Management
Globalization Strategic and Operational Plans
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Globalization Strategic and Operational Plans
Going global requires a unique marketing strategy of securing product or service deals on a regional basis just as employed by Netflix, which saw a robust growth internationally. However, there are many regulatory restrictions in the foreign market that might hinder the companies. Netflix’s international strategy is crucial given that intense competition already existed in many global countries, where leaders are selling localized content that mitigates the chance for a first-mover advantage
Successful Strategic Moves
Below are the important phases of Netflix’s global strategy that I would recommend our company to employ.
Selective market entrance
Netflix identified markets depending on the perceived differences. They began by choosing less differentiated markets. Through this process, the company learned how to effectively expand and improve their capacities beyond the United States (Stanwick & Stanwick, 2020, p. 207).
Faster, post-learning expansion.
According to Stanwick & Stanwick, 2020, p. 207), the first phase lessons enabled Netflix to select markets depending on attractiveness, which is similarities and affluence. Through this, the company supported the rollout with local partnerships and investments in localized content and data analytics.
Rapid expansion
Using the expertise generated from previous phases, Netflix ably expanded rapidly. This is because the experience gained helped in determining marketing tactics, and company-wide organization. From experience, Netflix decided to focus on optimizing personalization algorithms and expanding support for devices and operations.
Therefore, selecting market entrance keenly and drawing lessons from experience will enable our company to propel internationally.
Data analysis provides companies with the quantitative data necessary to make good, informed decisions that improve their services (Stanwick & Stanwick, 2020, p. 189). Building a more significant user base in its second phase allowed Netflix to collect vast amounts of data. This data enabled Netflix to make the right choices and hence make users happy with its service. The data also helped Netflix obtain additional information on how well it could help the company to influence users in more content subscriptions. The company used this data to see user trends to a deep-seated understanding of engagement.
The elements of Netflix’s expansion strategy together constitute a new approach known as call exponential globalization. It is a carefully organized expansion cycle for a growing number of countries and customers. The plan has helped the company expand wide faster than competitors.
Reasons why certain companies’ expansion plans have failed in the past
Many companies have failed in their expansion plan because of improper market research. Lack of enough market research, such as determining the size of the market, or understand the markets in which a company desire to expand into automatically leads to failure. Some companies had also failed to grow due to insufficiently conducting market validation of their product or service, as well as failing to get the product-market fit right before they spent a lot of money on marketing. Moreover, some companies such as Walmart have also was unable to expand because of the blindsiding by the externalities (“10 successful American businesses that have failed overseas,” 2013). These include Economy crashes, changes in tax regulations, unforeseen payment defaults, changes in procurement policies for corporate customers, as well as exchange rate fluctuations. In all these, if they were not planned for at the early stages of expansion, the company has little control over these kinds of events.
The popularly known e-commerce site eBay failed in oversees, especially in China and Japan. In China, Consumers needed to be able to see and easily communicate with a seller’s online status, a function that was not fully integrated into eBay’s China system. Notwithstanding the eBay’s seller scoring system based on responses from past buyers, Chinese customers prefer to build confidence by their own connections with sellers instead of acting on ratings from other subscribers (“10 successful American businesses that have failed overseas,” 2013). eBay also struggled in Japan, where it launched in 2000. Here, it failed to modify its strategies and purchasing techniques to local needs. For example, buyers had to insert their credit card details to buy a product, a practice that was not popular at the time in Japan. According to Finance Elements, the cash-on-delivery service would have made a significant difference in how it was received; however, eBay failed to offer it.
Hypothesis testing
From the hypothesis test drawn from the data, the average Time in Queue (TiQ) is slightly higher than the industry standard of 2.5 minutes (150 seconds), which is at a significance level of α=0.07. There is no need for the company to allocate more resources to improve the TiQ since it is already at a standard level.
It is observed from the hypothesis test performed that the average service time (ST) with service protocol (PE) is lower than the average service time with the PT protocol. This, therefore, means that the new service protocol PE introduced by the company served its purpose.
In conclusion, for a business purposing to expand into an international market, it is vital to conduct proper market research before engagement. It also require an understanding of the strategies needed to be incorporated to avoid future failure. Analysis of previous data content for any information may lead to business operation success and also enhance better service delivery.
References
10 successful American businesses that have failed overseas. (2013, September 12). International Business Degree Guide. https://internationalbusinessguide.org/10-successful-american-businesses-that-have-failed-overseas/
Stanwick P., & Stanwick, S. (2020). International management: A stakeholder approach. Edward Elgar Publishing.
