Netflix Akshay

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Some of the key takeaways from the document are that Netflix needs to focus on local and regional content in India, offer affordable plans, and improve connectivity issues to better cater to the Indian market.

Some major macro-environmental factors affecting Netflix India discussed in the document include censorship, threat of piracy, high operating costs, preference for regional content, poor connectivity and data plans.

Using Porter's Five Forces model, the document analyzes that there is high threat of substitutes, high bargaining power of buyers and suppliers, and high level of rivalry in the SVoD industry in India.

NETFLIX IN INDIA: THE WAY AHEAD

Submitted by,
Akshay vaibhav
MFM/18/373
1.How should Netflix analyse differences or distances between India
and its other markets while crafting strategies for the Indian market
and consumer?

•Poor Internet
•Prefers Local and connectivity& coverage
regional content •Majority of the people
• Majority of the prefer offline system
consumer base is from over online streaming
18-24 age group

Cultural Geography

•Censoring law •Higher Operating Cost


•Taxation-GST Administration Economic •High Bargaining power
•Regulatory restriction •Major customers falls
from the government under low income level
2.Analyse the macro-environmental factors affecting Netflix India to
ascertain the best strategies for the company.

• Censorship
Political • Threat of piracy
• Data Protection

• High operating cost


Economic • Withdrawal of subscription after free trail
• High Bargaining power of the customer

• Indian Customers prefer more regional base content


Social • Majority of the market prefer offline mode over streaming video

• Poor Connectivity
Technology • Unavailability of unlimited data plan
• Less penetration in the rural area
3.Analyse the level of competitiveness in the SVoD industry using
Porter’s Five Forces Model
Threat of Entrants – High
• The attractive and competitiveness of a market
• Less regulation aids more entrants to the market to increase competition
• The less capital is needed to set up media streaming

Threat of substitute – High


• Amazon prime,Hotstar,Youtube provides similar service
• The threat of substitute also depends on the price and services offered by
Netflix.

Bargaining Power of BUYERS – High


• Industry have a high bargaining power owing to presence of numerous
companies offering the same products.
• High Tendency to switch the service provider
• Looking for extra service along with the subscription
Bargaining Power of SUPPLIERS – High
• movie networks and television stations getting into streaming services, these
companies are not willing to share their content with Netflix.
• Higher operating cost to create new Netflix original series

The level of rivalry-High


• Competition in streaming media is very high due to presence of other
established companies scramble for consumers both indirect and direct
competitors
• Directly, Netflix competes with Amazon, Hulu, eros and hotstar to provide
same service platform, and product range and services.
• Indirect completion is from DTH , Theatres etc.
4.Conduct SWOT analysis of the business model adopted by Netflix in
the Indian market

• High brand equity • Higher Operating Cost


• Global Presence • Poor internet
• Large Customer base connectivity
• Netflix original Series • Higher Price Line
• Adaptability • Limited Copyrights
• High Definition Video • Absence of sports and
• Regional series popular regional series
• Trail and use
• Simplicity of user
interface

• Increase in online • Piracy


video viewers • Government
• Technological Regulations
advancement • Competitive pressure
• Increase in number of • Password Sharing
smart phone users
5.Evaluate and assess the resources and capabilities of Netflix using
the VRIO framework

CAPABILITIES VALUE RARE IMITABILITY ORGANISATION

NETFLIX ORGINAL YES YES NO YES

NETFLIX ORGINAL YES YES NO YES

Price range YES NO YES YES

Online
Streaming(via YES NO YES YES
different gadgets)
6.What strategies should Netflix follow in order to succeed in the Indian
market?

• Focus on Netflix Original series in the Indian Language.


• Additional benefits should be given along with the subscription
• With cheap data and smart phone penetration focus should be given on mobile
tier offering.
• Broaden the access to the service so that more people can enjoy that
increasingly relevant content.
• Screen sharing option.
Thank you

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