The essence of competition is to improve or maintain the company’s position in the market, which is achieved through differentiation and innovation. Over the past decades, innovation has become a must for a successful organization. This was facilitated by increased competition, which forced companies to constantly increase the efficiency of their work. The only solution to this problem is to introduce some new, fresh, and progressive ideas (Shaw, 2017). This paper aims at identifying how to improve the competitive landscape of an organization and shift the way of working towards the one that spurs innovation to drive growth. The suggested actions to advance the market position of an organization are based on the Netflix case study.
Netflix is a great showcase for innovation since, at all stages of its development, the company maintains its innovative potential at a good level. It implements many projects that contribute to the stabilization and maintenance of market positions. One of the key company’s values is creating a productive work environment, not controlling employees (Fuhl, 2020). For a successful management innovation, the main thing is the result that employees must achieve by the set deadline. Internal factors have a significant impact on the infrastructure of the company’s innovation potential since their development affects the organization’s efficiency.
The company should create a unique and inimitable idea, as Netflix did, to improve the competitive landscape. Ideas must be original and differ from traditional approaches to solving urgent problems (Shaw, 2017). A promising solution for any company is to pursue a strategy that implies dynamic innovation and experiments in its activities to maintain its leading position in the market. For example, Netflix is changing the business by paying its employees more than the market permits (Fuhl, 2020). Therefore, keeping up with the times, this company maintains its leadership position to this day.
The organization should adhere to the innovative type of competitive behavior by introducing new components into its business professional activities. These are not only new technologies but also new approaches to human resource policy. For example, Netflix has imposed an embargo on mutual criticism, so all the employees, even top managers, are not allowed to criticize each other (Fuhl, 2020). They can give only positive feedback and support the vision, ideas, and suggestions of their colleagues. Leaders want their employees to behave constructively and strive to ensure that people are involved in each other’s projects. This innovation helps to create an environment in which everyone will be enriched by the positive reactions of colleagues.
The company’s management should strive to achieve competitive advantages by staying ahead of competitors and creating a more efficient business organization. For instance, Netflix has the following logic in hiring new people: it is better to hire three expensive but good media stars than five inexpensive but mediocre managers (Fuhl, 2020). Therefore, to shift the way of working towards growth and innovation, the company must actively search for the best professionals in the market.
The Netflix case study confirms the importance of management innovation in the development of various modern companies. The suggested developments can push one or another organization to implement them and move forward the success. Innovation is essential in modern business because it protects the competitive position of the company from new competitors. Currently, novelty and development are fundamental to ensuring the sustainability, stability, and efficiency of the organization. They form the most important factors for profitability and growth. Thus, modern companies should actively use the developments in this area.
Reference List
Fuhl, J. (2020) 7 ways Netflix reinvented HR—A case study. Sage People.
Shaw, R. B. (2017) Extreme teams: Why Pixar, Netflix, Airbnb, and other cutting-edge companies succeed where most fail. New York: Amacom.