experienced employees in every recruitment drive. The firm structures the recruitment process such that it reflects its fundamental values. It enables the applicants to determine if Netflix’s culture matches their motivation. The move helps the company to attract the right candidates.

Three pillars govern staffing practices at Netflix. They are transparency, collaboration, and feedback. The company encourages collaboration between chief talent officer and recruiters. The chief talent officer attends recruitment drives and interacts with candidates. Netflix values transparency in recruitment practices. Villarroel, Taylor, and Tucci (2013) claim, “Netflix gives the chief talent officer full access to the company’s applicant tracking system to increase understanding between them and recruiting staff” (p. 24).

The system enables the officer to access information about the number of applicants and their competences. Moreover, they know the applicants that recruiters turn down and the reasons for the same. The interaction between recruiters and the chief talent officer promotes cooperation and trust.

Analysis of Staffing Practices

Managers and human resource staff view Netflix’s staffing function as an efficient way of recruiting the right employees. They are not afraid of hiring inexperienced team because the exercise attracts only the most qualified candidates. On the other hand, employees value the company’s recruiting practice because it does not discriminate against a candidate. All potential applicants get equal chances of being hired. Netflix encourages referrals from employees.

Consequently, workers have an opportunity to refer their family members or friends to the company whenever there are vacancies. There exist numerous human resource objectives associated with Netflix’s recruitment practice. The company’s primary goal is to recruit, reward, and retain only qualified and fully-developed employees. It helps to boost organizational performance as the company hires individuals who are willing to give precedence to its interests.

Netflix’s human resource endeavors to build a team of committed staff. It underlines the reason the HR department continues to look for potential candidates even when there are no available vacancies. The objective of communicating corporate culture during recruitment is to ensure that candidates understand the customs of the organization that they are about to join. The staffing practice supports Netflix’s business strategy as it provides the company with experienced and committed workers who facilitate its growth. The method enables the company to develop quality digital content, thus boosting its competitive edge.

Despite the company recruiting experienced employees, the rate of turnover is high compared to other technology companies like Facebook, Amazon, and Hulu. An analysis of the firm shows that many employees have left the organization since its inception. Indeed, some employees regard Netflix as “firing machine” due to the high number of workers who leave the company.

Recommendations

Technology changes rapidly. Therefore, organizations should hire employees who can adapt to the transformations without difficulties. One of the reasons why Netflix allows invaluable employees to leave the company is because their skills are no longer required. The company would not lose such workers if they were able to adapt to the changing environment. Netflix needs to review its recruitment practices to ensure that it hires young, tech-savvy candidates who can adapt to changes swiftly. Recruitment of experienced employees saves Netflix the cost attributed to training. Nevertheless, recruiting young and dedicated candidates would minimize turnover.

Moreover, it would accelerate the rate of innovation, thus enhancing competitiveness. Netflix’s most significant market share comprises the youths. Hiring young workers would enable the company to anticipate and exploit changes in consumer demands as the employees would interact with customers efficiently. Changing the staffing practices would result in Netflix incurring costs associated with employee training. Moreover, the company would have to introduce working policies to regulate employees. Competition in the digital content industry does not allow Netflix to continue relying on flawed recruitment practices. The company requires reviewing the practices within three months. Otherwise, the organization will continue to witness high turnover as more employees become redundant.

Conclusion

Netflix believes in recruiting, rewarding and retaining experienced workers. The company hires employees with vast experience in technology and digital content industry. Moreover, it allows employees to leave once their skills are no longer significant. The company has aligned human resource practices with its business strategy. Recruitment of experienced workers enables Netflix to produce quality digital content and grow its market share worldwide.

The chief talent officer works in liaison with recruiters to identify and hire the right employees. Even though Netflix’s recruitment practices enable it to employ experienced workers, it does not help to reduce employee turnover. The company has lost many valuable employees since its establishment. Some candidates are enthusiastic to join Netflix only to realize that it was not the right company for them after working for few years. The firm requires changing staffing practices to hire young employees who can adapt to changes in technology easily. It will help to build a team of experienced workers who do not have to leave the company after few years due to their becoming redundant.

References

Allen, G., Dorothee, F., & Holly, D. (2014). The rise and fall of Netflix: What happened and where will it go from here? Journal of the International Academy for Case Studies, 20(1), 135-143.

McCord, P. (2014). How Netflix reinvented HR. Web.

Ojer, T., & Capape, E. (2013). Netflix: A new business model in the distribution of audiovisual content. Journalism and Mass Communication, 3(9), 575-584.

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Appendix

Appendix 1: Netflix Organizational Chart