The paper focuses on strategic issues of the management of Netflix in India, pointing to the following key question: How can the company adapt its business model to gain a foothold in the Indian market? Should the company conduct acquisitions to deal with the situations? Or should Netflix exit India and shift focus to other global markets instead?
Netflix, a leading American online media streaming and production company, expanded successfully across the globe in the 2010s. However, in India—a very important market for Netflix due to its large population and strong demand for video streaming—Netflix seems to be struggling. Dominant competitors and specific customer requirements have made growth difficult for the firm.
In this case, both Netflix and the Indian video streaming market are analyzed, with several strategic options are compared. The team of authors recommends purchasing local studios and production houses, so that Netflix can continue to pursue its verticalization strategy and meet local consumer demands. We also suggest Netflix adapt its price to appeal to more users, as Indian users are generally more price-sensitive. While it might dilute Netflix’ premium brand, we believe such risk can be mitigated by adopting a more bare-bones, lower-cost subscription targeting the large number of Indian consumers who use their smartphones to access the internet.
Inhaltsverzeichnis (Table of Contents)
- Introduction and Company Overview
- Country Overview
- Industry analysis
- Overall Market
- Competitive Landscape
- Consumer Preferences
- Possible Strategies
- Deepen vertical integration with local content producers
- Go downmarket (undercut Hotstar)
- Acquire Indian competitors (e.g. Jio TV)
- Exit the market
- Recommendations
- Key Takeaways
- Appendix
- Sources
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This case study analyzes the challenges faced by Netflix in the Indian market, a crucial market due to its large population and strong demand for streaming services. The primary objective is to determine how Netflix can adapt its business model to gain a foothold in India, considering the presence of strong competitors and specific customer requirements. The case explores various strategic options, including acquisitions, market adjustments, and even potential market withdrawal.
- Netflix's strategic challenges in the Indian market
- Competitive landscape and market dynamics in India
- Analysis of consumer preferences in the Indian video streaming market
- Evaluation of potential strategic options for Netflix in India
- Recommendations for Netflix's future strategy in India
Zusammenfassung der Kapitel (Chapter Summaries)
The "Introduction and Company Overview" chapter provides an overview of Netflix's history, its global success, and its challenges in the Indian market. The chapter highlights the significant market share held by Hotstar and Netflix's relatively small presence. This sets the stage for the analysis of strategic options to improve Netflix's standing in India.
The "Country Overview" chapter delves into the specifics of the Indian market, exploring factors relevant to the streaming industry. It analyzes the market size, demographics, and internet penetration. The chapter provides insights into the specific customer preferences and behaviors in India, contributing to the understanding of Netflix's challenges and opportunities.
The "Industry analysis" chapter offers a comprehensive overview of the Indian video streaming market, including an analysis of key competitors, their strategies, and the overall competitive landscape. This section also delves into the consumer preferences for streaming content, providing further context for Netflix's strategic decision-making.
Schlüsselwörter (Keywords)
This case study focuses on the strategic analysis of Netflix in the Indian market, exploring key themes of international expansion, competitive strategy, consumer preferences, and market adaptation. The case utilizes frameworks like vertical integration, market penetration, and acquisition strategies, highlighting the complexities of navigating a rapidly evolving and competitive landscape. The analysis draws from research on the Indian video streaming market and utilizes data related to market share, user behavior, and consumer preferences to understand the dynamics of this specific industry.
- Quote paper
- Gabriel Socha (Author), 2020, Strategic Analysis of Netflix in India. Possible Strategies and Recommendations, Munich, GRIN Verlag, https://www.grin.com/document/908830
