Netflix is now the dominant company in the entertainment rental market. Netflix started as a website where consumers were facilitated by renting DVDs online. DVDs were delivered to them via mail. At that time, it was giving competition to the TV industry. The direct competition was with physical rental locations. Netflix came up with on-demand shows. People could watch the shows whenever they wanted. Such a strategy made it superior over physical stores and television channels. Netflix started offering upfront contracts for creating an entire season. All of the seasons are uploaded at once. Allowing them to search for the content that consumers wish to watch facilitates them. The company has brought a drastic change in the entertainment rental industry. Consumers no more visit physical rental locations due to the facilities provided by Netflix.
1. Netflix’s competitive strategy is focus on offering on-demand shows. Consumers can watch whatever appeals to them. Netflix chose the right niche that has made its strategy so successful. Consumers are willing to pay Netflix that is offering new movies and latest TV shows. Such an idea proved to be innovative in the rental market. People make no more visits to physical stores due to facilities provided by Netflix. Yes, I agree that the strategy of Netflix is successful because more people are becoming regular and loyal customers of the company.
2. According to Hasting and McCord, Netflix’s Human Resource (HR) strategy has led the business to prosper (Lussier & Hendon, 50). The strategy created an environment of highly motivated individuals who were aware of the company’s goal. The employees understood the organization’s culture and out-performed to achieve the company’s goals. The HR strategy made the employees understand and prioritize the company’s interests.
3. Netflix’s HR policy has supported the firm’s strategy. The company recruited individuals who prioritized interests of the company. The high employee turnover reduces the performance of a business. Therefore, the HR department of Netflix employed the right talent. The company host parties and give benefits to raise the employee morale. Employees gave their honest opinions about their performance and colleagues. The company valued these evaluations and put efforts to improve its policies. The change in policies made its employees more determined. They knew that only their performance could help the company to achieve its targets .
4. The employee evaluation process at Netflix is different from other companies. The company carries out an informal evaluation process. Employees are asked to give their honest opinions about the company’s strategies and policies. The employees feel part of the organization where their voice could be heard by the upper management. The company takes into consideration their views and opinions on whether a specific policy should be continued or modified or stopped. The company avoids formal bureaucratic measures as they were not effective. The company allows active and open communication between the management and employees. Employees value these conversations as they feel that they have a platform to share their experiences and ideas. The self-assessment evaluation process makes the employee identify their strengths and weaknesses and improve them accordingly .
5. Netflix does not monitor its employees. However, it has established ‘high performance culture’, where every employee has to perform well. The formal performance reviews were stopped and then the company came up with informal 360–degree reviews. Employees were asked to give opinions about themselves and their colleagues. They were also asked to identify things that need to be continued or modified as per the certain policies .
6. Netflix provides incentives to its employees and customers evenly. Employees are rewarded with bonuses and other incentives. They have to meet the certain criteria to get the bonuses. Such incentives raise their morale and motivation that proves to be beneficial for the company as well. Consumers and employees are never neglected. Their needs are taken into consideration and strategies were modified accordingly. Consumers are entertained by latest seasons, movies, and other TV shows. The consumers do not have to wait to watch their favorite shows as they can watch them at any time.
Works Cited
Lussier, Robert N. and John R. Hendon. Human Resource Management: Functions, Applications, and Skill Development. SAGE Publications, 2015.
Lüsted, Marcia Amidon. Netflix: The Company and Its Founders EBook. ABDO: Edina, 2012.
