Netflix Inc.

A Organizational Design presentation

 TABLE OF CONTENTS

01 04
Introduction Culture
1.1 Organizational Evolution 4.1 Competitive Advantage
1.2 Netflix- So far 4.2 Impact on Innovation

02 Organization
Strategy 05
2.1 Mission & Vision 5.1 Global Strategy
2.2 Core valuess 5.2 Decision Model

03 Innovation & 06
Organization Structure Creativity
3.1 Evolution of Structure 6.1 Future Readiness
Organizational Evolution
 Netflix – So far

190 Countries
185 million subscribers
 Mission and Vision
Netflix’s corporate mission is simple and crisp – “To entertain the
world” 
The statement is based on the company’s nature in providing on-demand movie
streaming services as opposed to traditional TV format where members have the
flexibility to play, pause and resume whenever they want.

Its corporate vision is “To continue being one of the leading firms of
the internet entertainment era.”

Netflix’s corporate vision statement has three main points: Continuing

leadership, Internet and Entertainment. 
 Core Values Core Competencies

Integrity Inclusion
Providing customers easy access
to movies and television content.
Selflessness

Communication
Judgement
Offering a large selection of choices
Passion in a subscription-based model.
Courage

Innovation

Impact Convenience of delivery, instant

Curiosity streaming, and no late or return fees
Organizational Structure

• Netflix chooses to
utilize a U-form
structure in order to
effectively manage
its complex and
evolving business.

• Each group acts

independently and
contains its own
support functions.
 Organizational Culture (1/2)
‘People over Process’ philosophy

Competitive Advantage

Hiring Culture Team Culture Employee Feedback

Culture Culture

•Avoiding •Flexibility •No vacation •Brutal Honesty

Superstars • Shared policy • Shifted from
• Focus on team Common • Unconventiona formal review
skills and goals l process to
emotional •Encouraging •Logic and informal
intelligence task ownership common conversations
•People over sense over about
process policies performance
 Organizational Culture(2/2)

Strategic Focus vs Environmental needs Impact on Innovation

Culture

Innovation
People and Technology

Reinvention

Strategy
 Strategy
As per Miles & Stones strategy typology, Netflix can be considered as PROSPECTOR

Phase 1 Phase 2 Phase 3

Product and Technology change Strategy change

service change

Expand to regions Apply the learnings Faster expansion with

that are similar and gained into wide cructial improvement
geographically closer variety of markets in service
customization
 Challenges for Netflix:
Increase in competition New competitors
in Video On Demand entering market like
(VOD) streaming Disney+ , Apple TV
Challenges
New alternatives such Loss on non-owned
as Hulu and Amazon content
Prime
 Decision Model
Netflix follows the Carnegie model for decision-making to deal with industry uncertainty.

Transforming decision-making into a group effort

Involving discussions, with the end goal of making a

good decision

Collating Sound Judgement and arriving at a

Satisfactory conclusion
 Organizational Innovation
Innovation in policies
• Ambidextrous approach towards innovation.
• More inclined towards horizontal than
mechanistic vertical innovation.
• Horizontal helps in creativity and vertical
helps in improving efficiency.
Technology Innovation
• Use of Big Data Analytics , algorithms
• Personalized digital marketing
• Record data of duration of viewership.
Reverse Innovation
• Transfer of innovation from emerging markets to
developed markets.
• Formation of Local Growth Teams who report to
HQ.
• Applying insights gained to developed markets.
Increased Innovation
• Knowledge is shared continuously either through
innovation or glocalization.
• Shared Ideas evaluated and applied.
 Thank You !
Open for Questions