MNG3702 ASSIGNMENT 2
SEMESTER 2 - 2023
UNIQUE NUMBER: 726520
DUE DATE: 15 SEPTEMBER 2023
,MNG3702 ASSIGNMENT 2
UNIQUE NUMBER: 726520
CLOSING DATE: 15 SEPTEMBER 2023
MARKS:
INTRODUCTION:
In the fast-evolving landscape of the entertainment industry, Netflix has emerged as a
formidable player, setting new standards and revolutionizing how we consume content. The
questions below delve into a comprehensive analysis of Netflix's strategic journey, focusing
on various facets of its strategy formulation, implementation, and the challenges it faces.
Through a multi-dimensional approach, we will explore how Netflix has successfully
transformed its business model, managed change, gauged its absorptive capacity, engaged
with stakeholders, evaluated its organizational culture, and identified external strategic
risks.
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,QUESTION 1
The Netflix case presents us with several examples of strategy formulation and
implementation.
1.1 The first principle of strategy implementation is to translate the strategy of a business
to operational terms. One tool that can be used for this purpose is a strategic map.
Draw a strategic map for Netflix for 1998 when the company changed its pay-for-use
model into a subscription model which offered a subscription service through the
internet. In your answer, you need to make use of the elements of the Balanced
Scorecard (BSC).
Creating a strategic map for Netflix in 1998, when it transitioned from a pay-for-use model
to a subscription model with internet-based services, requires considering the elements of
the Balanced Scorecard (BSC).
The BSC typically includes four perspectives: Financial, Customer, Internal Processes, and
Learning & Growth. Here's a strategic map for Netflix during this period, taking into account
these perspectives:
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, Financial Perspective:
Objective: Achieve sustainable revenue growth and profitability.
Measure: Increase in subscription revenue.
Initiatives: Expand the subscription-based model to attract more
customers.
Measure: Reduction in customer acquisition costs.
Initiatives: Optimize marketing and promotion strategies to reduce
acquisition expenses.
Measure: Profit margins from subscription services.
Initiatives: Improve content licensing deals and cost management to
increase profitability.
Customer Perspective:
Objective: Enhance customer satisfaction and loyalty through personalized content.
Measure: Customer satisfaction surveys.
Initiatives: Regularly gather feedback from customers and make
improvements based on their preferences.
Measure: Customer retention rates.
Initiatives: Implement strategies to retain existing customers, such as
offering a wide variety of content.
Measure: Personalization and recommendation engine effectiveness.
Initiatives: Invest in advanced recommendation algorithms to provide
personalized content suggestions.
Internal Processes Perspective:
Objective: Optimize content acquisition and delivery processes.
Measure: Speed of content delivery.
Initiatives: Upgrade content delivery infrastructure and network to
ensure faster streaming.
Measure: Content acquisition costs.
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