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Expansion of Netflix into Western Europe Essay

Project id 1012367
Subject area Writing
Document type Essay
Words 1902
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Summary This report features US-based online subscription television shows and films service provider, Netflix's plan to expand into Germany, France, Austria, Belgium, Luxembourg and Switzerland this past year (Edwards 2014). Europe's wide broadband penetration coupled with powerful middle class and effective billing systems poised as an attractive marketplace for Netflix. Netflix also known that to successfully permeate across the goal markets, they would have to tailor their online content library according to local cultural. The provider's previous expansions had been successful in-lined using their goal of attaining worldwide online dominance (Edwards 2014). Application of theories Netflix is a classic illustration of 'Disruptive Innovation' since it exemplifies how a technological vision transformed the sector (Halal 2012). According to Christensen (2008), the disruptive innovation interrupts the trajectory by initially providing an inferior performance to existing merchandise and working out a market segment which wasn't or couldn't be appreciated earlier. The uprising of both Netflix disrupted and exerted enormous strain on Blockbuster Inc. which eventually filed for insolvency (Zalewski 2013). Netflix mostly falls under Radical Change at the Trajectories of Industry changes since core resources and core activities of the organization are always under battle (McGahan 2004). As the entire business model of Netflix surrounds the online technologies, raising dangers of malicious access by external hackers and cyber scams may lead to damages of their organization's reputation and dampened expansion rate because of customer's cautiousness (Clough 2011). A frequent kind of social engineering technique called 'Pretexting' invents a situation to affect vi...

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