Netflix in India: The Way Ahead Harvard Case Solution & Analysis

Netflix in India: The Way Ahead Case Study Analysis


In terms of developing coordination and communication with the individual employees and workers in India, the organization is required to focus on facilitating the alternative strategic approaches against the issues faced. The provision of a good working environment, training, involvement in the process of decision-making and listening to their ideas, opinions, and concernsare considered to be the key factors influencing the performance of employees resulting in increased productive outcomes and efficient behavioral outcomes.

Improved performance of employees results in the increased profit generation through efficient performance. A part of the profit generated can be significantly used to provide training to the employees, provide incentives and rewards for the appreciation of the good performance. On the other hand, the business operations of the organization can be significantly financed through taking debt from the financial institutions, mergers, and acquisitionsto improve the product portfolio and expand the range of services offered to the potential clients based on their preferences. The interaction with the suppliers is required to be maintained at a positive level as they are the key suppliers of the products. A strong relationship with the suppliers by valuing their needs and demands if favorable for the organization would provide the organization with a competitive advantage in the market.

Adaptation, Aggregation, and Arbitrage


The adaptation strategy mainly includes strategic approaches that are considered to bring significant improvementin revenue growth and to capture the marketing share by bringing change in few components of the business model of the organization to meet the preferences and needs of the potential customer base. The organization will need to change its current pricing model as the disposable income of the citizens is low and the majority of the populations belong to the middle class or poor class. Therefore, the implementation of thecost leadership strategy associated with the services offerings at relatively lower or competitive prices tends to make the Netflix subscription model the cheapest to get affordable to all the customers.


The difference in the cultural value in the United States and India has greatly influenced the sales and profitable growth of Netflix in India. Changing the services according to the cultural values of the Indian population i.e. language, price and content would serve as the key factor in grabbing the attention of consumers resulting in the increased subscription rates.


One of the key administrative issues faced by Netflix in India mainly includes the concerns associated with censorship. Before the launch of any service or product in the Indian market, Netflix is recommended to take permission from the regulatory bodies for the authorization of the content generated to avoid complications in the future. In the case of unapproved sensitive content, the government of India might take action against the provision of such content to wide-ranging customers.


Considering the regional differences based on the cultural value, beliefs, political system and policies i.e. the U.S. is a western nation while India is an eastern nation, the content generated by Netflix is highly demanded in the United States which lacks in India. Thus, product differentiation is required to gain a foothold in the Indian market.


The economy of India is considered to bring significant improvement in the future. This is due to the reason that the interest rate of the country is low and the inflation rate is considered to get low. Thus, the increase in the purchasing power would increase the GDP growth of the country leading to increased economic growth and increased sales and profitable growth of Netflix through improved average spending of the customer for entertainment services.


The aggregation involves standardization of the global operational strategy allowing the significant utilization of the economies of scale in different places in India. Thus, the economies of scale can be achieved by Netflix through centralizing the research and development and management of the organization for various regions in India at one central location i.e. Mumbai. The centralization of operations and management will enable the organization to operate at a lower cost, higher efficiency and enjoy quality control.


Economic arbitrage can be achieved by employing skilled laborers that know the online platform market in India. Besides, economic arbitrage will be achieved by borrowing funds in the presentation currency that the USA as the interest rates in the USA are low as compared to India. Also, instead of collaborating with local content delivery network providers in India, the organization will distribute content through Open Connect, its content delivery network to achieve economies of scale.

Adding Value Scorecard

Adding Value:

The offer of subscription packages at relatively low rates tends to generate higher profit margins by Netflix resulting in increased profitable growth which is considered to be affected due to international expansion. The low pricing strategy grabs the interest of the customers on a large scale to get high-quality services at low prices for all types of the market i.e. low, middle, and high-end markets. Thus, targeting the customers of all ranges of income would significantly allow Netflix to gain a competitive advantage through economies of scale making it the leading player in the media market.

Decrease cost:

The expansion of business at the global level is considered to bring a reduction in the operational cost but requires heavy investment to set a foothold in the new market by adjusting itself according to the national culture it tends to operate its services in. Increased investment to grab the consumer interest would generate increased sales recovering the investment in the profit for the organization.


Continuous investment in improving the services and the experience of customers in the products by innovation is known to bring significant changes in the industrial dynamics serving as a competitive factor. Due to the consistent innovation and product differentiation, the provision of high-quality services to the customers develops a sense of consumer loyalty bringing a reduction in the probability to switch from the brand to other players in the market.

Improving Industry Attractiveness:

A better understanding of the key environmental factors that positively influence the market trends allows the organization to bring improvement in the market attractiveness. Furthermore, determination and evaluation of the needs, demands, and preferences of the customers and adjusting the products according to their preferences provide the organization with the opportunity to gain a competitive advantage. This, in turn, allows the organization to gain most of the market share, bring improvement in the brand reputation and increased profitability.

Normalize Risk:

The expansion of business at the international level often provides the organization with a first-mover advantage in a particular nation which is known to bring a reduction in the risk of failure of strategic approach implementation and grab the sales from the target market. Additionally, an increase in sales is expected to demonstrate significant growth of revenues making it difficult for the new entrants to enter the market.

Generate Resources:

Offering the services to the customers in India at low priced packages in comparison to the services offered by other players in the market tends to allow the customers to increase their spending on thesubscription fee. This can be significantly be done through the improvement in the income of the Indian population. Due to the increased use of the internet by the Indian population on smartphones i.e. 60 percent of the population representing the majority of the population segment, the approach to gain the increased market share is considered possible for Netflix.

Access to OUTPUT markets:

The evaluation of the access of Netflix in India was based on the determination of the growth imperatives of local producers i.e. the strategic approaches used by them to grab the large scale of the market. After gaining the interest of customers which means the expansion of the target customer base the sales of the product are considered to be maximized.With the increased demand for the services offered by Netflix, it will significantly experience improved economies of scale. In the initial stage of service offers in India, Netflix should focus on the core competencies i.e. generation of good quality content to retain the customers.

Access to INPUT markets:

The access to the input market included the low-cost labour from the same country in order to manage the business operation such as the management of the supply chain resulting in cost-saving. The determination and evaluation of the employees demonstrating the excellent skills at work is considered to bring significant improvement in the technological use leading to the implementation of best practices at place.

AAS Model:


Offering high-quality content at the lower subscription rates per month would allow the company to avoid the risk of being rejected by the customers in India. Furthermore, as the company is contemplating to offer to global and local content to the customers in India in the multi-regional languages, the company would be able to align the expansion strategy with the new business model. By adding the local languages to the interface of users as well as adding the subtitles and dubbed content to the local customers, the company would be able to attract the larger customer base and maximize the market share.

In addition to this, the overall globalization strategy of the company is based on responding to the preferences of the customers to provide the local content. This strategy, in turn, serves as a win-win strategy as the company enjoys the advantage of creating local content all around the globe. Furthermore, producing the original and local content and developing the country-specific understanding and knowledge acted as a key success factor for expanding the business operations in the international markets. Shortly, if the company offers content at the high rates ion the Indian market, it would not be able to gather the market share and would put the business model at risk.


The company needs to avoid offering the high-quality content at the premium rates because the population in India have low disposable income and low spending power due to which the company should formalize the new strategies based on offering high-quality content and taking into consideration the preferences of the customers. Also, the inflation rate in India is considerably higher which does which allows the customers to spend their money to watch movies due to which the company should offer services at considerably low rates.


The global expansion strategy of the company involves, considering the preferences of the customers, adding local content and subtitles to its user interface which is compatible with the demand of the local users. It is because there is a high demand forSouth Indian and Bollywood movies in India. Not only this, the globalization strategy of the company involves considering the economic, political and cultural conditions of the host country and formalize the strategy following the conditions to maximize the market share and increase brand equity.


With increase in the number of internet users in India, Netflix had the opportunity to expand its services in India. The successful service expansion, product and price differentiation, the extensive market reach and increased consumer base and no of subscribers in India would lead to the generation of increased demand.By adding the local languages to the interface of users as well as adding the subtitles and dubbed content to the local customers, the company would be able to attract the larger customer base and maximize the market share.................................


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