Introduction
The modern world has become more connected due to globalization and multinational dependence on areas that support socioeconomic development. The 21st century is largely credited with the unprecedented growth of globalization, particularly through global economic interaction, trade, and capital flaws (McGrath et al., 2022). Factors such as technology are associated with the success of globalization and creation of sustainable contemporary patterns of global development. Current trends suggest that the normalization of globalization is increasingly resulting in the homogenization of different policies and the restructuring of international interdependence.
This report examines globalization and its impacts on the Brazilian political, social, and economic progression, specifically focusing on Netflix’s expansion into the country. It provides an in-depth analysis of globalization in relation to consumer habits, local languages, values, and customs. The report also delves into the negative and positive effects of Netflix’s globalization while closely examining the impacts on the company’s communication and marketing strategies. More importantly, this report seeks to illustrate the relationship between globalization and cultural diversity due to continuous global interconnectedness and interdependence.
The Concept of Globalization
Globalization is not entirely new and has existed since the early 1930s, albeit with no clear definition. In later years, the importance of globalization gained traction in other aspects such as the economy and technology (Dabic, 2020). It became synonymous with these aspects, creating a larger influence on how people viewed global interconnectedness and prospects for the future of the global community. Globalization was popularized as a significant concept of the mainstream social, economic, and political systems that aimed to have greater global impacts.
The definition of globalization has gone through various developments over the years. Globalization has been viewed in the context of intensified global consciousness while compressing transformations to increase global interconnection speed (Dabic, 2020). The prevailing consensus among scholars is that without the expansive spatial connections created by globalization, there would be no clear definition of the concept. Therefore, globalization depends on the intensity, extensity, and velocity of global impacts created in different social, economic, and political sectors.
Extensive evidence indicates that globalization is increasingly resulting in greater international ties based on a wide range of domestic and international factors that could potentially create greater impacts on international relations. The entertainment industry is one of the most rapidly expanding sectors of the global economy, accountable for a larger percentage of global interconnectedness. Netflix is one of the leading companies in this sector, providing various diverse services, particularly through movie streaming and film entertainment (Skinner, 2020). The company has established itself as a competitive force in the global economy, reaching over 190 countries (Menghani, 2022). Netflix’s global expansion has been significantly impactful in the vibrant and highly diverse Brazilian culture.
Brazil is a unique nation with a historically rich background dating back centuries to the arrival of different slave traders and enslaved people. Following decades of this rich historical context, the country has developed into one of the most dynamic countries characterized by a social, warm, and loving culture. The Portuguese culture largely influenced the country despite having diverse customs and religions brought about by the slavery background (Luenendonk, 2019). With a current population of 212.6 million people as per the 2020 census report, Brazil is a major economic hub for multinational companies. It offers a large market base that can be tapped into, creating the perfect opportunities for globalization in the larger South American market.
Netflix: Company Description, History, and Business Area
Netflix is a leading global enterprise based in the United States and specializes in offering streaming and entertainment services. The company has demonstrated tremendous growth from providing online movie rentals in the 1990s to becoming a world leader in streaming entertainment services, producing T.V. series, documentaries, and feature films in various genres and languages (Rataul et al., 2018). This International expansion has captured more market global segments and a large market share, contributing to increased revenues. Netflix was founded in 1997 by Marc Randolph and Reed Hastings as a video-rental company and expanded through diverse services developed over time (Turner, 2019). The company has a diverse consumer network of millions of subscribers who can access content in real-time through technology. Since the company has a huge base of operations and support teams, it has discovered innovative and technological tools to sustain operations and support the increasing number of subscribers.
Technology has greatly contributed to globalization in various industries and sectors. Good broadband is a key factor for countries that Netflix expanded to, allowing consumers to enjoy their product fast and reliably. Through technical skills and advanced data analytics, the company developed a hybrid structure responding to customers’ preferences for local content (Dias and Navarro, 2018). The company has invested heavily on production that entertains both local and international audiences with diverse content (Skinner, 2020). As a multinational, the company is continuously developing strategic relationships between cable operators and device infrastructures to increase its reach to potential customers in the global market.
Netflix’s success in the adoption of international market strategies began with countries that were relatively close to the United States as the parent country. It focused on geographically close countries, beginning with Canada in 2010 the first step to realizing international capabilities (Turner, 2019). The monthly subscription was low and affordable, leading to an increase in the number of subscribers, despite the lack of a variety of content. This strategy was highly effective and created a learning experience for the company to transition to other developmental stages in the global economy. As a progressive strategy, Netflix focused on developing marketing capabilities in diverse markets. The company then expanded to more than fifty countries by partnering with local markets.
Netflix’s dynamism has allowed the company to provide more content and diverse services for customer satisfaction. Through effective organizational strategies, customer satisfaction is a key driver in establishing relationships with stakeholders and markets. Netflix’s determination to become a global company helped the company study different consumer behaviors in relation to different markets (Rataul et al., 2018). However, the change in customer preferences and mindsets was a formidable challenge. By addressing this factor and being strategically flexible to adaptability, the company was able to leverage emerging opportunities to capture larger market shares. For example, collaborative efforts with domestic and local studios in local content production provided a support base for partnerships (Skinner, 2020). Netflix has taken bold steps in internationalization through marketing leadership roles that focus on optimizing personal algorithms to a global library of various content.
The company has equally benefited from experimenting with customer needs and developing customer-centric models for its operations. This strategy has contributed significantly to the company’s success despite its rapid internationalization. However, there is a strong need for the company to develop a clear vision and purpose for the future to expand further and sustain the position and significance they hold in global markets (Dias and Navarro, 2018). A mastery of local contexts will improve responsiveness and bring about sensitivity and the ability to gain domestic knowledge (Luenendonk, 2019). Developing a strategic collaboration practice with partners and the organizational employees will be instrumental in the company’s prospects of becoming a market leader.
Globalization Impacts on the Brazilian Culture and Market Traditions
Globalization transcends all barriers of traditions, definitive cultures, and ideologies of nationalism or state relations. Netflix has become a popular platform for subscription and video-on-demand services across various countries, signifying a golden era in American Television. Brazil is a top market, with over half the country’s population becoming subscribers to Netflix. Currently, Brazilian people have a major preference for American productions and films translated into Spanish or Portuguese language (Turner, 2019). The preference for American films can be attributed to Netflix’s focus on high-quality production methods facilitated by high investments in production. Netflix’s evolution demonstrates the adoption of strategies focused on the relevance of local production compared to commercial production.
The effects of globalization, particularly in Brazil, have solidified the political ties between the U.S. and Brazil, which now share a closer connection. Evidently, for most Brazilians, the United States is the most favorable country for adopting new cultures, values, and social norms. This factor has impacted political changes with the Brazilian government’s involvement in global affairs. The country’s social, political, and economic efforts in sharing and expanding regional power and values have influenced a greater need to explore the Brazilian community as a potential market and regional area for exchanging cultural values and social norms. Through education, traveling, and learning, it is evident that the integration of new cultures in Brazil is creating a greater stratification of people’s tastes and preferences as they acquire cultural capital that enables them to enjoy more foreign cultures.
Netflix’s expansion found an increasingly fertile climate in Brazil for its acceptance by customers, preferably for foreign content which they offered. Preference for U.S. television increased notably among the best educated in metropolitan areas in Brazil. Such situations have created global concerns about the loss of cultural and political authenticity as well as uneven global flows linked to the new waves of technology. As a result, a major impact has been the movement toward absorbing and copying U.S. culture. This impact has been detrimental by slowly eroding cultural values, social norms, and the uniqueness of cultural diversity. Netflix’s globalization into the Brazilian culture has created major changes as more Brazilians seek to emulate American lifestyles and prefer Western consumer products such as clothes which gradually push Brazilian products into extinction.
Positive and Negative Effects of Globalization
Positive Impacts
Globalization has had positive and negative impacts that have helped define the contextual aspects of international expansion with broader access to the international market. Globalization accounts for a significant percentage of global economic growth through foreign exchange brought by multinational companies (Stobierski, 2021). Netflix in Brazil has contributed to a growth in the country’s gross domestic income and has also positively impacted the larger South American continent. The company’s presence in the country has created countless economic opportunities paving the way for the entrance of other multinationals. The company has exposed the diverse South American cultures to the world, presenting it as a suitable business hub, tourist destination place, and potential market for new companies and multinationals (Menghani, 2022). Netflix has been able to tap into the large South American consumer base, consequently boosting people’s standards of living, providing jobs, and increasing wages.
Globalization has helped promote world unity and peace. The expansion of Netflix into other countries has fostered closer international ties, thereby reducing the chances of conflicts while supporting investment and trade in many ways (Skinner, 2020). Moreover, globalization has also influenced the improvement of the quality and variety of goods and services (McGrath et al., 2022). The competition from companies like Netflix has spurred other companies to provide similar products and services while improving quality to meet consumer needs. This benefit is evidenced by the company’s focus on the quality of streaming services and movie varieties.
Negative Impacts
Globalization has also been associated with the dilution of indigenous cultures to make room for integration of foreign language, values, and social norms. As a result, the authenticity of various global cultures has been lost to the increased interconnectedness presenting western culture as a predominant and preferable culture. A good example is a loss of the diverse Brazilian culture to the American culture, evident in many ways, including dressing, language, and other social aspects. These effects could be detrimental as the world could completely eradicate cultural diversity that holds significant meaning and value to people’s identities, backgrounds, and other inherent differences.
Globalization has also had major negative impacts on economic aspects through various detrimental outcomes. First, globalization has resulted in more job insecurities, particularly in new markets. According to Stobierski (2021), globalization is seen as a double-edged sword where it takes jobs from one country to another. This effect has often been driven by the cheaper manufacturing cost and wages, especially in developing countries. Secondly, globalization has resulted in increased competition that is not always fair to local companies competing with established multinationals. Domestic companies are often disadvantaged by competition from well-established and well-known foreign brands like Netflix. This effect could lead to the government adopting protectionist policies, which may adversely impact economic performance. Thirdly, globalization has been associated with detrimental environmental effects such as pollution (Luenendonk, 2019). This impact can be seen by various practices such as deforestation leading to a loss of biodiversity caused by infrastructure development when setting up companies and economic specialization.
Globalization Impacts on Netflix’s Marketing Strategies and Communication
Globalization has impacted Netflix’s marketing strategies and communication in significant ways, presenting both desired and undesired outcomes. The company’s marketing and communication departments have had to contend with fierce competition on a global scale to sustain the brand image and market share. This factor has led to more dynamism and improved marketing activities in a diverse global environment with frequent revision of operational marketing programs (Luenendonk, 2019). Globalization has created global structures allowing the transmission of information and ideas from one corner of the world to another. It has generated economies of scale through the standardization of operational marketing, especially communication and packaging (Stobierski, 2021). The speed and intensity of market reach have improved immensely because globalized companies such as Netflix plan and organize new services and products in a shorter time frame.
In the case of product marketing, two factors are involved in ensuring multinationals sustain their brands through globalization. The first factor is where the product will be made or originally produced. Netflix has been able to choose the option of either making the product in a single market or in several markets where it is being commercialized (Stobierski, 2021). The second factor is the identification of the extent to which the product needs to be adapted to the needs of a particular market. Netflix has employed strategies such as customization and standardization of their product according to each market’s and client’s wants. Product standardization has the benefit of a cost reduction, whereas the adaptation strategy of a product to local demands leads to increased customer satisfaction (Luenendonk, 2019). Promotional strategies are employed and are influenced by the cultural differences, ethnic, religious, and moral considerations in the country, and the attitude of the consumer towards global brands and local brands. Netflix has come a long way in employing these strategies in marketing its products, contributing immensely to its success in the international market.
Netflix’s Global and Local Strategies
Netflix has established itself as a significant competitor in its industry by leveraging various emerging and existing opportunities to support its business objective. In the U.S., Netflix has focused on various key strategies, including understanding the needs of different consumer demographics to produce content for everyone. The platform streams various films that satisfy the needs of all audiences, including children, youth, adults, men, women, and other categories of audiences. This strategy has been used across the globe to capture larger market shares with regard to consumer preferences and the diverse needs of different markets. In other markets that are not predominantly guided by American culture, Netflix has focused on creating local content that appeals to specific markets rather than forcing consumers to conform to Westernized products (Ross, 2022). Globalization has allowed the company to produce and disseminate consumer-specific content in terms of language and culture, making it possible to capture audiences in any part of the world.
The marketing strategies have focused on dynamism in various significant aspects that leverage innovation and digital media advancements. The company largely uses an integrated and agile approach to develop its brand and sustain effective consumer relationships (Dias and Duzert, 2021). This strategy focuses on adopting the latest technologies and real-time data analytics for creative and innovative advertising. It uses digital advertising channels, which provide better opportunities for capturing larger audiences globally rather than in localized markets. This strategy has been sustained across different markets, allowing the company to maintain consistency and stability on a global scale (Ross, 2022). However, managing the company’s digital marketing strategies could be more effective by integrating traditional marketing strategies with evolving strategies for stronger results. Conventional marketing strategies have demonstrated the ability to sustain marketing resilience, thereby making it practical to include them in digital marketing efforts.
Netflix’s Marketing Strategies Currently Used in Brazil
Netflix’s global and digital marketing strategy can only be described as an innovative modern-day technological growth. First, Netflix has adopted the production of content in the local language that’s universal and specific and uses voice actors in dubbing dialogue (Menghani, 2022). Netflix entered the Brazilian market by breaking the monopoly of main television like T.V. Globo and employed trendsetters signed to the service through VPN or abroad to watch the Brazilian content (Dias and Duzert, 2021). They used the strategy of creating awareness, educating, and convincing the Brazilians on how the new content consumption model would work (Skinner, 2020). Second, website development uses a user-friendly interface that provides the customers an option to rate movies and T.V. shows. Netflix got in the minds of their consumers by optimizing the content of their website by the name of the actor, the title, and the director’s name. Netflix partnered with the best agencies for website development specific to Brazilian customers and added many features.
The third strategy adopted by Netflix in Brazil was optimizing the use of social media in their digital marketing campaign. The strategy impacted the customers greatly as they could connect and engage with the audience in real-time. On Facebook, for example, they post clips of upcoming T.V. shows and movies, giving the audience a sneak peek and also giving spoilers (Menghani, 2022). Fourth, Netflix employed an email marketing campaign as a part of their digital marketing strategy to push their brand above the competitors who started following Netflix’s model (Skinner, 2020). This was aimed at promoting the nurturing and onboarding of their customers and also providing recommendations to the customers of the trending content and a host of their library of movies, T.V. shows, and documentaries.
Conclusion
This study aimed to examine the impacts of globalization on the Brazilian culture with regard to Netflix’s expansion into the country. Based on research developed by various scholars, it is evident that Netflix’s entrance into the Brazilian market accounts for major social, cultural, economic, and political changes as a result of globalization and sustained efforts to operate in the Brazilian market. Globalization has resulted in the erosion of cultural authenticity as more indigenous cultures continuously adopt the dominant Western cultures. This impact has consequently affected the values, attitudes, and customs with the increased preference and adoption of American culture. Netflix’s expansion into Brazil demonstrates this impact as more Brazilians prefer and adopt the American culture portrayed in films.
Globalization created more economic challenges, including job insecurities and unfair competition from established multinationals. A positive impact of globalization in Brazil has been economic growth advanced by more opportunities created by the entrance of multinationals into the market. Netflix has exposed the country to the world and presented it as a desirable destination for businesses, tourists, and other audiences. Netflix’s expansion into Brazil has had varying outcomes on the country’s cultural, political, economic, and social systems. In this regard, globalization is not only critical to development but also detrimental when not effectively monitored and controlled to minimize negative effects through interconnectedness.
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