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📊 Case Study: Netflix – Navigating a Dynamic Market

Background:

Netflix began as a DVD rental service in the late 1990s, targeting a niche market of tech-savvy consumers who preferred online ordering over traditional video stores. As broadband internet expanded, Netflix pivoted to streaming a move that transformed it into a mass-market giant.

Market Characteristics:

Mass Market: Netflix now serves a broad audience globally, offering diverse content across genres and languages.

Dynamic Market: The streaming industry is highly dynamic, with rapid technological changes and evolving consumer preferences.

Innovation: Netflix invests heavily in original content (e.g., Stranger Things, The Crown) to differentiate itself and retain subscribers.

Competition: Faces intense competition from Disney+, Amazon Prime Video, and Apple TV+, each vying for market share.

Risk vs. Uncertainty:

Risk: Investing in original content with uncertain returns.

Uncertainty: Regulatory changes, shifts in consumer behaviour, and global economic factors.

Market Metrics:

Market Size: Over 250 million subscribers worldwide.

Market Share: Dominant in the streaming sector but declining slightly due to new entrants.

Questions:

How does Netflix’s shift from DVD rentals to streaming illustrate the characteristics of a dynamic market? Explore how technological change and consumer behavior influenced Netflix’s strategic pivot.

In what ways does Netflix operate in a mass market, and how does this affect its marketing strategy? Consider its global reach, diverse content offerings, and use of data-driven personalization.

How has Netflix used innovation to maintain its competitive advantage in the streaming industry? Think about original content, recommendation algorithms, and international expansion.

What risks and uncertainties does Netflix face when investing in original series and films? Discuss financial risk, audience reception, and competition from other platforms.

How does intense competition from rivals like Disney+ and Amazon Prime Video influence Netflix’s pricing and product decisions? Evaluate how Netflix responds to market pressure through subscription tiers, content strategy, and partnerships.

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Marking scheme

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Which HR issue is most damaging long‑term: poor motivation or poor recruitment?

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Which HR issue is most damaging long‑term: poor motivation or poor recruitment?

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Training is always better than dismissal agree or disagree?