Strategic Analysis of Netflix in India. Possible Strategies and Recommendations (PDF)

Case Study from the year 2020 in the subject Economics - International Economic Relations, grade: 1,3, New York University - Leonard N. Stern - School of business, language: English, abstract: The paper focuses on strategic issues of the management of Netflix in India, pointing to the following key question: How can the company adapt its business model to gain a foothold in the Indian market? Should the company conduct acquisitions to deal with the situations? Or should Netflix exit India and shift focus to other global markets instead?

Netflix, a leading American online media streaming and production company, expanded successfully across the globe in the 2010s. However, in India-a very important market for Netflix due to its large population and strong demand for video streaming-Netflix seems to be struggling. Dominant competitors and specific customer requirements have made growth difficult for the firm.

In this case, both Netflix and the Indian video streaming market are analyzed, with several strategic options are compared. The team of authors recommends purchasing local studios and production houses, so that Netflix can continue to pursue its verticalization strategy and meet local consumer demands. We also suggest Netflix adapt its price to appeal to more users, as Indian users are generally more price-sensitive. While it might dilute Netflix' premium brand, we believe such risk can be mitigated by adopting a more bare-bones, lower-cost subscription targeting the large number of Indian consumers who use their smartphones to access the internet.