Strategic Management Case Study Sample

Introduction Of Strategic Management

Strategic management is the procedure of formulating and implementing long-term goals and initiatives taken by a company's top management. It involves assessing the company's internal and external environment, developing strategies, setting objectives, and allocating resources to accomplish those objectives. These objectives provide an apparent direction and reason for the organization and serve as a basis for developing strategies (Mak and Chang, 2019). These strategies involve identifying various options and evaluating their prospective for accomplishment. Strategic options may comprise diversification, market expansion, cost leadership, differentiation, and more. The development and performance of the implemented strategies are incessantly monitored and evaluated (Fuertes, et. al. 2020). This helps in identifying deviations from the intended course and taking remedial actions when necessary. Key performance indicators (KPIs) are often used to compute development and ensure that the strategies are on track.

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The report discusses a global stream entertainment platform, Netflix that offers a wide variety of TV shows, movies, documentaries, and innovative content to its subscribers. It was founded in 1997 by Reed Hastings and Marc Randolph and has ever since grown to become the leading provider of online streaming services worldwide. The brand provides a vast collection of content, including TV series, movies, documentaries, stand-up specials, and more. They have revolutionized the way people get through entertainment by providing measure, on-demand admission to vast records of content.

Figure 1: Netflix

(Source: Namish Agarwal, 2022)

What external environmental factors have influenced the organisation's strategic plan?

External environmental factors refer to the circumstances, influences, and forces that exist outside an association and have the potential to have an effect on its operations, strategies, and accomplishments. These factors are usually beyond the control of the organization but can considerably impact its performance and decision-making process. The following are external factors which influence the strategic plan of the company:

• Changing performance habits and technology:the rise of digital technology and the internet has altered the way the community consume entertainment. The shift from usual cable TV to online streaming platforms like Netflix has been determined by changing screening habits and preferences (Hunger, 2020). There is rising accessibility of high-speed internet and the propagation of mobile devices.
• Competitor landscape:the online streaming industry has become extremely competitive, with the entry of major players such as Disney+, Hulu, Amazon Prime Video, and others. The company's strategic plan has been subjective to the need to distinguish itself and stay in front of the competition. This has led to an improved focus on producing high-quality unique content, securing restricted distribution rights, and investing in technology and user knowledge enhancement (Teece, 2019).
• Content acquisition and licensing: The availability and cost of content licensing have a major impact on a company's strategic plan. As the demand for streaming content has full-grown, content creators and studios have become more discriminatory and aggressive in licensing their content (Ketchen Jr and Craighead, 2020). The company has had to adapt its approach to secure rights to well-liked content, invest in producing original indoctrination, and strike deals with content creators to preserve an appealing content library.
• Regulatory environment: Regulations related to licensing, content distribution, copyright, and data privacy have the prospective to impact the company's operations and outline its strategic decisions.
• Global expansion opportunities and challenges: The company'sstrategic plan has been profoundly influenced by its global development efforts. Factors such as local content preferences, cultural differences, regulatory frameworks, and communications accessibility impact a company's strategic decisions regarding pricing strategies, content localization, and market entry (Nani and Safitri, 2021).
• Economic factors: this includes disposable income levels, customer spending patterns, and money fluctuations, which can control the company's strategic plan. The economic downturn may have an effect on consumer enthusiasm to pay for stream services while encouraging economic conditions that can drive expansion and investment opportunities.
• Social and cultural trends: this includes a growing demand for varied representation and comprehensive content, which can impact a company's strategic decisions. The brand response to preferences, societal shifts, and emerging trends plays a role in determining its content acquisition, manufacture, and marketing strategies.

It is significant to note that while these external factors have prejudiced the company's strategic plan, the corporation has also been positive in shaping the industry and driving changes through its innovation and customer-centric approach.

What internal environmental factors have influenced the organisation's strategic plan?

Internal environmental factors, also known as internal factors, are the circumstances, capital, and character that exist within an association and control its operations, culture, and performance. An internal factor which influences the company is as follows:

• Core competencies: The company's strategic plan has been influenced by its core competencies, which comprise its widespread data analytics capabilities, recommendation algorithms, and expertise in content delivery and streaming expertise. These competencies have permitted brands to personalize user knowledge, optimize content recommendations, and give a faultless stream service, giving it a competitive edge (George, al. 2019).
• Organizational culture: the company has an exclusive organizational culture that fosters innovation, adventuresome, and a data-driven approach. The corporation encourages workers to take calculated risks, trial with new ideas, and learn from failures. This culture has prejudiced the strategic plan by promoting a focus on disorderly technologies, content testing, and an enthusiasm to adapt rapidly to varying market dynamics.
• Human resources: The talent and expertise of the company's personnel have influenced the organization's strategic plan. Retaining and hiring talented persons in areas such as content production, acquisition, technology, and data analytics have been critical to the company's success. The corporation invests in attracting top talent, developing a creative and mutual work environment, and ensuring the right skills are in place to execute strategic initiatives.
• Technology and infrastructure:The company's strategic plan has been formed by its technological capabilities and communications. The company invests greatly in building and maintaining content delivery networks, robust streaming platforms, and data centres. This infrastructure allows the company to provide high-class streaming experiences, handle large-scale content distribution, and hold up its global development efforts.
• Financial resources: Netflix's financial position and resources have influenced its strategic plan. The company's ability to invest in content acquisition, production, technology development, and marketing has been crucial in maintaining a competitive advantage (Namugenyi, al. 2019). Financial factors such as profitability, revenue growth, and cash flow have subjective strategic decisions related to content pricing strategies, investment, and market expansion.
• Brand reputation and consumer loyalty: The company'sstrong brand reputation and consumer loyalty have prejudiced its strategic plan. The firm's focus on delivering high-class user knowledge, a vast collection of content and unique programming has contributed to the structure of a loyal customer base. A company's strategic decisions are often ambitious with the goal of maintaining and enhancing its brand reputation and developing consumer loyalty.
• Management and leadership: leadership and management decisions within the brand have influenced the company's strategic plan. The decision-making processes, vision, and strategic priorities set by the top management team have played a critical role in shaping the brand's direction.

These internal environmental factors have contributed to the company's ability to innovate, acclimatize to market changes, and continue its position as a foremost streaming service contributor (Falqueto, et. al. 2020). The organization's internal strength and ability have guided its strategic planning and helped it navigate the rapidly evolving streaming landscape.

Analyse the organisation's strategic plan in illumination of these internal and external environmental factors

Evaluate the efficiency of the organisation's strategic plan in achieving its objectives

Evaluating the efficiency of a brand's strategic plan in achieving its objectives requires an inclusive assessment of the firm's performance and how well it aligns with its proposed goals. It is insignificant to note that a company's strategic plan is dynamic, and its efficiency may vary over time.

• Subscriber growth: The company'sstrategic plan has been winning in driving major subscriber enlargement over the years. The corporation has constantly expanded its subscriber base worldwide, with millions of subscribers in a variety of markets. The focus on as long as a varied and tempting content library, including original programming, has played a critical role in attracting and retaining subscribers.
• Original content strategy: The company'sstrategic plan has been very effective in raising and promoting unique content. The firm's investment in producing and acquiring elite original programming has garnered critical approval and spectator attention. Shows like "Wednesday," "Stranger Things," and "Ozark" have achieved both commercial achievement and cultural impact, contributing to Netflix's brand acknowledgement and subscriber constancy.
• Market leadership: The company's strategic plan has situated the corporation as a leader in the streaming industry. It has effectively established itself as a leading player, setting trends and determining the way people devour entertainment (Kabeyi, 2019). The firm's early focus on streaming, data-driven recommendations, and technology improvement has given it a competitive benefit and contributes to its market leadership position.
• International expansion: The company's strategic plan has facilitated successful international growth efforts. The brand has forcefully entered new markets, adapting its content contributions to suit local preferences and investing in restricted marketing and customer support. This expansion has considerably contributed to the company's subscriber growth and revenue streams.
• Financial performance:The company's strategic plan has delivered strong financial performance. The corporation has constantly reported revenue growth, demonstrating the efficiency of its strategies in attracting and retaining paying subscribers. The ability to generate substantial revenue has supported the firm's investments in original content, technology communications, and international expansion.
• Challenges and competition: While the company's strategic plan has been mainly effective, it faces challenges and increasing competition in the streaming industry. The entry of new players, such as Amazon Prime Video and Disney+, and the appearance of other regional and niche stream services have intensified rivalry (Hanggraeni, al. 2019). The brand needs to repeatedly adapt its strategies and distinguish itself to uphold its competitive edge.

Netflix's strategic plan has been effective in achieving its objectives. The brand has established strong subscriber growth, recognized market leadership, and delivered convincing original content. However, ongoing evaluation and variation to changing market dynamics and evolving consumer preferences are crucial for a company to sustain its accomplishment in the highly competitive streaming industry.

Provide recommendations for improving the organisation's strategic plan in illumination of analysis

While Netflix has been booming in producing and acquiring unique content, it can further improve its strategic plan by diversifying its content collection to cater to a wider range of audience preferences. This could involve exploring partnerships with more worldwide content creators, increasing genres, and addressing niche markets to ensure a complete and comprehensive content offering. The company should prioritize ongoing innovation and technological advancements to keep up its competitive edge. This can involve investing in emerging technologies, such as augmented reality (AR) and virtual reality (VR), to improve the user experience and initiate new forms of immersive content. In addition, exploring new content formats, such as interactive storytelling, can help distinguish Netflix from competitors.

The company's data analytics capability provides a strong groundwork for personalization. To further get better the strategic plan, the business can process its algorithms to bring even more precise and relevant recommendations to subscribers. Investing in AI and machine learning technology can help the company understand user preferences at a grainy level and bring a highly tailored presentation experience. As the company expands into new international markets, it should strengthen its regional and restricted strategies. This includes not only localising content but also sympathetic and adapting to cultural nuance, preferences, and performance habits. Developing partnerships with district content creators, investing in local production, and leveraging local marketing and sharing channels can help the brand better attach with audiences in diverse regions. The company should strike a balance between unique programming and licensed content to provide varied audience preferences while organization costs. While original content has been a key driver of the company's achievement, continuing to protect licensing agreements for popular third-party content can further improve the content library and draw subscribers. Strategic content attainment and licensing decisions should believe in both superiority and cost-effectiveness (Brin and Nehme, 2019). The brand should adopt an incessant evaluation process to review the efficiency of its strategic plan. This involves monitoring audience feedback, market trends, and competitors' strategies to recognize areas for development and adaptation. Regularly updating and cleansing the strategic plan based on new insight will make sure that Netflix remains agile and receptive in the speedily developing streaming scenery.

Conclusion

Netflix's strategic plan has been effective in achieving its objectives and establishes the corporation as a leader in the streaming industry. The plan has productively positioned Netflix as a market leader, driven subscriber growth, and delivered strong financial performance. The association has leveraged its core competencies, which include data analytics and content delivery, to personalize user experience and provide a faultless streaming service. The strategic plan's significance on original content has been an important driver of the company's success, with highly praised shows capturing both commercial achievement and cultural impact. The company's international expansion efforts have enabled it to tap into new markets and adapt to local preferences, contributing to its subscriber development. However, the company faces challenges in a more competitive landscape, with the entry of new streaming players and developing viewer preferences. To improve its strategic plan, the brand should focus on diversifying its content collection, continuing to innovate, and enhancing personalization. Strengthening district and localized strategies, prominent the right balance between unique and qualified content, and developing customer engagement and preservation are key areas for development.

Constant adaptation, evaluation, and a customer-centric approach will be critical for the company to sustain its achievement and find the way to the rapidly evolving streaming industry. By implementing new technologies, refining content acquisition strategies, and staying adjusted to market trends, the company can continue to innovate and meet the varying demands of its worldwide audience.

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