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Netflix in India

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NETFLIX IN INDIA

Course: International Marketing

Submitted to : Prof . Hosakul

Date: Spring, 2018 February 27

By: Min Wai Kyaw

ID:4136509


ISSUE: Had failed to make an impact on the Indian Consumers.

SWOT

        A strength which Netflix has a decent advantage over other competitors would be the lack of commercials with unlimited viewing as well as adapting to the situation of India’s poor infrastructure by having a data-saving mode allows them to gain further opportunities for market share. Netflix can have further benefits in terms of internet penetration and a rise in mobile usage with the expected 83% OTT video content demand in 5years and 21% increase in HD & UHD video consumption in 2018. Most of the weakness that Netflix has in terms of lack of local content and not being able to have a first mover advantage will be solve over time by localising and adapting to the market itself. Threats for Netflix includes not being able to deal with piracy issues and low internet speed could become an obstacle that they will need to solve. Proper enforcement and restrictions could be done relating to pirated video contents.

VRIO

When VRIO is applied towards Netflix, it can be seen that the capability of being able to stream HD movies over the internet would be its greatest opportunities. This capability was valuable, rare and costly to imitate which added value towards the organisation. As a result, it allows the firm to exploit a resource in which it gives a competitive advantage when being compared with the other competitors in the market.

Porter’s 5 Forces

        Competitive rivalry was high as there are several competitors who’s already in the market hence Netflix couldn’t maximise the benefits of becoming a first mover. In this streaming market, customers have a high bargaining power and are very price sensitive since the income level of the people are low. The cost of switching to other video streaming options for consumer are low as close substitutes are easily available where local TV channels that have more local content is on the market. At the same time, the bargaining power of the supplier are relatively high too since Netflix will have to be very dependant and relies on being able to get certain shows and movies for its subscribers. Although, entering the streaming video on demand industry is still possible, but there wouldn’t be much newcomers since they are quite a handful of current existing providers. Even if there are newcomers, they might not be able to offer the hi-technology HD quality videos that Netflix is able to offer.

PEST Analysis

Political factors involve having a well-developed regulated tax system, along with flexible requirements for investment. Subsidiaries are often supported for business which will improve the infrastructural of India. The socio culture of India is complex with different languages, lifestyle that could vary according to the region as well as having different classes based on income and demographics. These structures will then vary flexibilities in terms of attitudes that will affect decisions and researches. With technological advancement in smartphones consumer is on the rise, there will be new operators coming in and is expected to have high connectivity that will solve internet connection problems.

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