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Netflix Managing in Global Arena

Netflix is a multinational corporation that offers online streaming service to their


customers to watch wide variety of TV shows, popular movies, documentaries, and much more
on internet connected devices. Being easily accessible on variety kind of device, Netflix was
quick to spread around the globe, reaching international subscribers.
Their headquarter is located in “Los Gatos, California” and they also have offices in the
Netherlands, Brazil, India, Japan, and South Korea. Netflix is expanding its international
footprint with the launch of a fully staffed Paris bureau, its third European outpost after
Amsterdam and London. The Paris office will kick off with about 20 employees, some of whom
are already working for Netflix in Amsterdam, and others who will be new hires.
Netflix is available almost worldwide except in mainland China, Syria, North Korea, Iran,
and Crimea. Before 2010, Netflix was only available in United States, and 50 countries in 2015.
By 2017 Netflix was available over 190 countries and Today Netflix have over 139 million paid
users worldwide, including 60.55 million in the U.S and over 148 million users total including
free trials. Netflix’s worldwide growth is a big factor in the company’s good outcome.

Netflix’s success and Management


Netflix did not attempt to move into all markets at once. But it carefully selected its first
nearest market in terms of geography and psychic distance, or perceived differences between
markets. For example, its earliest international expansion, in 2010, was to Canada, which is
geographically close to and shares many similarities with the United States. Thus, Netflix was
able to develop its internationalization potentiality in places where the questions of foreignness
were less serious. In doing so, the company learned how to expand and enhance its core
capabilities beyond its home market.
Netflix had many unique challenges and globalization strategy to overcome. Netflix had to
secure content deals in many region and country. It also must face a diverse set of national
legal/law-based restrictions, such as those that limit what content can be made available in
local markets. Many of the International subscribers are not fluent in English and they often
prefer their local-language programming. Now Netflix is focused on adding more languages and
subtitles optimizing its personalization algorithms for a global library of content, and expanding
its support for a range of device, operation, and payment partnerships.
Aspects of Netflix’s Culture 
• Values are what they Value
At Netflix, they don’t just have value
statements that are esoteric and only look
good on paper. Instead, their values are skills
and behaviors that they seek in people when
making hiring and promotion decisions.
• High Performance
They understand the importance of high
performers and don’t tolerate anything less.  
• Freedom & Responsibility
They give employees freedom and make
them responsible. Netflix found that if they
merely asked employees to rely on logic and
common sense instead of strict rules, then
the majority of the time they get better
results at a lower cost.
• Context, not Control 
Managers are encouraged to set a strategy, define metrics, clearly define roles, and be
transparent around decision-making rather than making unilateral decisions and focusing more
on planning and less on results.
• Highly Aligned, Loosely Coupled
Netflix’s general mentality is to have very clear strategies and goals across the company and
within teams. Along with this, they give greater trust to teams and departments so there are
less cross-department meetings and micromanagement.
• Pay Top of Market
For a top-performing employee, the mentality is to pay them more than another company
would, pay them as much as a replacement would cost, and pay them as much as they would
pay to prevent them from going to a competitor.  

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