Netflix - India entry stratgey - Case Study by MIT Sloan
Instructor: MIT Sloan
Validity Period: Lifetime
Set in April 2020, the case chronicles the evolution of Netflix from renting DVDs by mail to the world's leading streaming video on demand (SVOD) provider. It explores Netflix’s distinctive strategy and culture, which promoted independent decision-making, agility, and innovation, and were central to the company's ability to seize a succession of growth opportunities. At the turn of the decade, entertainment firms and cable networks in the U.S. began to fight back, consolidating media properties, ending licensing contracts with Netflix, and launching competing SVOD services. As competition intensified, Netflix set its sight on India, which it viewed as the source of the next 100 million subscribers. But, to win in the crowded and price-sensitive Indian market, Netflix needed to revisit its past strategic choices, such as its premium pricing policy, avoiding live-entertainment, never including advertisements in its programming, and growing organically.
Competing on Agility: Netflix has competed against competitors with more resources including cash, IP, and distribution assets and succeeded through agility, spotting and seizing growth opportunities more quickly and effectively than its rivals.
Corporate Culture: Netflix’s corporate culture, how it plays out in action, and includes data on how well the company lives up to its stated values
Market Entry: How Netflix can adapt to the needs of the Indian market and differentiate itself in a crowded field without straying too far from its global strategy.
Funding Growth: Netflix has relied heavily on debt to fund its investment in content, but is that sustainable? Could competitors use their vastly superior financial resources to “outlast” Netflix in the SVOD wars?
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