Netflix: International Expansion

Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the production of in-house content. In January 2016, to deal with slow growth in the domestic market, the company announced an aggressive expansion of its services into a total of 190 countries, thereby giving Netflix coverage over nearly the entire world. International expansion did not come without its challenges. Netflix faced regulatory compliance issues in its targeted markets, competition with domestic competitors, and the need to satisfy local preferences. Was the enormous cost of such an aggressive expansion strategy the right direction for the company?

Collection: Ivey Business School (Canada)
Ref: IVEY-9B16M070-E
Format: PDF
Number of pages: 11
Publication Date: Apr 26, 2016
Language: English
Review date: Apr 26, 2016

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Description

Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the production of in-house content. In January 2016, to deal with slow growth in the domestic market, the company announced an aggressive expansion of its services into a total of 190 countries, thereby giving Netflix coverage over nearly the entire world. International expansion did not come without its challenges. Netflix faced regulatory compliance issues in its targeted markets, competition with domestic competitors, and the need to satisfy local preferences. Was the enormous cost of such an aggressive expansion strategy the right direction for the company?
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Year: 2016
Geographic Setting: United States
Industry Setting: Arts, Entertainment, Sports and Recreation;

Learning Objective

This case is suitable for various business courses, including international management, technology management, international marketing, and strategic management, at both the undergraduate and graduate (MBA) levels. By understanding these objectives, students can also learn the process of a firm’s strategic actions, such as international expansion, and they can think about how to effectively implement such strategic initiatives. After completion of this case, students should be able to: ·Understand a company’s motivation to expand internationally. ·Assess the structure and technological development of the industry. ·Identify a firm’s competitive advantages. ·Evaluate the benefits and costs of international expansion.

Netflix: International Expansion

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"Netflix: International Expansion"