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Netflix began its journey of global expansion in 2010 when it first offered stre
Netflix began its journey of global expansion in 2010 when it first offered streaming service to Canada. Seven years later, the company’s service is available in over 190 countries. Information on Netflix’s global expansion can be found in the following articles.
Article 1: https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years
Article 2: How Netflix used partnerships and alliances to internationalize and then internalize the global streaming industry Download How Netflix used partnerships and alliances to internationalize and then internalize the global streaming industry*
(* To facilitate understanding, the concept of “internalization” mentioned in Article 2 is the same as “vertical integration” we discussed in the last module. It basically refers to the process in which a firm brings in-house the activities that were previously undertaken by external parties)
Please use the two articles as a starting point and draw on resources from the Internet to answer ALL of the questions below. Your responses must be closely based on learning material from this module and supported with factual evidence.
Q1. In what ways does Netflix make efforts to adapt to local conditions and preferences? Explain.
Q2. Do you think Netflix also tries to take advantage of economies of scale through standardization? Explain.
Q3. Based on your answers to the above questions, what strategy do you think Netflix uses to compete in the global market – international, global, multidomestic, or transnational? How does this strategy benefit Netflix?
Q4. What entry modes has Netflix used to expand into different foreign markets? Do you think its choices of entry modes were reasonable for the corresponding markets? Explain with examples.
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