Netflix Organizational Change- Organizational Change Examples

Netflix Organizational Change, Organizational Management Change Examples. Netflix change management model and organizational change examples.

Table of Contents

  • Netflix Organizational Change
  • Background of the Netflix Company
  • Netflix Organizational Change History
  • Reason for the Netflix Organizational Change
  • How Netflix Handle the Forces of Organizational  Change
  • Also, Conclusion and Takeaway.

Netflix Organizational Change Example

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 the computer, smartphone, and social media. Some of them have managed to cope with the force of change by applying sophisticated strategies as well as accepted the 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 the 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. They have achieved competitive advantages for adopting new features as per audience demand.

Netflix Organizational Change

Background of the Netflix Company

Netflix has become one of the most popular American production companies all over the world. It was established in 1997 by Marc Randolph and Reed Hastings in California (Maddodi, 2019). In 1998, the official website was introduced with 925 items available to rent for pay per month approach and with only 35 employees (Maddodi, 2019).

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 contribute to entertain a huge amount of 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 managed to establish its office globally including in Brazil, the Netherlands, France, the United Kingdom, Japan, India, and South Korea (Maddodi, 2019). In 2020, it is estimated that Netflix owns over 195 million subscribers globally who are involved with 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 (Voigt, Buliga & Michl, 2017). 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 (Voigt, Buliga & Michl, 2017). This change has been accepted by consumers. It is believed that the launching of video streaming service has become the prime business pillar of income. Recently, Netflix changed from HTTP to HTTPS encryption the website in order to ensure the privacy of the viewer (Reed & Kranch, 2017).

Reason for the 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 by 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 practising 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 allow people to watch movies and television series on computers and smartphones. The authority of Netflix realized that consumers do not like to store video (Voigt, Buliga & Michl, 2017), so they change the business model. Additionally, Netflix is always aware of the approaches of competitors. Blockbuster is a key competitor of Netflix, 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 Forces of Organizational  Change

Organizational change refers to the adjustment and transformation of the way a company operates. The company brings a minor or major change to improve productivity as well as 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 behaviours. For example, technological change and globalization are the main external forces that compel Netflix to change the feature. New technology changes people’s expectations and behaviours; therefore, it is important to change the features, tools, and patterns of the company product or service. 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 a change in managerial personnel, work climate, effectiveness, employee expectation, and crisis. Netflix realized that the service of watching the movie at home will definitely 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 for changing its business model in order to fulfil 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 fulfil 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

References
  • Corfield, J. (2017). Network vs. Netflix: a comparative content analysis of demographics across prime-time television and Netflix Original Programming.
  • Maddodi, S. (2019). Netflix Bigdata Analytics-The Emergence of Data-Driven Recommendation.
  • 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).
  • Voigt, K. I., Buliga, O., & Michl, K. (2017). Entertainment on demand: The case of Netflix. In Business Model Pioneers (pp. 127-141). Springer, Cham.

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/

Tourism Article: Importance of Travel and Tourism Articles, Why Tourism Article is Written

Tourism Article: Importance of Travel and Tourism Articles, Why Should We Write Tourism or Travelogue Article. The tourism article is one of the writings that are compelling to read. Our opinion on why the tourism article is written.

Tourism Article

The tourism article is also known as a travelogue feature that refers to the article writing the explanation of traveling guidelines for the journey (Bird, 2012). People travel for various perspectives such as personal business, job purpose, multicultural immigration, curiosity, and adventure. It is one of the best articles for recreation and entertainment.

“Traveling – it leaves you speechless, then turns you into a storyteller.” – Ibn Battuta

According to Rob McFarland (2007), photos are very inevitable elements for the tourism features to make them interesting and vivid for audiences. You need to follow some instructions when adding photos inside articles including people’s images, use the rule of thirds, put something in the foreground, fill the frame, and use a frame.

Example of the travelogue feature

  • What to see MILAN in ONE DAY
  • You must see AGRA RED FORT INDIA

Importance of Travel and Tourism Articles & Opinion why tourism article is written

1. Guidelines for new travelers

A tourism article represents the best assistant for new travelers who want to visit new places with no previous experiences. A perfect tourism article always provides ample guidelines on how to travel the place. For example, new travel gets a clear idea about how to get there, where to stay, and how to complete missions in a cheap budget. Travel guidelines will save money and stop wasting time. Sometimes travelers cannot see all spots because of less time, so traveling guidelines help those people to see all spots within a short time with providing effective instructions.

2. Hobby

It is our habit to share experiences, so people always try to share their experiences with others through face to face communication or mediated communication with websites or social media. Traveling is a passion for many people, and they visit new places and share their experiences with us. They feel good when sharing it and be encouraged to visit more places.

3. Job and Duty

In addition to the freelancer blogger, many journalists write a travelogue feature for their duty of jobs. The journalist along with his or her family is dependable on this profession. They earn money from writing tourism feature writing. A big number of people all over the world deepen on this profession directly or indirectly. They visit the new places to enjoy the beauty of the scenario and collect ample information and finally publish an article for expecting visitors.

4. Commercial purpose

Tourism has become a great source of income for many countries, so they publish tourism articles to attract new travelers to visit the places. Government and non-government organizations are associated with these activities to increase learning revenue through tourists. For example, Malaysia’s tourism revenue reached an all-time high of 22,009 USD MN in Dec 2014 (Kamarudin, 2013). Malaysia’s government publish tourism article to attract travelers from all over the world to come here. In addition to that, few non-government organizations such as hotels and airline companies publish travelogue articles as part of their marketing policy.

 5. Entertainment

Many readers just like to read a travelogue article for recreation to refresh the mind. Reading a noble is bearing sometimes for the long story but travel article is short with an adventure story. Hence, they chose this short story for entertainment, and the author writes them to entertain audiences. So, it is clear that tourism article is not only suitable for travelers but also readers who like to read-only.

6. Providing information

Tourism article is an outstanding medium for disseminating information about the history of the place, location, transportation opportunity, culture, traditions, strengths, and weaknesses. This is the only way to know about the background information of the location to make preparations for visiting. In addition, it will let you know about the weather, temperature, and cautions. So, the prime objective of the travelogue article is to inform others about the basic information of the location. For example, you need to check the temperature of japan for taking warmer clothes if you want to visit. You will get ample information about japan from a travel article.

Conclusion

Tourism feature writing has become a very important article for its positive impact on travelers. Based on our discussion it is safe to say that tourism article is only important for travelers but also general people who like to read the article. Nobody can deny the advantages of tourism articles for traveling purposes.