The foreign markets of Netflix has expanded into the United Kingdom and Ireland following the
recent posting of staggering subscriber growth and healthy profits, also Netflix reported a U.S.
subscriber decline. The basic view is that there's such a big opportunity, as broadband grows that
it's smart in the long term to make investments in the U.K. and Ireland. Virtually all subscribers
now are entitled to unlimited hours of streaming media at no additional cost.
The major business areas that Netflix are dealing in are renting DVDs online and the stock
market. Netflix is a subscription-based movie and television show rental service that offers
media to subscribers via Internet streaming and via US mail. The largely emphasized is the
renting of DVDs online, the idea of renting DVDs online and delivering them through the mail
devastated traditional video stores such as Blockbuster Inc. Its transition into an online-video
company, starting in 2007, solidified that future-thinking reputation. It also raised concerns in
Hollywood that Netflix could undercut the traditional television business.
That reputation has taken a massive hit in the wake of two customer-infuriating decisions. 60% price hike and a
since-aborted plan to separate the DVD-rental service into a separate business. The company lost
800,000 subscribers in the third quarter, which it attributed largely to the price increase. Netflix
must struggle to repair the damage; at the same time it must spend heavily to line up online video
content to counter well-financed competitors such as Amazon.com. Netflix also projected that it
will begin losing money for a few quarters starting in the first period, because of costs associated
with an expansion in the United Kingdom and Ireland
Internationalization would really fit in the streaming business thus increasing the connectivity
and interdependence of the world’s market and business. as economies become more connected
to other economies, they have increased opportunity but also increased competition . Thus, as
globalization becomes a more and more common feature of world economies, powerful pro-
globalization and anti-globalization lobbies have arisen. Therefore Netflix, will faces increasing
competition from companies such as Amazon.com Inc., which has been spending heavily to
acquire new content for online viewing.
Netflix cannot afford to delay its internationalization strategies and therefore it needs to
concomitantly strategize on moving abroad and attending to its domestic alignment. At the
same time, the recognition that the company's DVD service may have contributed to a decline in
DVD sales, and regarding the industry's willingness to make special deals with Netflix in the
future.
Strategic planning is essential where it determines the direction, and making decisions on
allocating its resources to pursue this strategy. In order to determine the direction of the
organization, it is necessary to understand its current position and the possible avenues through
which it can pursue a particular course of action.
While strategic planning may be used to effectively plot a company's longer-term direction, one cannot use it to reliably forecast how the market will evolve and what issues will surface in the immediate future. Therefore, strategic innovation and tinkering with the "strategic plan" have to be a cornerstone strategy for an
organization to survive the turbulent business climate I would recommend that people stream movies over a broadband connection with a speed of at least 1.5 megabits per second, and that people use an Internet connection of at least 3 megabits per second to get better-looking video on par with a DVD.