UGANDA MARTYRS UNIVERSITY-NKOZI

COURSE: ENTERPRENUERSHIP AND INNOVATION

YEAR OF STUDY: III
SEMESTER: TWO ACADEMIC YEAR: 2023/2024
DATE: 20TH JUNE 2024
GROUP ASSIGNMENT

NAME REGISTRATION NUMBER

NASSAKA BENITAH 2021-B071-11460

MIREMBE JOSEPHINE 2021-B071-11250
SANDE DEBORAH 2021-B071-12264
MAYIGA PAUL 2021-B071-11466
BUSUULWA HASSAN 2021-B071-13536

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 1. Strategy process: This is a continuous culture of appraisal that a business adopts to
outdo the competitors
Netflix’s strategy process has evolved significantly over time, and the company has become
known for its innovative approach to content creation and distribution. Initially, and has
focused on providing a subscription-based streaming service, which allowed users to watch
TV shows and movies on-demand. The company’s strategy was centered on offering a wide
selection of content, including both licensed and original programming.
As Netflix continued to grow, the company recognized the need to differentiate itself from
competitors by producing high-quality, exclusive content. This led to the development of a
more comprehensive strategy, which included investing heavily in original programming and
leveraging data analytics to create content that resonated with its audience.
Netflix’s approach to the strategy process can be described as data-driven and
customer-centric.
1. Data-Driven Decision Making:
• Example: Netflix extensively uses data analytics to understand viewer
preferences and behavior. By analyzing vast amounts of data, including
viewing habits, search patterns, and user ratings, Netflix can identify trends
and predict what content will resonate with its audience. This data-driven
approach helps Netflix make informed decisions about content creation,
acquisition, and recommendation algorithms.
.
2. Personalized Recommendations:
• Example: Netflix leverages data to provide personalized recommendations to
its users. Through sophisticated algorithms, Netflix suggests movies and TV
shows based on a user's viewing history, ratings, and even the time of day they
typically watch. This customization enhances the user experience by offering
content that matches individual tastes and preferences. And Users are more likely to engage with
the platform when they receive personalized recommendations, leading to increased viewer
satisfaction and
retention.
.
3 Content Creation and Investment:
• Example: Netflix uses data analytics to guide its decisions on original content
creation and investment. By analyzing which genres, actors, or themes are
trending among its subscribers, Netflix can allocate resources towards
producing content that is likely to attract a large audien For instance, Netflix identified a growing
interest in fantasy series among its subscribers. This insight prompted the development of
original content like "The Witcher," which was strategically adapted from a popular
book and video game series. The series' success was bolstered by Netflix's
data-driven approach to understanding audience preferences.
Strengths of Netflix’s strategy
Its ability to leverage data analytics to inform content decisions. By analyzing user behavior
and preferences, the company can identify trends and create content that appeals to its
audience. This approach has been highly successful, as Netflix has produced numerous hit
shows and movies that have attracted millions of viewers worldwide
.
Data-Driven Decision Making: Netflix leverages data extensively to understand viewer
preferences, which informs content creation and acquisition decisions. For instance, the
success of "House of Cards" was based on data showing interest in political dramas and
Kevin Spacey's popularity.

Global Expansion: Netflix's aggressive expansion into international markets has broadened
its subscriber base and diversified revenue streams.
Challenges associated with its strategy process.
The competition in the streaming market, which has led to a more saturated
landscape. Rivalry from established players like Amazon, HBO, and emerging local
competitors in various.
To maintain its position, Netflix must continue to innovate and produce high-quality content
that sets it apart from its competitors.
Another challenge is the need to balance the company’s growth with profitability. As Netflix
expands its subscriber base, it must ensure that it can generate sufficient revenue to support
its content creation efforts. This requires a delicate balance between investing in new content
and maintaining profitability.

2. Disruption of the U.S. Home Entertainment Industry

Innovation Strategy Over Time: Netflix disrupted the industry by:

• Business Model Innovation: Introduced DVD-by-mail subscriptions, then transitioned

to streaming, challenging Blockbuster's store-based model.
• Content Strategy: Invested in original content creation, leveraging data analytics to
produce shows with high viewer engagement.

Changes in Business:

• Shift to Streaming: Moved away from DVD rentals to online streaming, capitalizing on
advancements in broadband technology.
• Global Expansion: Expanded internationally, adapting content to local markets while
maintaining a cohesive global brand.

Business Model Innovation and Technology Strategy:

 • Netflix's subscription-based model supported its technology strategy by enhancing user
experience through personalized recommendations and seamless streaming capabilities.
• Investments in technology infrastructure (e.g., Open Connect) optimized content
delivery, ensuring high-quality streaming globally.

3. Netflix’s Core Competencies

• Content recommendation to users based on their viewing habits through sophisticated
algorithms and vast user data.
• The subscription model provides a recurring revenue stream for investment in original
content.
• Streaming Technology which Netflix has invested heavily in building a high-quality
streaming platform that delivers content smoothly across various devices
• Original Content Creation Netflix has become a major producer of high-quality
original content, differentiating itself from competitors.
How can they help Netflix to sustain its competitive advantage?
• A strong recommendation system keeps users engaged and reduces customer churn
(cancellation of subscriptions).
• High Customer Satisfaction Due to reliable and high-quality streaming platform leads
to satisfied subscribers.
• The subscription model provides a steady cash flow to fund content acquisition and
creation (Predictable Revenue.)
• High-quality original content attracts new subscribers and keeps existing ones engaged.
How must its core competencies be honed and modified?
Content recommendation

• Refine Algorithms: can further refine its recommendation algorithms to personalize

content suggestions even more, considering factors like time of day and mood.
• Incorporating a human touch by offering curated collections or recommendations from
experts alongside algorithmic suggestions.

Streaming Technology:

• Content Delivery Networks (CDNs): Invest in robust CDNs to ensure smooth streaming
even in areas with limited bandwidth
• Offline Viewing Improvements: Enhance the offline viewing experience by allowing
users to download content in higher resolutions or for longer durations.
Subscription Model:
• Consider offering different subscription tiers with varying features like content
resolution, number of simultaneous streams, or access to exclusive content.
• Explore alternative payment options which are flexible like regional or carrier billing to
cater to a wider audience.
Original Content Creation:
• Produce content that resonates with a global audience, considering cultural nuances and
international co-productions.
• Expand beyond popular genres to cater to niche interests and attract new demographics.
 • Experiment with interactive elements like choose-your-own-adventure stories to provide
a more engaging user experience

4. Netflix’s Growth in the African Market

Increasing Demand in Uganda:

• Partner with Local Studios: Collaborate with Ugandan production studios to create high-
quality originals that resonate with local audiences.
• Dubbing & Subtitling: Offer a wider selection of content dubbed or subtitled in local
languages (Swahili, Luganda, etc.) to overcome language barriers.

• Affordable Pricing Strategies: Adjust subscription prices to align with local purchasing
power while offering value-added services.
• Local Content Acquisition & Production: Investing in Ugandan or East African movies and shows
would cater to local tastes and build cultural connection with subscribers.

Future Growth Services:

• Flexible Payment Options: Offer alternative payment methods beyond credit cards, such as
mobile money platforms widely used in Uganda (MTN Mobile Money, Airtel Money)
• Strategic Partnerships: Partner with local telecom operators to offer bundled
subscriptions or data packages that incentivize subscribing to Netflix.
• Local Marketing Campaigns: Develop marketing campaigns that resonate with
Ugandan audiences, leveraging local celebrities, social media influencers, and culturally
relevant themes.
• Free Trials & Introductory Offers: Provide limited-time free trials or introductory
offers to entice new users and showcase the value proposition of Netflix.

• Offline Viewing: Improve the offline viewing experience by allowing users to download
content for longer durations or in higher resolutions. This is especially valuable in areas
with unreliable internet connectivity.
• Bandwidth Optimization: Implement features that optimize streaming for slower
internet connections, ensuring a smooth viewing experience even with limited bandwidth.