The Netflix Firm’s Market Environment in India

Topic: Netflix Words: 596 Pages: 2

Table of Contents

Introduction
Macro-Environmental Factors Affecting the Company’s Performance: PESTEL
SWOT Analysis
Possible Strategies
Conclusion
References

Introduction

The streaming video-on-demand (SVoD) services market continues to expand with immense speed. Netflix is one of the largest platforms in this business, with over 151 million customers across the globe (Kumar et al., 2020). However, the firm struggles to establish its presence as the top service provider in India. By analyzing Netflix’s position in the SVoD industry, it is possible to develop a feasible solution for boosting its subscribers’ number. This case study will review the market environment of Netflix in India and propose ways to increase its presence in this region.

Macro-Environmental Factors Affecting the Company’s Performance: PESTEL

Political Factors The accusations stemming from the #MeToo movement in India have a political link to a former Prime Minister of this country, which puts some Netflix shows at risk due to their authors’ involvement (Mathur, 2018).	Economic Factors The growth of this industry in this region is projected to continue at a rapid pace, with the CAGR over the past five years reaching 83 percent (Sharma et al., 2017). The country has a stable and expanding economy.
Social Factors India’s population size is an attractive target for many businesses, and the SVoD market in the country is relatively new and appealing to the public. Consumers do not perceive SVoD as an essential service.	Technological Factors The network infrastructure in India is relatively underdeveloped, and not all regions have access to a stable connection (Sharma et al., 2017). Limited data plans in the country hinder people’s access to SVoD services.
Environmental Factors An expansion of the Internet in the region will harm the environment. Netflix servers can expand to the point of becoming a significant burden to their location.	Legal Factors Censorship that is common in India presents a challenge for Netflix with its less restrictive policies on content (Sharma et al., 2017). Piracy is rampant in this region and widely accepted among Indians.

SWOT Analysis

Strengths Netflix possesses a vast quantity of content. The company’s network can endure an influx of users. This SVoD service does not contain advertisements.	Weaknesses A limited selection of Indian titles on Netflix harmed its initial popularity (Sharma et al., 2017). The firm did not have the mandatory censorship that was required of Indian media channels (Sharma et al., 2017).
Opportunities Netflix can adapt to the new environment by prioritizing additions of local content. Indians are often accessing piracy websites to avoid paying for SVoD services (Sharma et al., 2017).	Risks The initial failure to attract a large number of users makes Netflix vulnerable to local SVoD companies’ takeovers of subscribers. The company’s pricing strategy relies on the quality over the accessibility of its services.

Possible Strategies

Judging from the analysis of the company’s performance, it is feasible to propose an adaptation for the country’s residents. First of all, the pricing of Netflix’s services continues to exceed its competitors, making the company appear as a premium choice for customers (Mathur, 2018). India has a distinct taste in films, which also calls for adjustments in Netflix’s approach. The inclusion of local titles through exclusive rights among streaming services is a suitable method to lure in additional subscribers.

Conclusion

In conclusion, Netflix can gain a significant competitive advantage by showing flexibility in its pricing strategy and improving the accessibility of regional content. The firm’s competitors provide more opportunities to Indians in terms of subscription options. Companies in this market are acting rapidly to take over their portion for themselves, putting Netflix on a strict timer that may lead to the company’s further loss of its top position. It is essential to reevaluate the source of competitive advantage for this SVoD provider in order to keep its presence in India.

References

Kumar, J., Gupta, A., & Dixit, S. (2020). Netflix: SVoD entertainment of next Gen. Emerald Emerging Markets Case Studies, 10(3), 1-36. Web.

Mathur, P. (2018). Netflix streaming in Indian digital world. Trinity Journal of Management, IT & Media, 9(1), 28-31. Web.

Sharma, T. G., Suraj, S., Srivastava, M., Chandoke, T., & Prakash, P. (2017). Netflix in India: The way ahead. Ivey Publishing. Web.