Achieve Growth Success Business Operations â€Myassignmenthelp.Com

Question: Discuss About The Achieve Growth Success Business Operations? Answer: Introducation The current time in the world is an age of strong competition where the effective strategies are important to achieve growth and success in the business operations. To compete at the global level, there is the need to adopt innovative strategies by the companies to carry out open management so that all the restrictions and barriers can be removed. The technology, marketing manufacturing, human resources and design departments of the company are getting more competitive resources than ever before. This report focuses on the on the role of the strategic management in the business operations of a company. For the discussion, the company Netflix has taken. In present time, the company is very famous in the market for its innovative strategies. The company Netflix has set up a successful example in the market in terms of innovative strategies. The strategy of the company is mainly focused on the continuous efforts towards internationalization. The aim of this report is to identify the the oretical concepts of the strategic management and evaluate the impact of the theoretical concepts of the strategic management on the business operations of the chosen company (Sherman, 2012). Institutional background The company Netflix was established in 1997 by Reed Hasting in California. In the starting of business, the company only provided online movies on rental basis but after launching the subscription services. The company also started to provide the facility of purchased rental movies to its consumers through the US postal services. In the upcoming years, the company improved its database and in current time, it is now offering the services of many DVDs with the different title. Now, the company has large customers base with 4.4 million customers. Along with this, the company did partnership with many internet connected devices. With this partnership, the customers using the services of Netflix are also able to avail the services of company on the iPhone, iPad, laptops and other internet connected devices. The company y is operating in many countries i.e. USA, UK, Ireland, Canada, Carrabin and Latin America along with 23 million members in these countries. The strategy of Netflix is to enhance the subscription of the video streaming at the global level. To achieve this goal, the company is focused on providing good customers experience by expanding the video streaming services among the consumers (Ozer, 2011). Theoretical concept of strategic management Strategic management For identifying the theoretical concept of the strategic management, it is important to understand the strategic management first. Strategic management is about identifying and describing about the effective strategies that can be carried by managers within the organization to achieve high level of performance and competitive advantage in the market. The strategic management within an organization can be described as the collection of many actions and decisions by which managers can improve the organizations performance in the operating market. Manager in the organization should have proper knowledge of the competitive environment to take right decision. So, strategic management is the continuous and on-going process that analyzes and controls the overall business operations in the market in which the organization is involved. Along with this, strategic management is helpful in evaluating the competitors and the set objectives and strategies to meet all the requirements of the custom ers. Strategic management concepts In the highly competitive environment of business, the forecast-based planning methods or budget-oriented planning methods are not appropriate for the organizations to survive. The company must engaged in the strategic management concepts for defining and understanding the external and internal business environment to adopt effective strategy for the business. The concepts of strategic management are helpful in making adjustments to keep the business on track. The three basic strategic management concepts for the business are strategic intent, environmental scanning, and strategy formulation. Strategic intent- This concept of the strategic management is focused on the various corporate challenges and opportunities along with the long term objectives within the organization. The strategic intent provides significant direction to the company along with the sense of direction which can be communicated with the employees. Basically, it focuses on the upcoming opportunities for the business. Strategic intent provides a clear picture of the actions to grasp the opportunities in the market. It is helpful for the company to indentifying and focusing on the opportunities for the better business performance. So, it is basically impacting the organizations resources and core competencies to achieve the set goals in the competitive business environment (Hitt et al, 2009). Environmental scan- In the environmental scan concept in the strategic management is very crucial concept to analyze the internal and external business situations for the various business activities. The environmental scan of an organization includes following factors: Analysis of the organization (Internal environment) Analysis of industry (micro environment) Analysis of external macro environment (PEST analysis) Further, the internal environment analysis includes the strengths and weaknesses of the organization along with the opportunities and threats for the business operations. This can be done by the SWOT analysis of the organization. Along with this, the industry analysis can be done by using Porters five forces framework. This framework is helpful in evaluating the suppliers, entry barriers, customers, and industry rivalry and substitute products. Strategy formulation- The strategy formulation concept is focused on developing of long-term plans for the efficient management of the business opportunities and threats with the analysis of firms strengths and weaknesses. The strategy formulation for an organization includes corporate mission, set objectives and developing strategy for the business operations. Corporate mission: Mission of the organization is basically an aim or the reason for the existence of the organization. It reveals what the organization is providing to the community by the products and services. Objectives: Objectives are the crucial part of the business as those are the end results of planned activities. Objectives provide the timeline to accomplish them if possible. By achieving the business objectives, the organization can be able to fulfill the corporate mission (Schilling, 2010). Strategies: This is basically a complex plan to achieve the desired position of the organization in the operating market. So, effective strategies are required to give the posture to the organization in a future period of time (Bainbridge, 2011). Application an d Evaluation of the concept Strategic Intent There are many changing factors that creates competitive business environment for the companies. The factors include changing lifestyle of the customers, cost and efficiency changes, convenience, and various options available for the customers. These factors create opportunities for the company to grow in the market. Although Netflix has good position in the market but there are some opportunities to grow in the market. The company is able to attract customers because of unique and innovative strategies (Lotz, 2017). Although the company is facing strong competition in the market but with the innovative business model, company has ability to improve its customer base. On the basis of these factors, it is observed that within next 3 to 5 years, Netflix will get more success. The company will get opportunity to improve the customer base by 75 million non-US subscribers along with $7billion in revenue in upcoming years (Heisler, 2016). Environmental scan PEST analysis Like other companies, it is important to analyze the environmental factors impacting Netflixs business operations. For this manner, PEST analysis can be done for the company that includes political, economic, social and technological elements. Changes in any elements in this area can significantly impact on the business as this represents the large segments to which the company is offering services. Political factors- The company Netflix can be affected by changing regulations and laws related to the copyrights of some content such as television and movie shows that the company is presenting to the customers. The changed law related to copyright might impact the ability of the company to provide the content to the consumers. Along with this, this can also impact the business of the company significantly as the content might have large customer base. Economic factors- For the company Netflix, it is important to maintain the competitive advantage in the operating market as it is essential to have price strategy to deal with the competitors in the market. The business of the company depends upon the disposable income of the customers in the market. If the growth of the economic rate of the market is slow than the purchasing power of the customers will be impacted negatively. So, the business operations of Netflix might be affected by the purchasing power of the customers (Sadq, 2013). Social factors- The business of the Netflix depends upon the attractiveness of the movies among the consumers in the sector of target market. As the average age of the customers of Netflix are growing older and their expenditures on the movies and videos turn out to be lesser. This factor might affect the business of Netflix adversely. Technological factors- The core business operations of the company are internet based so, the company is operating in the developed technology sector. But for this manner, company has to face some extra online expenditure. The market share of Netflix is facing some challenges in the market due to the entry of new companies in the industry as there is the lower barriers to entry in the streaming the content. The changes in the technology such as internet rates and entry of competitors in the industry can affect the business of the company. So, there is the need of continuous modernization in the business model of Netflix to sustain its market share (Zambelli, 2013). Porters five forces Competitive rivalry- There is the strong competition and rivalry among the companies of this industry. There are some established companies in this industry such as Amazon, Redbox and Blockbuster. Due to the competition, the level of marketing cost and advertisements have also increased in each company. Netflix has also spent more than $200during last few years in the advertising. This includes various marketing deals and online advertisements and increased its revenue by 14%. Threats of substitute- It is well known that there are digital cables in every home that is necessary for people in current time. So, many customers have the collection of films and movies from the cable network. Along with this, there are the on demand services provided by the cable television providers that might be the strong substitute for Netflix (Tryon, 2013). If the cable service providers increase the movie stock list having similar title collection than it will going to difficult for Netflix to attract potential customers in the market. So, it is essential for the company to focus on changing the technology continuously to maintain its success in the industry. New entrants- Company Netflix have to maintain its popularity of e-commerce by improving and enhancing the inventory of the stream movies by providing HD quality movies. If this attempt of the company is successful, more suitable earnings can be done by the company by renting of movies on demand. This is important because there are many low-priced new entrants due to low entry barriers that providing streaming content and can become the possible distributors in the market. Bargaining power of suppliers- Company Netflix is highly dependent on the studios for the streaming content which is required to provide the customers. In present time, Netflix is not developing own content. So, if the suppliers stop providing their content to Netflix then it might affect the business model of the company. So, by this fact, it can be said that suppliers have high level if bargaining power with Netflix for content acquirement. Bargaining power of buyers- The movie rental industry is very active industry. At the time of slower economic growth rate where the buyers have less amount of income, their ability to expend in this industry will be reduced. On the other hand, at the time of wealthy economy, customers can spend more money in this industry. At that time, customers can have high bargaining power for the movies as they can user their money on the alternative products and services (Napoli, 2011). SWOT analysis Strengths- The key strength of the Netflix is its business model. The company has online flexible infrastructure and interface by which the company is able control its operating expenditures with raising its subscription. The position of the company in the industry can also be improved when the movie downloads can be based on the choice of the subscribers. Further, the company is able to gain strong competitive advantage by providing low prices, large selection, free shipping, and no late fee policy. By these practices, Netflix has become a household brand among the customers (Enkins, Ford Green, 2013). Weakness- Despite of various success factors, Netflix has not expanded its business in few countries and the company is depending only on few markets. Along with this, the customers have to wait for one or two days to get the movies. Next weakness of Netflix is that the company has small financial resources as compared to its competitors i.e. Blockbuster. Further, the success and growth of the company depends upon high average revenue per User, low acquisition cost and high purchasing capacity of the customers. These factors might be difficult to control due to the lack of transition cost in the video streaming industry. Netflix can enjoy the opportunity of expansion of movie download ability. Continuous international expansion of DVD and the acceptance of e-commerce by the customers can provide high level of opportunity to Netflix in industry. Along with this, digital, distribution of the video content is progressing continuously and the company is providing the connection from DVD system to digital streaming. It can be an opportunity for the company to improve its position in the digital streaming as compared to other companies as Netflix has brand name in terms of Electronic Commerce (Liu, 2017). DVD video streaming industry is highly competitive industry as the competitors are offering services on cheaper rates as compared to Netflix. Further, the video rental industry is a challenging industry also as the industry is highly developed because of the technological innovations continuously. The products, prices and the preferences of the customers are the factors of speedy change and create irregular and changeable markets where the competitors can be a big threat for Netflix. Strategy formulation For the company Netflix, strategy formulation concept is as follows: Mission statement- Mission of Netflix is to build the success by providing the most expansive selection of DVDs with the fast and free delivery. The mission statement of the company outlines the services and offerings that make Netflix unique. The company has well defined mission statement that describes the organizational functions effectively (Adhikari et al, 2012). Vision of Netflix is to change the way of access and view the movies for the customers. The vision statement of the company is respectable and fit for the organizational activities of the companies. The vision statement of the company is purpose-driven along with highlighting unique competencies of Netflix. Corporate objectives- Company Netflix has business objectives to maintain proper growth and success in the video entertainment industry. The corporate objectives of Netflix are: Continuous growth for the subscribers, Consistent growth in the revenue, Achieve leadership position in terms of online movie subscription, and Attracting and retraining broad range of customers (Nocera, 2016). The key strategy of company Netflix is to focus on the development with the large subscription of streaming videos and DVD content by the mail. The company has adopted differentiation strategy and customer intimacy strategy along with various innovations to make the business simple and easy for the customers. Netflix is offering innovative platform to subscribers and delivery platform at very affordable prices to make convenient for the customers (Forbs, 2017). The strategy of Netflix is considered as highly effective strategy as it is helpful for the company to get success and improve best resources to gain large customer base. By adopting differentiation strategy, Netflix is now able offer best and quality services to the customers. With the strategy, company is famous the consumers in the video streaming strategy as the leading brand of home entertainment (Hompson, Arthur, 2013). Reflection Netflix has good position among the customers in the market. The company got this strong position due to unique business strategies as compared to the competitors in the market. The strategy of Netflix is to provide unique quality internet movie services to its customers at the affordable prices. The objective of the company is to offer growing subscriber base. By adopting this strategy, Netflix is able to maintain the cost associated with the various business operations. So, the company is enjoying the competitive advantage over its competitors. Along with this, the success of the company depends upon its services provided to the consumers. The company has divided the consumer market as it knows that how and where to operate in the market to compete with the competitors. There are some recommendations for Netflix to improve the strategic management in the market (Walker, 2016). Recommendations There are some recommendations for Netflix. By adopting theses recommendations, the company will be able to improve its strategic management within various business operations. For the company Netflix, strategic recommendations are as follows: Netflix should focus on improving and expanding brand loyalty in the market. For this manner, company should create more personal Brand, customers and value for the customers. Company should collaborate with various followers to establish a mutually beneficial relationships with the, company should allow the followers to share their viewpoints. Company should focus on the community participation to collect the valuable suggestions of the customers and should allow them for more interaction. and Company should focus on sharing the content to become the valuable member. It should give an effective reason to the customers to come back for availing the services. References Adhikari, V. K., Guo, Y., Hao, F., Varvello, M., Hilt, V., Steiner, M., Zhang, Z. L., (2012). Unreeling Netflix: Understanding and improving multi-CDN movie delivery. INFOCOM, pp. 1620-1628 Bainbridge, W., (2011). Leadership in science and technology: A reference handbook. US: SAGE Publications. Enkins, H., Ford, S., Green, J., (2013). Spreadable media: Creating value and meaning in a networked culture. New York: New York University Press Forbs, (2017). A Closer Look At Netflix's Content Strategy. Retrieved on 23rd August 2017 from https://www.forbes.com/sites/greatspeculations/2017/04/20/a-closer-look-at-netflixs-content-strategy/#2f6d1dd21fc5 Heisler, Y., (2016). The future of Netflix. Retrieved on 23rd August 2017 from https://bgr.com/2016/09/22/netflix-originals-content-library-50/ Hitt, M. A., Ireland, D. R., Hoskisson, R. E., Rowe, G. W., Sheppard, J. P. (2009). Strategic Management. Toronto: Nelson Education Ltd Hompson, Arthur A., (2013). Netflixs Business Model and Strategy in Renting Movies and TV Episodes. Essentials Of Strategic Management: The Quest For Competitive Advantage. NY: McGraw-Hill Higher Education Liu, E., (2017). Netflix: Taking Stock of Its Original Strategy. Retrieved on 23rd August 2017 from https://www.barrons.com/articles/netflix-taking-stock-of-its-original-strategy-1496417803 Lotz, A., (2017). The unique strategy Netflix deployed to reach 90 mn worldwide subscribers. 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Retrieved on 23rd August 2017 from https://www.cbsnews.com/news/why-netflix-got-its-strategy-right/ Tryon, C., (2013). On-demand culture: Digital delivery and the future of movies. New Brunswick. N.J: Rutgers University Press Walker, N., (2016). The rise of Netflix. Retrieved on 23rd August 2017 from https://www.businessreviewusa.com/leadership/5478/The-rise-of-Netflix Zambelli, A., (2013). A history of media streaming and the future of connected TV. Retrieved on 23rd August 2017 from https://www.theguardian.com/media-network/media-network-blog/2013/mar/01/history-streaming-future-connected-tv