In the following case, we look at how Netflix has developed a strategic approach to managing human capital, which has enabled it to hold high expectations for its employees and deliver exceptional service to its customers. It has also been able to tap local talent and local content to achieve innovation. This has been reflected in the company's ability to create and innovate content, to define and develop new services, and to improve existing services.
In the case of Netflix, in contrast to other streaming services, the company's strategic approach has been to primarily consider the needs of its consumers. Netflix goes beyond the basic benefits of offering content, by proposing solutions that are relevant to the needs of its consumers. This has been reflected in its approach to content market creation and recommendations. Its business model is based on a client-centric approach that gives the company an edge over the competition. The company has been able to set high expectations and deliver exceptional service to its customers with its efficient content creation and discovery processes, coupled with an established consumer-centric approach. This innovation has enabled it to move from being solely a content delivery platform to one that offers services such as on-demand video, purchase of streaming subscriptions, and synchronous (video on-demand) and asynchronous (video on-demand) delivery of content.
Netflix has a mandate to create best-in-class global brand experiences. This drives the company's strategy and culture, and underpins its ability to innovate and improve existing services. It is the company's core competency and it has a huge influence on all other functions.
In order to assess the impact of recent changes in the market, we conducted a retrospective analysis of Netflix's strategic options review (which is based on factors that contribute to the core competencies of Netflix in its competitive position and environment, hence its strategic options).
The factors contained in these categories are listed in table 1.3.1. We conducted a retrospective analysis of the impact of each of these factors on the creation of Netflix's strategic options.
The rationale behind the study is that such analysis could serve as a complement to Netflix's past reviews, in particular to its VRIN / VRIO review, as it sheds light on how factors that are crucial for its competitive advantage and success were updated or changed over time.
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