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Netflix - Coggle Diagram
Netflix
Ethics
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Some shows show explicit content which many costumers have actioned against
For eg... 13 reasons why was a tv show released in 2017 that discussed topics of sexual harassment, rape and suicide.
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Ethics towards employees:
- Almost equal distribution of male and female workers and they have a wide range oc cultures that work in Netflix
- Build a culture of inclusion and acceptance
Strategy
Definition: Significant long term planning decision that organisation make in order to meet the needs and wants of their stakeholders
2 main strategies:
1) Adaptation: In 2021 alone, Netflix spent “$2.3 billion”(Pratap) on R&D in 190 countries for market analysis to ensure their content meets customer demand and enhances customer loyalty.
- “Delight customers in hard-to-copy margin-enhancing ways”(Biddle) is Netflix’s key principle. Netflix achieves this through R&D investments that analyze market trends in their regions of operation and create content strategies.
2) Innovation: In 14 years, Netflix has adapted their business model four times from a DVD rental company to a streaming service to meet the market dynamics.
- Its technology and development team (T&D) is constantly pushed to innovate new products using “The Software Life Cycle(SDLC)” (figure 3) process, focusing on optimizing “Time to Value (TTV)”(Netflix TechBlog). Each SDLC is assigned to a person --> job specialisation
New innovations include:
- Fast laughs
- Kids accounts
- Parental control
- Netflix games
“Netflix was ranked as #1 in the Reputation Institute 2019 U.S. RepTrak 100”(Hastings and Meyer) beating companies like Google, Amazon and Nike.
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U-shaped organisation structure
This organization structure is relatively flat, allowing rapid response to changes in the entertainment industry. Netflix’s corporate structure includes 3 main characteristics: 1.Functional groups for online and non-online operations 2.Geographical divisions for managing regional markets 3.Divisions of product and operation types
Innovation
Definition: Incremental or radical improvement to a business idea, or the generation of new ideas in relation to a final product, service or process, as a result of. of internal or external influences
The lack of micro-managing has encouraged employees to innovate. When Netflix had no ‘download’ option and Hastings was publicly opposed to the idea of adding it, the employees researched the idea, presented their findings and ultimately won his vote of approval(Koss). The “House of Cards” series was approved for production by the management in less than 30 minutes because employees at Netflix laid a solid groundwork(Zalani). Hasting has always encouraged risk-taking and creativity at Netflix by crafting clear values that give employees “independence, ownership and empowerment”.
In 2020, Netflix faced a 23% increase in revenue target, generating “$6.4 billion in sales”(Rodriguez)
Rather than micro-managing, the manager's role is to “coach, set context, give suggestions and feedback, and be informed about the team’s work”
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Culture
Definition: The adaptation of business objectives, strategies and operations to accommodate changes, both internal and external, within the dynamic business environment.
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Country and preferences
The way Netflix produces originals are very unique in terms of their topics and content. Netflix appeals to different agendas of a country for eg women empowerment, LGBTQ rights etc. For eg Darlings
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Netflix follows it CSR responsibility by having almost an equal ratio of men to women working in a movie, whether they are the lead actors or the directors/staff.
Change
Definiton: the modification or transformation in the way business is conducted as a response to internal factors or external influences.
Globalisation
Definition: A wide range of internal forces (such as social, cultural, technological and economic integration) influence. business organisation
Introduction
Netflix is an online streaming service that first started operations on August 29, 1997. It started off as a DVD company, however quickly adapted to market changes and launched their OTT platform. Today, Netflix has a revenue of over $30 billion with 222 million total loyal subscribers. As Netflix gained its popularity and expanded into over 190 countries, they made a constant effort to (cuegis concept) their marketing strategies to meet _(cuegis concept)___