Netflix Core Competencies Assignment

Question

Task: Conduct a research on core competencies assignmentand prepare a study identifying the core competencies of Netflix and outcomes from those competencies.

Answer

Introduction
The present core competencies assignment is based on the concept of core competencies which are the main resources and abilities, which includes of the strategic benefits of an organisation. A management theory rows that organisation must describe, develop and utilizeits core competencies in order to be victorious in this cutthroat competition. The core competencies of the company can be anything. This mainly depends on the type of the industry or on the organisation in which it is operating or what it is dealing. This aids the company to be specific related to their work and give better output. The activities performed by the companies should meet up with it core competency. It is stated herein core competencies assignment that the aim of achieving the core competency through work is to offer superior quality of product or value to the consumer. Additionally, it should be very much complex for its competitors to imitate or copy it.

Figure 1: Core Competencies Goals
(Source: Core Competencies - What is it? Definition, Examples and More, 2020)

Some of the basic example of core competencies identified in this core competencies assignment can be analytical thinking, conflict resolution, decision-making, creative thinking, client service and conceptual thinking. Each of the company mainly creates the core competence in a different way to create a better impact on its consumers. Additionally, the provided study will emphasize on the core competence of Netflix. The study will focus on core competence of Netflix and the way the company gets the desired outcome from it. In addition, the evaluation of competence against the rivals of the chosen company will be discussed.

Discussion
Netflix, an American based media service provider, Reed Hastings and Marx Randolph founded the Production Company in the year 1997. The organisation’s main business is creation of subscription-based streaming service that provides online streaming of collection of films and TV programs(Perryman and Strategy, 2014). This includes produced in-house series too. The organisation is world’s leading streaming entertainment service provider(About Netflix, 2020). Currently the online streaming giant has around 182 million paid subscriptions around the globe of which comprises of 69 million in United States only. It also the members to stream live and watch wide selection of award winning TV shows, documentaries, movies and thousands of internet-associated devices. Netflix serves many different countries(Netflix Corporate Information, 2020).

Figure 2: Number of Netflix Subscribers Worldwide
(Source: Statista, 2020)

Nevertheless, there are certain countries where it does not stream namely Iran, Mainland China, Syria, Crimea and North Korea. The company is a member of Motion Picture Association of America (MPAA). The company also maintains its CSR value by reacting and participating in the global causes. It is been acknowledged in the present core competencies assignment study that Netflix is going to donate £3.9m to black creators supporting the worldwide protest Black Lives Matter(Netflix pledges nearly £4m to support black creators, 2020). The graph provided within this core competencies assignment will emphasize on the international expansion of Netflix.

Figure 3: Netflix International Expansion
(SourceRichter, 2020)

The company is also one of the strongest contenders in streaming industry worldwide and it is leading the industry with best creations and distribution of services.

Figure 4: Graph Depicting Highest Video Streaming Providers
(Source: Armstrong, 2020)

As mentioned in the study of Hawi, et al, (2015)considered to develop this core competencies assignment, identification and honing the core competence of the company is very much important as it enables the company to deliver unique value to its consumers. The core competence of the company aids in building brand image and consumer loyalty. The core competence of the leading streaming company is also unique and different from other companies. Netflix extended its core competency of content delivery to consist of not only physical and digital content but also to create their own original content(Death To Core Competency: Lessons From Nike, Apple, Netflix, 2013).This competence leads the business to have leveraged their core competence for modernization and expansion.Additionally, the core competency of Netflix was to offer its customers easy access to TV programs and movies(D2oqb2vjj999su.cloudfront.net, 2020). Additionally, apart from delivering content conveniently to the consumer the company also started creating original content in order to retain and attract more customers. Nevertheless, the company has itself out shunned its core competency by not sticking to it and started creating its own original contents.

The outcome core competency of Netflix is been observed very much favourable. The company was the first in the market with on demand cloud based movie and TV programs. The company received much fame and acknowledgement in its parent country as well as around the globe where it was offering its services. Moreover, after achieving this much success the company however, hindered its own core competency by creating its own original content. The solid foundation created by them based on their core competency lead them to enter the market easily with their own produced contents. The provided image will illustrate the soaring subscribers of the worlds’ leading streaming organisation.

Figure 5: Net Income of Netflix from 2014-2019
(Source: Netflix - quarterly revenue 2020 | Statista, 2020)

Online video streaming has developedconsiderably in recent years. Initially there was just one brand, which was leading this industry. However, Netflix has now many different competitors in this field and one such competitor of the company is iQIYI. It is also a leading streaming company, which is mainly famous in china. However, being both the competitor of each other they both share different core competency in order to be better than each other do. It is been noted in the present context of core competencies assignment that Netflix has most of its revenue from its subscription only and it mainly sticks to this competency. However, iQIYI uses different strategies to create model with m-different types of content strategies such as comic, videos, literature and gaming(How Does iQIYI Compare to Netflix? (2019). Additionally, iQIYI is creating an all-round media empire to attract more competitors by focusing to its core competency and taking potentially bold and fruitful moves to attain it.

Conclusion
Core competency is the main resource explored in the core competencies assignment, which assist the company to focus on it and then perform their function in order to achieve its organisational goals. The company Netflix has this unique core competency, which makes it the leading streaming company in the world. The core competency of Netflix is to delivery world-class content from movies to TV shows to its consumer through online streaming. Nevertheless, the core itself surpassed its competence by creating its own original. Additionally, the company has now many competitors in the market, which differs from each other and creating tough competition in his industry. ?

Reference list
About Netflix (2020). Available at: https://media.netflix.com/en/about-netflix core competencies assignment (Accessed: 16 June 2020).

Armstrong, M. (2020) Infographic: The World's Most Popular Video Streaming Services, Statista Infographics. Available at: https://www.statista.com/chart/20701/video-streaming-services-with-most-subscribers-global-fipp/ (Accessed: 16 June 2020).

Core Competencies - What is it? Definition, Examples and More (2020). Available at: https://www.kbmanage.com/concept/core-competence (Accessed: 16 June 2020).

D2oqb2vjj999su.cloudfront.net.(2020) Netflix Strategic Analysis Global Strategic Thinking Available at: http://d2oqb2vjj999su.cloudfront.net/users/000/072/456/447/attachments/Netflix.pdf (Accessed: 16 June 2020).

Death To Core Competency: Lessons From Nike, Apple, Netflix (2013). Available at:
https://www.fastcompany.com/3005850/core-competency-dead-lessons-nike-apple-netflix (Accessed: 16 June 2020).

Hawi, R.O., Alkhodary, D. and Hashem, T., 2015. Managerial competencies and organizations performance. International Journal of Management Sciences, 5(11), pp.723-735.

How Does iQIYI Compare to Netflix? (2019). Available at: https://medium.com/@brett.schafer/
how-does-iqiyi-compare-to-netflix-8323de31ccdb (Accessed: 16 June 2020).

Netflix - quarterly revenue 2020 | Statista (2020). Available at: https://www.statista.com/statistics/273883/netflixs-quarterly-revenue/ (Accessed: 16 June 2020).

Netflix Corporate Information (2020). Available at: https://help.netflix.com/en/node/2101/as (Accessed: 16 June 2020).

Netflix pledges nearly £4m to support black creators (2020). Available at: https://www.independent.co.uk/arts-entertainment/tv/news/netflix-donation-black-lives-matter-collection-watch-a9567836.html (Accessed: 16 June 2020).

Perryman, K. and Strategy, B., 2014. Netflix.

Richter, F. (2020) Infographic: Netflix's International Expansion, Statista Infographics.Core competencies assignment Available at: https://www.statista.com/chart/10311/netflix-subscriptions-usa-international/ (Accessed: 16 June 2020).

Statista (2020). Number of Netflix subscribers 2019 | Available at: https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-worldwide/ (Accessed: 16 June 2020).