Managing strategy Essay Example | Topics and Well Written Essays - 3250 words - 2

Managing strategy - Essay ExampleThe clubs maximum revenue is earned from the domestic streaming services, which accounts for $2.75 billion of revenue generation. Netflix is dominant in the American market, which generates almost 84% of its revenue (Marketline, 2014). This physical composition discusses the external and internal environment of Netflix, using theoretical models wish well PESTLE framework, porters five forces, VRIN framework, Value chain model etc. This is followed by the raillery of the challenges faced by Netflix along with the vantage point which the company has leveraged. The paper further discusses about the companys strategic growth options which have been justified in the light of relevant facts and theories. Finally the paper will conclude with the summary of the major findings from the study, followed by recommendation on the chosen strategic decisions. governmental influence Netflix operates in the movie streaming and DVD rental bloodline, which is rarel y affected by the governmental scenario of a region. However, the semipolitical framework can impose certain regulations and ban particular movies with controversial content. Movies with political storyline often bring controversies and are eventually banned in several countries, which affect the business of Netflix.Economic influence The economical condition of a region highly influences the business operation of a firm. The movie steaming and rental business is highly dependent on the disposable income of the consumers. Moreover, movies are considered to be leisure products and a customer will spend on watching movies only when his disposable income is in and above satisfactory level. The economic crisis of 2012 has impacted the sales of Netflix significantly as it has reduced the number of viewership and subscriptions (Li, 2013). Moreover, the economic crisis has also led to lower number of film productions.Social