Netflix in India: The Way Ahead

Name: Netflix in India: The Way Ahead
SKU: 9B17M033_P

Tripti Ghosh Sharma; Suraj S; Mitali Srivastava; Tarun Chandoke; Prachi Prakash

Product #:9B17M033_P

Supplier:Ivey

Discipline:General Management, International Business

Setting:India, 2016

Details:Case (PDF) • 13 pages • 2017-02-22

Subjects:

Business management International business Leadership and managing people Management

Geography:

India Asia

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Netflix, Inc. (Netflix), the world’s leading provider of subscription video on demand (SVoD), launched its Indian platform on January 6, 2016. Due to its huge population, India represented a lucrative market. Furthermore, the younger generation in India had dynamic consumption patterns that were comparable to those of Western consumers, giving Netflix another reason to invest in the country. However, six months after Netflix’s launch in India, as the initial buzz surrounding the entry subsided, important questions loomed: Would the company be able to meet the diverse needs of Indian consumers? Was the Indian market and consumer seasoned enough to adopt a more sophisticated model of SVoD? How could Netflix get a stronghold in a market that was still grappling with basic infrastructure problems and low Internet penetration, as well as censorship issues? Even though Netflix was a formidable player globally, it was not the first mover in the Indian market and many of its competitors were already doing extremely well. How could Netflix compete and move forward in India?

Learning Objectives

This case is suitable for use in MBA and other graduate-level programs in courses on industry analysis, intercultural marketing, evolution of business models, comparison of existing business models, competitive positioning, appraisal of existing competition, and implications for consumers. After completion of this case, students will be able to better understand and analyze

the competitive dynamics and possible strategic choices for the company to address multiple challenges;
the strategies already adopted by Netflix, and whether the chosen business model in India has the potential to take on the existing competition in the SVoD industry;
the sustainability of Netflix's chosen model;
the vast diversity in terms of language, culture, and socioeconomic conditions in the market;
the impact of other hurdles like competitors, censorship, and a lack of infrastructure on growth potential; and
the application of various models such as Porter’s five forces, SWOT, VRIO, and PESTEL to plan a strategy for the company to penetrate the Indian market.