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Netflix-A-Case-Study-in-Organizational-Change-and-Structure-2022

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78 views8 pages

Netflix-A-Case-Study-in-Organizational-Change-and-Structure-2022

Uploaded by

satyamdubey1530
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Netflix: A Case

Study in
Organizational
Change and
Structure (2022)
In 2022, Netflix, the global streaming giant, embarked on a period of
significant organizational change and restructuring, driven by factors such
as increased competition, declining subscriber growth, and the need to
adapt to evolving consumer preferences. These changes aimed to improve
operational efficiency, enhance content creation, and position Netflix for
continued success in a rapidly changing entertainment landscape.

by Satyam Dubey
Declining Subscriber
Growth and Competitive
Pressure

1 Loss of Exclusive 2 Password Sharing


Content Concerns
The streaming market has Netflix has struggled to
become increasingly address the issue of
crowded, with companies password sharing among
like Disney+, HBO Max, and subscribers, which has
Amazon Prime Video negatively impacted
offering their own libraries revenue generation.
of high-quality content.
This increased competition
has made it more difficult
for Netflix to retain
subscribers and attract new
ones.

3 Rising Production 4 Shifting Consumer


Costs Preferences
The cost of producing high- Consumers have become
quality content has increasingly demanding,
continued to rise, putting seeking more diverse and
pressure on Netflix's personalized content,
margins. further fueling the need for
adaptation.
Organizational
Restructuring: A New Era
for Netflix
Layoffs and Cost Reduction
1
In response to these challenges, Netflix announced a
series of layoffs and cost reduction measures, impacting
approximately 150 employees across various
departments.

Refocusing on Core Strengths


2
The company decided to prioritize its core strengths,
including content creation, user experience, and
technology, while streamlining operations to improve
efficiency.

New Management Structure


3
The restructuring involved changes in management
structure, with a greater emphasis on accountability and
performance-driven decision-making.
Content Strategy: Expanding the Horizon
Increased Focus on Investing in Original Licensing Agreements
International Content Content
Netflix has explored licensing
Netflix has placed a stronger emphasis The company continues to invest agreements with other studios and
on international content production, heavily in original content, developing distributors to expand its content
leveraging local talent and stories to a diverse portfolio of shows and library and offer greater variety to
broaden its appeal. movies across various genres. subscribers.
Addressing Password Sharing and Revenue
Generation
Introducing Paid Account Sharing

1 Netflix implemented a paid account sharing feature, allowing subscribers to share their accounts with additional
members for a fee.

New Subscription Tiers

2 The company launched new subscription tiers, offering different pricing options based on the number of screens
allowed simultaneously and the quality of streaming.

Targeting Different User Groups

3 Netflix aims to attract a wider range of subscribers through tailored subscription options, catering to various
needs and budgets.
Technological
Advancements and User
Experience
Enhancements
Personalized Interactive Content
Recommendations The company has expanded its
Netflix's algorithm has been offerings of interactive
refined to provide more content, allowing viewers to
personalized influence the storyline and
recommendations based on make choices that impact the
user preferences, improving narrative.
content discovery and
engagement.

Enhanced User Technological


Interface Innovations
Netflix has made The company continues to
improvements to its user invest in technological
interface, optimizing advancements, such as
navigation, search capabilities, advanced compression
and overall usability for a technologies and improved
seamless streaming streaming infrastructure, to
experience. enhance the quality of the
streaming experience.
The Future of Netflix:
Embracing Change and
Innovation
Focus on Growth Expanding its global reach and
attracting new subscribers in
emerging markets

Content Innovation Investing in original content,


including interactive
experiences and immersive
formats

Technological Advancement Improving streaming quality,


optimizing user experience, and
integrating AI and machine
learning

Adapting to Consumer Staying ahead of consumer


Preferences trends and offering diverse
content that meets the
demands of a changing
audience
Lessons from the Netflix
Case Study

Embrace Change and Develop a Robust


Innovation Strategy
Organizations must be agile and A well-defined strategy is crucial
adaptable to thrive in rapidly for navigating challenges and
evolving markets. achieving long-term success.

Leverage Data and Foster a Culture of


Analytics Collaboration
Understanding consumer Collaborative efforts and a strong
preferences, market trends, and team culture are essential for
internal performance data is vital successful organizational change.
for informed decision-making.

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