5/22/2022

STRATEGIC
MANAGEMENT

Name – Min Thant Kyaw Swar

Student Code – S001393A
Batch Code – BAM 03-20
Table of Contents
Introduction.....................................................................................................................2
Brief Explanation of the two organizations......................................................2
Comparisons of capabilities.....................................................................................2
VRIO FRAMEWORK.......................................................................................................2
Comparisons of Value Chain framework between Netflix and Disney
plus (D+)...........................................................................................................................4
Market Position..............................................................................................................6
TOWS Matrix....................................................................................................................7
Objectives.......................................................................................................................10
Netflix’s 2023 Activity Plan....................................................................................10
Netflix’s 2023 implementation plan...................................................................11
Time plan (Gantt chart)............................................................................................13
Reflection upon Strategic Management............................................................13
Conclusion.......................................................................................................................14
Works Cited...........................................................................................................................15

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Introduction
SM (strategic management become important for organizations in the market
since it can sustain the specific target within the formulation of plans and the
achievement of objectives to get more market share for the organizations. This
report will be evaluated based upon the performance of the Netflix organization by
underlining competitive advantages, position in the market, strategic planning, and
in this report D+ (Disney Plus) will be mostly showcased since D+ is fast growing
streaming platform through the assessment from online the Walt Disney launched
their new platform.

Brief Explanation of the two organizations

Netflix
As in accordance with (Netflix , 2022), Netflix is an organization which is
based upon American digital entertainment corporation which is established in 1997
by renting DVD now offers a subscription-based program including various types
of movies and TV programs by using internet. Netflix switched from domestic to
worldwide streaming digital service in 2016 by expanding the licensing and also
the production of Netflix exclusive content all over the world.
Disney plus (D+)
Disney+ is a digital streaming service which is established newly from Walt
Disney.  At their digital streaming platform, viewer can watch many exclusive
contents, movie and show from Disney, Marvel and Pixar and other many exclusive
contents. Walt Disney established D+ by the year end of 2019 to bring plenty of
fresh and spectacular content to audience all over the world (The Walt Disney
Company, 2022)

Comparisons of capabilities

VRIO FRAMEWORK
Competitive disadvantage CD, Competitive parity CP, Temporary competitive
advantage - TCA, Unexploited competitive advantage - UCA and Sustained
competitive advantage – SCA, Yes- ✓, No- ✕

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 Resources Netflix Disney +

Organizational

Organizational

Competitive
Competitive

implications
implications
Imitability

Imitability
Valuable

Valuable

Support
Support
Rarity

Rarity
Innovation ✓ ✓ ✓ ✓ SCA ✓ ✕ ✕ ✓ CP
Brand Equity ✓ ✓ ✓ ✓ SCA ✓ ✓ ✓ ✓ SCA
Global ✓ ✓ ✕ ✓ TCA ✓ ✕ ✕ ✓ CP
Presence
Market Share ✓ ✓ ✓ ✓ TCA ✓ ✕ ✕ ✓ CP
User Base ✓ ✓ ✕ ✓ TCA ✓ ✕ ✕ ✓ CP
Product Mix ✓ ✓ ✓ ✓ SCA ✓ ✕ ✕ ✓ CP
Leadership ✓ ✓ ✕ ✓ TCA ✓ ✓ ✕ ✓ TCA
Team
Distribution ✓ ✓ ✓ ✕ UCA ✓ ✕ ✕ ✓ CP
System
Licensing ✓ ✓ ✕ ✓ TCA ✓ ✓ ✕ ✓ TCA
Exclusive ✓ ✓ ✕ ✓ TCA ✓ ✓ ✓ ✓ SCA
Content
Development
Content ✓ ✓ ✓ ✓ SCA ✓ ✓ ✓ ✓ SCA
Production
Financial ✓ ✕ ✓ ✓ TCA ✓ ✕ ✓ ✓ TCA
Statement
Marketing ✓ ✕ ✓ ✓ TCA ✓ ✕ ✓ ✓ TCA

Table (1) Netflix’s and Disney +’s VRIO Framework

As in accordance with the above table, each corporation has a variety of
benefits and profit. While Netflix has grown primarily interest for the result of
ongoing technical advancement, as for Disney+, they're still the streaming platform
service which was created to response the changes of the external environment

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(Pratap, 2022)). (The Walt Disney Company, 2022). The value and image of the
Netflix keep higher since they are one of the oldest digital streaming platforms and
have royal audience and also the organization release exclusive content depending
upon the culture of the regions. So, the process of market penetration is one step
more distant from the other organizations. But for the Disney+ they are opposite
with the Netflix, as they provide exclusive content to the audience by contracting
with giant studios like Marvel, Pixar and Disney originals. Netflix gains significant
global expansion from their digital streaming platform, which is now licensed
over 190 countries (Stoll, 2022) since Disney+ is only accessible around 59
countries (Disney Media & Entertainment Distribution, 2022).  This happen because
Netflix established subscription-based platform by the year end of 1998 and Disney
launched their subscription-based platform at 2019, which is only just 4 years old.
So, Netflix have larger audience which gives a lot of competitive advantages not
only in short-term but also for the long term. And they produce exclusive contents
depending upon the country regions to get more engagement from the citizens. 
Despite this, Disney+ also have benefits unlike Netflix since they have high-profile
franchised studios like Pixar Animation, Marvel, National Geographic and others.
Both Netflix and D+ provide various subtitles depending upon the user's region and
language setting which is for the global audience.  Even though both companies
offer their services at their specific platforms such as ios, android and other digital
devices, some films and contents still can get with Disc in Blu-ray version from
Netflix (Gebel, 2022)While Netflix make progressively licensing old TV series and
exclusive content project to expand their original content inventory, Disney+ is
expected to be successful as they’ve made a lot of investment and contract with the
giant studios.   As a result, Netflix has a sufficient lot of episodes and diversity to
ensure that their customers become a part of regular habit.

Comparisons of Value Chain framework between Netflix and Disney plus (D+)
This model is essential for every business for the competition in the market
to get one step ahead from the competitors. This below figure of value chain
structure is created by Michael Porter in 1985.

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 Figure (1) Value Chain Framework
This system will be used to analyze certain key points. After the creating the
new exclusive TV programs, Netflix has upgraded their efficiency for inbound
logistics and also for the content accretion and granting.  Netflix creates some
changes and improvement from their user’s interface by utilizing a database from
the consumer preferences to make it more efficiently and effectively. Netflix
securely encrypted to prevent privacy and give subtitles to every of their content
programs with proper languages depending upon the users’ location and region.
Netflix make competitive benefits in the market by publishing a full episode in a
whole season at once from their digital platform by boosting the encourage of the
users who would like to watch binge-watching at their free time. Netflix now offers
three categories of monthly subscriptions such as basic, standard, and premier,
with better quality resolutions by upgrading the subscription plan to have
more improvements (Netflix , 2022) Netflix also invests a huge amount of
financial on their exclusive content and also make investment for the external
consumer loyalty in order to expand international market.
In the streaming platform, potential organization like Disney (D+) must
have to clash with Netflix, which have about 200 million users. In addition, the
content selection of D+ is less than Netflix's. As Disney brand and its multiple
properties, Disney+ have enough budget and energy to produce unique content and

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creativity. Even though D+ got strong favorable brand image, organization still
targeting lower age people with content like, cartoons, and televisions series
which are used to popular among children at 90s (Sturgill, 2019). As a result,
those offered entertainment will not satisfy and give interest to the audience.
Disney’s still cannot compete in the digital streaming industry by generating
interest with their exclusive content. Even-though Disney+ is cheaper than Netflix,
their merchandise product from the organization brand is still in high cost (Casano-
Antonellis, 2022). Consumers can't afford to pay for all of Disney's market. So,
Netflix still the organization which leads in the digital streaming platform industry. 

Market Position

Figure (2) BCG Matrix

As in accordance with above figures. Netflix is experiencing significant
market growth from the users in US as the Netflix have got the largest proportion
in the global digital streaming platform. Netflix technology and quality of the user
experienced are still at the top between worldwide streaming platform. Both Netflix
got the highest amount of users in the market of local, and also got a sizable
foreign market segment in the global market (Stoll, Statista, 2022). Netflix, the
creator of the exclusive content, has taken down all of its opponents in

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the streaming platforms. Stranger Things, Witcher, and all of us are dead and squid
game are exclusive content from the Netflix and all of those contents get success in
both global and local market. 

TOWS Matrix
Analysis for internal environment can show the weakness and strength of the
organization to get achievement and as in external environment it can show the
challenges and prospects for the organization.
Source: Self Illustrated table based upon the market presence of the Netflix

Strengths Weaknesses
 Brand Image  Still can’t get exclusive content in
 Full episode in a whole season every region
 Available in almost every region  Project funds are allocated to
of the world each production
 Strong Financial Project  Raise of depts and costs in
 Worldwide Audience Base operation
 Growth of the market  Shortage of environmental
 Various subscription plans with responsibility movement
affordable prices

Opportunities Threats
 The binge-watching become  Existence of new rivals in same
addicted to the audience industry
 Development of global audience  Free streaming website (example
 Collaboration and cooperation BitTorrent web)
 Netflix exclusive content  Account Hacking and cyber crime
 Government policy
 Global pandemic (Covid-19)

Table 2: Netflix’s SWOT Analysis

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 Internal Factors
Strengths (S) Weaknesses (W)

Opportunities  Create new  Provide

(o) strategy in contents
partnership to available for
have relationship all regions
with the  Join and invest
audiences more in social
 Keep releasing responsibility
Netflix exclusive movement to
content get more
 Make analysis awareness for
and exploration the brand
in the market of image
External Factors

South East Asia  Make more

improvement
at their digital
platform for
the audience
to have better
experience
while using
their platform
Threats (T)  Avoid the  Reduce threat
arguments from as possible as
the local have to they can to
develop more stay one step
exclusive ahead from
contents the
 Make analysis on competitors.
the competitors

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 and also make
development in
security for their
website.
Table (3): Netflix’s TOWS analysis
Netflix is generating high-quality, famous movies and TV shows as well as a
variety of unique and exclusive content for young adults, who are helping to
improve the reputation of the Netflix, So Netflix should form stable regional
partnerships with distributors for the new contents that rely upon unique and
outstanding content to get more attention from new audience or retain existing
ones. With fresh cultural experiences, investing in Asia Pacific regions can make
more special for the organization apart from the rivals in the market. Due to the
organization who refuse to corporate for the organization, it's challenging to assign
licensing for every contents. Nevertheless, it’s a fantastic opportunity for the
organization to make different steps in a fresh market because, to compare
with Disney+, Netflix may be able to generate more characteristic and exclusive
content depending on the culture of the regions. The disadvantages of the Netflix
could be turned into advantages by analyzing the feedback from the market. So,
the organization should expand the number of regions where all of their content
and program can get. And also, the organization should invest more at
their technology platforms and security of the platform. As for the process of CSR,
organization have to join actively social responsibility process to raise the
awareness of the brand in the market.  After the analysis of the organization’s
competitive advantages, the strategy of the Netflix can be provided by using
strategic alternatives from generic strategy in competition and strategy of the
intensive development. Those alternative strategies are demonstrated for the future
plan of the organization evaluated in the Appendix using the SAFe model. Also, the
cost leadership process of Porter Generic can assist the aggressive
development strategy of the organization which focuses on the penetration of the
market, the market penetration plan like Ansoff Matrix and others market
expansion plans become important and essential tactics for the following year.

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Netflix could construct a variety of benefits based on the analytical methods to
increase its market expansion.

Objectives
1. Raise the rate of selling and marketing to maintain and upgrade
the competitive advantages of Netflix by providing the greatest experience to
the audience.
2. To increase business in SEA region by establishing new exclusive content for
those regions.
3. To increase the targeted audience including for children and teen-age people.

Netflix’s 2023 Activity Plan

Objectiv Action Descriptions

e
1 1.1 Make more research to oversea regions and develop
exclusive content and series for the regions all over the
world.
1.2 Update the system of multi-channel marketing for both
internet and offline users.
1.3 Provide customized content to keep customers interested.

1.4 Work with other enterprises in electronic and movie

producers.
2 2.1 Make collaboration with the Nadao Bangkok Firm which is
a Thai media organization and it will expand the
awareness upon LGBT concept.
2.2 Algorithm research data exploration and analysis. 
2.3 Launch strategy for China region.

2.4 Collect data from independent developers, organization

and creators all over the world.
3 3.1 Make more innovative movies in animation

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Netflix’s 2023 implementation plan
Activities Team Time Monitoring Implement
1.1 Executive 6 months Report once a Finish
content month acquisition
manager and and
team from the organization’s
studio transition of
operation exclusive
content
manufacturing
1.2 Arrangement 3 months Have analysis Give decision
and analysis meeting for to selling and
team static report marketing
depend on the
audience
1.3 Chief of 3 months Have analysis Have more
marketing meeting for awareness
executive and static report and loyalty on
Internet the equity of
service the brand
producers
1.4 Executive in 6 months Report once a Established
global film, month new creative
vice executive and exclusive
of TV contents.
operation
team for
worldwide
2.1 Vice executive 2 months Report once a Monitor the
of Asia month transaction of
regions and Netflix’s
strategy for exclusive

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 inclusion production
2.2 Team of data 1 months Meeting on Make
and visionary, Survey Reports strategic
strategy and plans
analysis team
2.3 Team for 6 months Strategic Develop plan,
Planning and planning make
Analysis in conference negotiation
strategy, with authority
Corporate if needed
Legal Team,
and Chief of
Global
Partnership 
2.4 Chief 2 months Report once a Aired
executive of month complete and
the Global exclusive
Television contents and
team and give
Operations promotion for
Department the upcoming
new contents
3.1 Content 4 months Report once a Published new
delivery team month animated
and team series or
of inclusive movies for
strategies lower and
middle age
people.

Time plan (Gantt chart)

Activitie Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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 s
1.1

1.2
1.3

1.4
2.1

2.2
2.3

2.4
3.1

Reflection upon Strategic Management

Strategic Management is the module that I interested while I attending
bachelor in this year. Most of the student faced some difficulties and challenges
while completing our programs because we are still attending our bachelor program
with hybrid teaching system including virtual and face to face teaching system. The
condition of Covid 19 become stable a bit but the political conflict is still happening
and unstable electricity make a lot of difficulties to the students.  Instructors in our
class provide self-study time and provide some reading materials for these
papers which we then analyze in class. We've gained numerous perspectives from
each classmate and we practiced reflective statements from sample assignments
based upon our senior students' analyses. In summary, we have studied a single
stage of examining the weakness and strength of the organization while comparing
with the other competitors. To be honest, I evaluated strategic priorities for the
future of the company that I analyze by using internal and external analysis.
Analyzing ideas with the SAFe framework before providing strategies and
advantages for the performance of the organization.  Furthermore, we must
manage the core skills and ability of the organization. After c completing
this portfolio analysis program on Netflix, I now have a better understanding of how
to analyze growth and development of the organization in a current or
new markets. As a result, I'd like to express my gratitude to this module

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instructors, who shared their valuable information and experiences based upon
their expertise and professionalisms.

Conclusion
Step and action of the Netflix can be used to analyze the growth of the
market output of the organization as in accordance with this portfolio analysis. To
provide a comprehensive strategy, understanding to the competitors are analysis
are also essential for this module. Make analysis externally and internally are also
discussed, single stage of the projected plan. And make reflection upon this course
can help us realize how we gained the experience and knowledge that we had. So,
analyzing on this portfolio is an essential part of strategic planning procedure.

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Works Cited
Netflix . (2022, May 21). Netflix INVESTORS. From
https://ir.netflix.net/ir-overview/profile/default.aspx
Casano-Antonellis, J. (2022, May 18). Disney+ Continues International Expansion. From NEWS
DISNEY+ : https://dmedmedia.disney.com/news/disney-plus-continues-international-
expansion
The Walt Disney Company. (2022, May 20). Disney History. From https://d23.com/disney-
history/
Pratap, A. (2022, May 18). VRIO Analysis of Netflix. From
https://abhijeetpratap.medium.com/vrio-analysis-of-netflix-2a67751f9408
Stoll, J. (2022, May 20). Statista. From Number of Netflix paid subscribers worldwide from 3rd
quarter 2011 to 1st quarter 2022:
https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-
subscribers-worldwide/
Disney Media & Entertainment Distribution. (2022, May 18). Disney official. From
https://dmedmedia.disney.com
Gebel, M. (2022, May 20). INSIDER. From Netflix still mails DVDs — here's how to sign up for
Netflix's DVD Plan, and rent movies with no late fees:
https://www.businessinsider.com/does-netflix-still-mail-dvds
Sturgill, J. (2019). Beyond the Castle: An Analysis of the Strategic Implications of Disney+.
America: East Tennessee State University.
Stoll, J. (2022, May 19). Statista. From Market share of SVOD platforms in the U.S. 2020:
https://www.statista.com/statistics/496011/usa-svod-to-tv-streaming-usage/

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