Netflix Organizational Change, Organizational Management Change Examples. Netflix change management model and organizational change examples. Background of the Netflix Company, Netflix Organizational Change History, Reason for the Netflix Organizational Change. Also, How Netflix Handles the Forces of Organizational Change.
Netflix is an online video streaming platform that provides many categories of movies, TV shows, documentaries, and so more. The user can watch all these videos through a subscription service. Netflix adds new movies, series, and TV shows regularly to the chart so that subscribers can watch them instantly. It has managed to secure its position within the top 50 websites, following Google, YouTube, Yahoo, Facebook, Twitter, etc. So, Netflix is the most popular video streaming site or web portal in the world.
Organizational Change Examples
Netflix is one of the best examples of organizational change. It accepts the changes to cope with the new environment. Netflix organizational change is a real-life example of Lewin’s change model. Every organizational change has few stages of completing the entire process. The most significant factors are technology, culture, and environment that stimulate an organization to accept the change. Netflix Organizational Change has replaced the old procedures with new strategies to adjust to the current situation. So, Netflix is the most prevalent example of organizational change. Additionally, Indian software companies Wipro, Infosys, Samsung, and Amazon accept organizational change to achieve a competitive advantage.
Netflix Organizational Change
Technology has changed the world in many ways, including education, business, sports, entertainment, etc. Many worldwide renowned companies have been closed due to the revolution of new technology such as computers, smartphones, and social media. Some have managed to cope with the force of change by applying sophisticated strategies and accepting organizational change.
Netflix is one of the best examples that had changed its business model and strategy to survive. It has handled the force of organizational change to achieve a competitive advantage. Hence, it has become one of the most popular video streaming platforms for netizens. Netflix started its business by selling DVDs and rentals by mail. In 2007, Netflix introduced a new video streaming feature for films and television series. The proper utilizing of the force of change has helped to achieve success. However, it is believed that Netflix is one of the most popular platforms for watching new movies, drama series, TV shows, and so more. They have achieved competitive advantages for adopting new features as per audience demand.
Netflix has followed the blue ocean strategy to achieve a competitive advantage. Blue ocean strategy refers to creating a new business market; whereas, red ocean strategy refers to contesting to beat the opponent companies in the same market. Blue ocean strategy introduced a new feature to attract the customer that creates a unique and uncontested marketplace. Finally, Netflix has accepted the blue ocean strategy and become one of the successful companies around the world.
Background of the Netflix Company
Netflix has become one of the most famous American production companies all over the world. It was established in 1997 by Marc Randolph and Reed Hastings in California. In 1998, Netflix introduced its official website with 925 items available to rent for pay per month approach and only 35 employees.
Netflix launched its operation with the first and largest online DVD rental store. Since 2012, Netflix is producing and distributing its original content, including film and television series that entertain many viewers. This variety of contents has been stored at the online library for viewing by the subscribers. Since 2016, it is providing services in around 190 countries. This company has established its office globally, including Brazil, the Netherlands, France, the United Kingdom, Japan, India, and South Korea. In 2020, it was estimated that Netflix owns over 195 million subscribers globally involved in paying a monthly payment.
However, Netflix is available worldwide except in China, Syria, and North Korea. According to a report in 2020, Netflix has achieved $1.2 billion operating income for its outstanding performance with sophisticated features.
Netflix Organizational Change History
Netflix made two major changes since its launch. At first, it opened the subscription option in 1999 to store DVD rental. It was the first change in the business model in the history of Netflix. This change allows consumers to rent unlimited DVD rental without late fees. Later, in 2007, Netflix made its second change by launching an online video streaming service. Consumers have accepted this change. It is believed that the launching of video streaming services has become the prime business pillar of income. Recently, Netflix changed from HTTP to HTTPS encryption to ensure the viewer’s privacy (Reed & Kranch, 2017).
Purpose of Netflix Organizational Change
According to Corfield (2017), Netflix is becoming famous day by day for its easy accessibility quality and sophisticated features. After all, the new technology adoption and adaption is an inevitable approach to exceed customer demand. In the 21st century, people do not want to allocate extra time to go to the cinema hall. People used to go to the cinema hall to watch new movies before introducing the service of watching movies at home on Netflix. New technology, including a computer, laptop, and smartphone, entertain people easily through internet service. In addition, the social media revolution changed the way we communicate with each other. It has become a great platform for sharing user-generated content, including photos and videos. Now, many citizen journalists are practicing democratic journalism because of the social media revolution.
Most people globally use social media in many perspectives, such as education, entertainment, and marketing. Netflix’s authority had perceived the upcoming market demand. Therefore, they have changed the business model to watch movies and television series on computers and smartphones. The management of Netflix realized that consumers do not like to store video, so they change the business model. Additionally, Netflix is always aware of the approaches of competitors. Blockbuster is a crucial Netflix competitor; hence, they added a new feature to become distinguished from competitors. The reason for changing the business model of Netflix was appropriate and effective to bring success.
How Netflix Handle the Organizational Change Forces
Organizational change refers to the adjustment and transformation of the way a company operates. The company brings a minor or significant change to improve productivity and cope with the new context. There are two types of forces of change in a company such as external forces and internal forces.
The element of the external forces is technological change, globalization, social and political change, and managing ethical behaviors. For example, technological change and globalization are the primary external forces that compel Netflix to change the feature. New technology changes people’s expectations and behaviors; therefore, changing the company product or service’s features, tools, and patterns is essential. Netflix handled the forces of change effectively to bring success and prosperity to the company. Apart from that, internal forces influence the organization to change, such as changing managerial personnel, work climate, effectiveness, employee expectations, and crisis. Netflix realized that watching the movie at home would reduce the entertainment budget and time; therefore, they accepted the organizational change.
Conclusion and Takeaway
Netflix started its journey as an ordinary company, but it has achieved a competitive advantage by changing its business model to fulfill customer demand. The authority of the company changed its feature to cope with new technology. It has made two changes in 1999 and 2007. However, the video streaming service brought huge popularity and income for the company that launched in 2007. Based on the discussion, the author has determined some takeaways that can be a key point for any company. Firstly, it is very important to change the company feature to fulfill customers’ expectations.
Additionally, digital adaption and adoption need to be accepted for both employee and customer’s gratification. Finally, sophisticated features and tools have to be added to the company for better function, such as Netflix launched its online video streaming feature in 2007. “The measure of intelligence is the ability to change” -Albert Einstein
- Corfield, J. (2017). Network vs Netflix: a comparative content analysis of demographics across prime-time television and Netflix Original Programming.
- Reed, A., & Kranch, M. (2017, March). Identifying HTTPS-protected Netflix videos in real-time. In Proceedings of the Seventh ACM on Conference on Data and Application Security and Privacy (pp. 361-368).
Citation for this Article (APA 7th Edition)
Kobiruzzaman, M. M. (2021, January 30). Netflix Organizational Change: Organizational Management Change Examples. Educational Website For Online Learning. https://newsmoor.com/netflix-organizational-change-organizational-management-change-examples/