NETFLIX IN INDIA: THE WAY AHEAD

Analyze The Level of Competitiveness in the SvoD Industry in India Using Porter’s Five Forces Model?

Netflix is mainly objected at offering the most extensive and expensive shows while upholding the changing consumer’s preferences. The company has acquired a sustainable advantage for years based on the fact that it offers variety (Hitt, Ireland & Hoskisson, 2016).

Threat of New Entrants

In India SVoD industrial entrants threats are medium. The movie and filming industry in India is well organized but there is intensifying competition in regard to online streaming which is expected to rise further in the future. The threats of those that are getting into the market are average given that the fresh entrants are the existing indirect operators that are attracted into the market by the intensifying demand (Hitt, Ireland & Hoskisson, 2016). However, the well-established companies such as Netflix enjoys a significant market share thus sustaining their competitive positions in the industry. There are several websites that are engaged in the online streaming market but most of them have already been established adequately (Hitt, Ireland & Hoskisson, 2016). In addition, the entry level barriers are minimal but the entrance is affected by the establishment of the popular websites.

Buyers Bargaining Power

The general bargaining power of buyers is quite high given that companies have several options to choose from. Based on the international model that encourages variety and diversity websites such as Netflix, which offers the consumer with higher bargaining influence. On the ground that several alternatives to opt because consumers are only loyal to the offered content rather than the provider. In addition, the cost is a major determining force given that consumers are becoming sensitive to prices as well as quality (Hitt, Ireland & Hoskisson, 2016).

Substitutes Threat

Substitute’s threat is quite moderate. In that, the threats are only subjected by the established companies which have acquired significant shares in the market. Most of the companies are involved in providing downloading options which, therefore, creates fewer threats in the Indian market.

Supplier’s Power

Despite the fact that the online streaming consists of minimal suppliers the bargaining authority of the suppliers is quite high. In that, the suppliers take advantage on the ground that the consumers have fewer options. Majority of Netflix content is usually acquired from licensing deals and the majority of the suppliers provide downloading options which challenge the performance of the market (Hitt, Ireland & Hoskisson, 2016).

Rivalry among the Existing Competitors

The rivalry in the market is average. With the growing number of fresh ventures into the digital industry, the segmentation of the market is decreasing rather rapidly. In this context, the established companies are involved in attempting to sustain their shares while focusing on the needs of the market. The market is evolving which creates a considerable rivalry.

Based on your analysis, list what you feel are the most important factors that will impact Netflix’s success in the Indian market? Explain your reasoning.

In my own opinion, the forces that are likely that might affect the performance of Netflix in India is the rivalry, increased consumer power and supplier power. In that, the consumers have more power on the ground that they have several platforms to make their selection. On the other hand, the supplier’s authority affects the performance of Netflix in that it is required to operate under high expenses which will, in turn, affect its general productivity (Markides, 2008). Despite the fact that the rivalry in the market is minimal its impact cannot be ignored given that this is expected to increase in the near future based on minimal legal limitation in regard to entry.

 

 

 

 

 

 

 

 

 

 

 

 

 

References

(n.d). Netflix in India: The Way Ahead. Pdf.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic Management. Boston, MA: Cengage Learning.

Markides, C. (2008). Game-changing strategies: How to create new market space in established industries by breaking the rules. San Francisco, CA: Jossey-Bass.