This case analysis intends to encourage you to conduct an analysis of an interna

Question

This case analysis intends to encourage you to conduct an analysis of an international marketing environment for Netflix, the California based Internet streaming-video company. After its launching of Internet streaming-video in 2007, Netflix first moved into Canada in September 2010. Then the company expanded into the Latin America in 2011 and entered Europe in 2012. After rolling into Germany, France, Austria, Switzerland, Belgium and Luxembourg in 2014, Netflix announced its launch in Australia and New Zealand in March 2015. It continued to expand into other countries in Asia-Pacific region such as Indonesia and South Korea. In this case, you are going to evaluate the potential challenges and opportunities Netflix faces when entering the Asian market.

Identify and explain key international environmental factors (including the current technological, social and cultural, political, legal, financial, economic and infrastructural, and competitive environment) that affect Netflix’s expansion into the Asia-pacific region.

Pick one country in the Asia-pacific region and evaluate if Netflix operates in this country successfully giving the challenges and opportunities Netflix faces in this country.

Discuss the lessons you learned from Netflix’s global expansion. What suggestions would you offer to Netflix’s marketing executives regarding its Asian-Pacific expansion?

Explanation / Answer

The company has been quite successful in its expansion in Europe and Australia. But the company will have to overcome certain barriers when they are entering Asia Pacific region. The first barrier would be the social and cultural barrier. The content on Netflix is explicit and some contain some adult content as well. The countries in this region are a little conservative and they follow their religion very strictly. So the company needs to make sure that they have the right content when they enter the market. Not all the countries in this region have an excellent internet connectivity and have a mobile-friendly crowd. They need to keep this in mind and look for a way to attract the customers. The middle-class population is growing in the Asia Pacific and the spending behavior of the people is improving so the company will not face the infrastructure related problems. The political and legal problems will not be there as well if the content is customized according to the needs of the local market.

Let us consider India as an example to study the market expansion and operation. India is a fastest growing economy in the world and the country is seeing a drastic change in infrastructure and technology industry. The Indian audience is more open to the foreign content and they have started appreciating good work. The explicit content is not an issue anymore in the country and the government does not put very strict regulations. The challenges faced by Netflix in India would be the still growing internet connectivity and they are not able to reach their target audience in the second-tier cities with their marketing campaigns. The company is facing a tough competition from the players like Amazon Prime and Hotstar in the Indian market. The opportunities company have in the market are the excellent market share and they have the first mover advantage as well. The local Indian content creators are willing to collaborate with the company to make more shows. The company also the support of top film stars in the country who can influence millions of people.

I would suggest the marketing team to customize the market content and not follow a universal strategy for the Asia-Pacific expansion. Identify what people like in each market and create the strategy based on that to keep them engaged and interested in the platform. Create promotional offers in certain counties where the spending behavior of the people in just average. Work with the local celebrities and use their influence to attract the people from both rural and urban areas.

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