ABOUT THE CASE: Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the production of in-house content. In January 2016, to deal with slow growth in the domestic market, the company announced an aggressive expansion of its services into a total of 190 countries, thereby giving Netflix coverage over nearly the entire world.
Netflixs international expansion did not come without its challenges. Netflix faced regulatory compliance issues in its targeted markets, competition with domestic competitors, and the need to satisfy local preferences. Was the enormous cost of such an aggressive expansion strategy the right direction for the company?
Case Study Questions
Describes the pros and cons of Netflixs international expansion strategy.
How would you recommend that Netflix overcome its challenges in the international market?
Moving forward, what future strategic initiatives might CEO Hastings consider?
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