Strategic Management: Netflix Project

Strategic positioning

Action Plan

Area

L-T Obj.

Grand strategies

S-T Obj.

Functional tactic

Time frame

Responsibility

1

Strategic positioning is the positioning of an organization (unit) in the future, while taking into account the changing environment, plus the systematic realization of that positioning.

The strategic positioning of an organization includes the devising of the desired future position of the organization on the basis of present and foreseeable developments, and the making of plans to realize that positioning.

The strategic positioning method is derived from the business world. The method is aimed at ensuring the continuity of the organization. The strategy determines the contents and the character of the organization's activities.

Terms, such as survival, legitimacy, market positioning, relationship with environment and choice for a certain work area, come up in this context.

2-3 years

Subjects which have been developed reasonably well in literature on strategic management include: information collection techniques, analysis techniques and planning schemes.

2

Product plan, selection of products or services, determination of their quality, effect of a product (result for customer).

Marketing plan, aimed at marketing mix: product policy, promotion policy, distribution policy and price policy (cost price/ market price/ competition price?).

Production plan, choice of location, choice of equipment and of the production process, production standards, layout. Production planning, production management, stock control, quality control, cost control, maintenance.

Research plan, technological innovation or product modification.

3-7

years

On the basis of the analysis of internal and external critical factors - so, on basis of the estimated chances of seizing opportunities and meeting threats - the positioning will be determined..

3

Another method is the Product/Market Matrix. Questions raised with this method are: Can you, departing from the existing product range, think of new applications (markets)?

Once such a choice has been made, it should be studied what strategy is appropriate to realize that choice of position. In literature rough strategies are indicated, such as stabilization, growth, shrinking and turnaround.

The organization can probably indicate much more specifically and accurately what strategy must be opted for. Growth in a certain direction, orientation towards a certain market, etc.

Public Relations plan, both internal (mission, propagation of business objectives, motivation of staff) and external.

5-10

years

It would be quite nice to make a very specific positioning choice: we aim at becoming an organization which ..... (a description follows, by what the position choice is characterized, in terms of products, customers and image).

Grand Strategies

Due to increasing buyer demand, online movie renting is currently in one of the fastest growing markets. An attractive feature in the online movie industry is the possibility for newcomers to develop strong competitive advantage over rivals due to a strong lead of customers, revenue, and brand recognition because there are few existing competitors. Barriers to entry are low which gives the industry an appeal to new entrants. The industry has many avenues to take to create innovative means to attract new subscribers.

Short-Term Objectives

The vision of Netflix is to change the way people access and view the movies they love. Implementation of current strategies will help Netflix reach their goal and guarantee the accomplishment of their vision. A company's strategy is management's game plan for ...