Globalization and Information Research – Netflix

Globalization and Information Research – Netflix

The Most Important Strategic Moves That Propelled Netflix’s Successful International Expansion

According to Brennan (2018), the two core factors that have contributed to the company’s growth are its three-stage expansion strategy and how it appeals to its customers. When entering the market, the company did not enter all the markets at once. Netflix started with countries whose market segments were similar to those of its local market in the US. The experiences and lessons learned from these markets acted as a guideline for entering the new markets. As of 2015, the media giant was operating in approximately 50 countries. Secondly, in order to appeal to potential customers, the company adapted to the local cultures and preferences of those customers through its content and partnerships with the local stakeholders. Our assignment writing help is at affordable prices to students of all academic levels and disciplines.

Why was this investment important? What type of information did Netflix derive from the data collected?

Netflix used big data analytics as a crucial component in its expansion overseas. The second phase in its expansion strategy entailed detailed expansion. To obtain reliable data and information regarding market choices, the company invested in big data and analytics technology. The investment was important since it offered a basis for predicting consumer behavior and decision-making (Spotfire, 2014). Important information and dynamics obtained through analytics included the channels used by the potential customers to access information, their lifestyle and income factors, and the cultural aspects, such as the appropriate content that could affect Netflix’s entry into the new markets. This enabled the company to tailor engagement and marketing strategies to the preferences of the particular target group.

What is Exponential Globalization?

According to the article, exponential globalization refers to a market entry and expansion strategy that entails a carefully strategized and planned expansion cycle, implemented aiming expansion to enter more countries to reach more customers and actualized with an increasing speed. In fact, Brennan (2018) suggests that other companies can employ the method to enter new markets.

US Companies with Failed Expansion Efforts Externally; Starbucks Case of Australian Market

The company is a world leader in coffee chain stores. However, its efforts to push its business into Australia in 2000 did not turn out as expected (Seale, 2020). This is because the local market dominated the Australian coffee supply, and Starbucks was deemed expensive for those who visited coffee chains more often. The market entry into Australia was a struggle until 2008, when the company decided to close its 61 stores, leading to a loss of $ 143 million (Seale, 2020). Starbucks even retained some of its chain shops in Australia until 2014, when it handed over the 24 chain shops to Withers Group, which now operates the chain shops in Australia. The assessment seems reliable since it provides links to external sites containing in-depth analysis of the instances when companies failed in new market entries.

Some of the reasons why certain companies’ expansion plans have failed in the past.

The article by Seale (2020) lists some of the reasons why companies may fail. These include poor timing, unaccommodating cultural practices, restrictions by law in the new markets, stiff competition from local producers, poor market study and analysis, among other factors.

References

Brennan, L. (2018). “How Netflix Expanded to 190 Countries in 7 Years.” https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years

Seale, A. (2020). “Seven Epic Cases of Companies That Failed Internationally.” https://www.firmex.com/resources/blog/seven-epic-fails-by-businesses-that-tried-expanding-into-foreign-markets/

Spotfire. (2014). “Big Data Analytics: The Gateway to Success in New Markets.” https://www.tibco.com/blog/2014/03/04/succeed-at-entering-new-markets-via-big-data-analytics/

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Purpose

This assignment is intended to give you an opportunity to strengthen your skills in gathering and analyzing business-related information. It provides a deeper understanding of how companies can look at globalization as part of their strategic and operational plans. The assignment has two parts: one focused on information research and analysis, and the other is on applied analytics.

Response – Kicking a Bad Habit

Resources:

Microsoft Excel®
“How Netflix Expanded to 190 Countries in 7 Years” from Harvard Business Review
Call Center Waiting Time

Part 1: Globalization and Information Research

Context: Companies that perform well in their country of origin usually consider expanding operations in new international markets. Deciding where, how, and when to expand is not an easy task, though.

Many issues need to be considered before crafting an expansion strategy and investing significant resources to this end, including:

the level of demand to be expected for the company’s products/services
presence of local competitors
the regulatory, economic, demographic, and political environments

Carefully researching and analyzing these and other factors can help mitigate the inherent risk associated with an overseas expansion strategy, thus increasing the likelihood of success.

As a data analyst in your company’s business development department, you’ve been tasked with recommending countries for international expansion. You’ll write a report to the company’s executive team with your research, analysis, and recommendations.

Instructions:

Write a 525-word summary covering the following items:

According to the article listed above, what were the most important strategic moves that propelled Netflix’s successful international expansion?
The article mentions investments in big data and analytics as one of the elements accompanying the second phase of overseas expansion. Why was this investment important? What type of information did Netflix derive from the data collected?
According to the article, what is exponential globalization?
Not all international expansion strategies are a resounding success, however. Research an article or video that discusses an instance in which an American company’s expansion efforts in another country failed. According to the article/video you selected, what were the main reasons for this failure? Do you agree with this assessment?
Explain some of the reasons why certain companies’ expansion plans have failed in the past.