Milestone Five: Assumptions and Contingency Planning of Netflix

Assumptions and Contingency Planning for Netflix Elite

The most significant assumption is that Netflix Elite will use a model similar to Netflix's. The company must adopt this model to use its reputation as a platform to launch itself. The areas where Netflix dominates will be perfect locations for the new line. There are issues when advancing the venture in new markets. Markets with a dominant entity with a vast market share will require different tactics. Netflix Elite can adopt a model where the company collaborates with local players to increase competitiveness. It is an ideal solution to the problem of cultural backlash that Netflix could have otherwise experienced. Contingency plans and the assumptions in the project are documented.

Assumptions

The primary assumption is that Netflix Elite will use the infrastructure of Netflix. It has a vast infrastructure of information technology resources all over the world. The IT resources are used in delivering content to customers using the internet. Another assumption is that all policies, rules, and regulations for various zones are complied with. Netflix Elite will target customers globally because it will launch everywhere after piloting is completed. It is assumed that cultural diversity will be prioritized in Netflix Elite. It ensures that reception of the platform will be excellent and position it for superior targeting.

Using partner entities in some countries is assumed to follow strategic partnerships. It is assumed that any changes made by Netflix Elite on collaboration will be justifiable. The assumption is that company will work with partners who share similar corporate objectives. Netflix Elite will comply with economic and telecommunications policies set up in the regions it will operate in. Social and ethical standards and considerations will be integrated into its operations. The assumption is that representation of cultural issues for the company will be consistent with the local structures.

Cross-Cultural, Economic and Geopolitical Factors

For a global entity, Netflix Elite will maneuver various structures while delivering services. Economic policies, politics, telecommunications, culture, and competition, are the company's main factors (Gregory, 2021). The company will position itself as a critical player in the film industry. Therefore, it must set up practical and efficient mechanisms to counter the challenges faced. Pricing is an optimal way to integrate differences in operations, but other approaches can be helpful. Strategic partnerships, alignment with laws, and integration of cultural components to operations will be integral to success. Some of the factors that will impact the operations of Netflix Elite are outlined in the three categories.

Economic Factors

Taxation, pricing, and piracy are the significant economic factors that will impact Netflix Elite and its operations. Taxation laws are very crucial to the pricing model of the company. Taxation differs from one sovereign region to another based on the economic models of the region. The level of taxation and taxable components will significantly impact the pricing strategy. Countries are expected to be critical stakeholders in the undertaking. The laws passed in the countries will need to be complied with. Economic policies aim to improve nations, but some can be detrimental to the company.

Currency exchange rates will also be a factor considered in pricing Netflix Elite. Piracy by torrent websites is the main problem all streaming services like Hulu, Amazon Prime, and Netflix face. It is expected to be no different on Netflix Elite. It must be prepared to make radical changes to counter existing challenges. With all economic factors, the problem will be how the company adjusts to compensate for the difficulty in service delivery. Higher pricing will be experienced in regions with many unfavorable economic models.

Geopolitical Factors

Every region has a dominant player that can impact how Netflix Elite will operate. How those entities respond to the issues will dictate the venture's success. Politics and a few other politically-motivated decisions are central to how the company will operate in various countries. Governments and regional entities like the European Union will significantly impact the company's operations (Onyusheva & Baker, 2021). Currently, most limitations driven by politics have been countered by adopting different and efficient pricing. The pricing of Netflix Elite will seek to eliminate these challenges where possible to ensure consistency. Using local partners where the platform may not perform optimally will be crucial to success. In addition, they can help the company tread the political issues that dictate other elements like taxation and policies.

Socio-Cultural Factors

Cultural representation is a significant issue in the movie industry. Companies use art to communicate and represent culture and social issues. Entities in the film industry often have a problem balancing delivery, accuracy, and entertainment. Variations in cultural norms will dictate the pricing and operations and the reception of the company. Perception and transitions are the main components that will dictate the operations and success of Netflix Elite. There has been a growing trend of people transitioning to streaming services from conventional media. Despite a general increase in the sizes of television sets globally, people use smartphones as primary streaming devices (Rao et al., 2011). It impacts how the company differentiates itself and positions its services. As the central aspect of operations for Netflix Elite, the company must adopt idealistic approaches to managing social and cultural components.

Legally and Ethically Compliant Environment

Legal and ethical compliance of Netflix Elite will be integral to its operations. Other issues like taxes, exchange rates, protectionism, and culture impact how the company will deliver services. It will also affect the pricing of services and other operations-related issues. However, ethics and legal frameworks should be considered. Copyrights, intellectual property rights, and ethics are the critical components that Netflix Elite should consider. The company's objective is to deliver top-notch quality services to its customers. Doing this will require the company to be stable and well-structured.

A proper structure and governance in place will be essential to operations. It is assumed that Netflix Elite has reviewed all necessary policies and laws of the regions it will operate in. The laws of different countries and territories vary. The company should be ready to deal with issues in its structure and service delivery with compliance (Maddodi, 2019). It is assumed that Netflix Elite will use the resources and structures of its parent company, Netflix. However, the introduction of new strategic partners may alter these standards. It is assumed that the platform will align with legal and ethical models regardless of the approach to market entry. The alignment requires that Netflix Elite understands the legal and ethical frameworks it operates.

Stakeholder and Customer Diversity

The main stakeholders of Netflix Elite are the customers, directors, producers, actors, and strategic partners. They dictate both operations and business processes directly and indirectly. It is expected that diversity will be the most significant component for all stakeholders. They originate from different countries with different cultures (Jenner, 2018). It is a complex endeavor to put together teams and stakeholders from various backgrounds. It is even harder to integrate cultures in operations, but it is crucial to success. Success for Netflix Elite hinges on how it will manage people from various backgrounds and their cultures.

Customers will be from different age groups and social models/classes. They dictate its operations because the leading company has structured itself to coexistence. Adopting this model in Netflix Elite will be a good start. There are inconsistencies in customer relationship management at Netflix that will need review and update in the Elite platform. Engagement with customers and inclusivity are crucial. It will be helpful in planning and implementing the Elite platform. It will ensure that sensitive personal, ethical, and cultural components are not violated.

Corporate Social Responsibility

As a media company in the film industry, the assumption is that Netflix Elite will help in initiatives to improve global unity. The company is expected to help align different people and their cultures. It is a plan to integrate people but in the right way. Cultural and environmental conservation are the primary concerns of the film industry. Netflix Elite intends to go the extra mile and integrate inclusivity. All players in the film industry are expected to uphold high moral codes and standards, especially for content for the younger age groups. Representing cultures should be accurate, respectful, or both.

The company should acknowledge the differences and align itself accordingly. Inclusivity is vital in Netflix Elite because it is a function of integration and diversity in many aspects. The company will respect all cultures and related issues. It will also assume that people have little to no knowledge of other cultures. Insights, variables, and parameters established will be integrated into the service delivery. The company will be responsible for accurately depicting cultures and people who practice them regardless of the entertainment value.

References

Gregory, A. (2021). Complete Analysis of Netflix, Inc.

Jenner, M. (2018). Netflix Marketing: The Binge and Diversity. In Netflix and the Re-invention of Television (pp. 161-182). Palgrave Macmillan, Cham.

Maddodi, S. (2019). NETFLIX bigdata analytics-the emergence of data-driven recommendation. Srivatsa Maddodi, & Krishna Prasad, K.(2019). Netflix Bigdata Analytics-The Emergence of Data-Driven Recommendation. International Journal of Case Studies in Business, IT, and Education (IJCSBE), 3(2), 41-51.

Onyusheva, I., & Baker, A. S. (2021). NETFLIX: A CASE STUDY ON INTERNATIONAL BUSINESS STRATEGY DEVELOPMENT. The EUrASEANs: journal on global socio-economic dynamics, 6(31), 40-52.

Rao, A., Legout, A., Lim, Y. S., Towsley, D., Barakat, C., & Dabbous, W. (2011, December). Network characteristics of video streaming traffic. In Proceedings of the seventh conference on emerging networking experiments and technologies (pp. 1-12).