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Case study
Publication date: 15 September 2020

Jitender Kumar, Ashish Gupta and Sweta Dixit

The case study illustrated strategic, marketing, financial and operational challenges faced by Netflix in India's growing SVoD market. This case is appropriate in courses…

Abstract

Learning outcomes

The case study illustrated strategic, marketing, financial and operational challenges faced by Netflix in India's growing SVoD market. This case is appropriate in courses such as Strategic Management, Business Strategy, Marketing Management and International Marketing for postgraduate MBA students, other graduate-level management programs and undergraduate-level students. The case was developed to raise awareness among students, to understand the complex nature of the technology-driven industry, to survive in the highly competitive market, to set up a company that serves the huge Indian market. This case delves into the dynamics of marketing on the Indian market, characterized by unorganized players such as local cable television; torrent downloads and organized and established players, low digitalization rates, language barriers, low internet penetration, lack of infrastructure, price-sensitive consumers. Due to up-gradation in technology, internet penetration, an increase in smartphone users, and the market has undergone a notable amount of change, due to a lot on new entrants, competitions, substitutes. The case states various obstacles, for a multinational company while entering the market such as India and how they are required to strategize, mold their marketing mix, need to analyze en-cash their strength, overcome their weakness, take maximum advantage of opportunities and modify their strategies to face huge challenges. The specific learning outcome of the case will help students to understand the strategy that multinational companies can adopt to sustain, compete in emerging countries such as India and within that emerging market such as streaming videos on demand (SVoD). This case will help students to understand the importance of internal and external resources, which help multinational companies to make strategies based on these resources. The case study offers learners the opportunity to explore the strategy in a dynamic environment. This case also highlights the critical issues that should be addressed by multinational companies when entering into a foreign market. The case highlights the importance of analyzing the competitive environment in which it’s going to compete and sustain. It can be used to introduce Ansoff’s growth matrix, internal and external factor analysis and porter’s five forces in the delivery of course for both regular and executive programs. The case should be offered in the middle term periods of the course. Additionally, the case could be used in marketing courses to indicate the importance of scanning the business environment in marketing activities for any organization. The case illustrates the strategies that companies can undertake to expand the market, introduce new products, as per the requirement of business environment and concerns linked with innovating approaches to support the organization to satisfy a larger number of price-sensitive consumers from varied backgrounds.

Case overview/synopsis

Netflix has been optimistic about the potential growth of the Indian market. It will grow slowly and gradually and become profitable. The SVoD market in India has been price sensitive. There are no plans for cheaper prices. Netflix had a long way to go. The pricing model of Netflix was a hurdle in its growth, but the future of Netflix in India was bright. There have been numerous challenges in terms of government regulations, pricing structure and an increase in the number of competitive players on the market. Netflix believed that Indian audiences enjoyed “Bollywood” film productions but watched low-quality soap opera content on television. Television audiences were a massive untapped market for their brand of original, exclusively produced content. Can Netflix come up with a marketing and growth strategy, or else they might be looking to lose market share and revenue. Should a new product such as Amazon and MI fire stick be introduced in the existing market like their competitors? Should they enter the existing market with existing products, or should they seek a new market in India, such as the rural market, the Pyramid market, the Tier II market and the City III market? Should they diversify into a new market with new products? How Netflix should plan its market communication if it wants to launch a new product or if it wants to reposition its existing product. Netflix had to rethink its strategies and also needed to address these issues so that they could travel smoothly on Indian roads. High marketing budget and aggressive promotions helped Netflix India to make a profit in its first year.

Complexity academic level

Postgraduate MBA students, other graduate-level management programs and undergraduate-level students.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 11: Strategy.

Details

Emerald Emerging Markets Case Studies, vol. 10 no. 3
Type: Case Study
ISSN: 2045-0621

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Article
Publication date: 1 November 2006

Edward Castronova

Macro goals: To alert the telecommunications policy community to the emergence of persistent online worlds as a communications and policy issue. Also to provide game

Abstract

Purpose

Macro goals: To alert the telecommunications policy community to the emergence of persistent online worlds as a communications and policy issue. Also to provide game industry decisionmakers with solid economic research on which to base policy decisions. Third, to connect these two communities to each other, for mutual benefit. Micro goals: to conduct a solid cost‐benefit analysis of a knotty problem in game economics: what to do about people who break the rules and use real money to buy game items (swords, wands, gold pieces, etc.)

Design/methodology/approach

Traditional cost‐benefit analysis. Consumer surplus analysis of externality effects, with a parameterized estimate of effects sizes.

Findings

Real‐money trading acts as a negative externality on the game subscription market. Seems likely to amount to several million dollars per 100,000 users per year.

Research limitations/implications

The effects sizes are simulated only. More data from the game industry are needed before one can put a solid dollar estimate on them. Also, much of the material in the paper had to be really elementary in order for the results to make sense for both policy economists and game industry analysts.

Practical implications

The analysis indicates a prima facie case for public policy intervention to help shield synthetic worlds from the deleterious effects of the global gold farming industry.

Originality/value

Interest in real‐money trade in gaming is growing, as indicated by the extent of online discussion by gaming scholars. Despite this, the literature on the economic and policy issues raised by the topic is limited. The article is an original piece of work that takes understanding forward.

Details

info, vol. 8 no. 6
Type: Research Article
ISSN: 1463-6697

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Article
Publication date: 1 June 2010

Malcolm Wright and Erica Riebe

The purpose of this paper is to test whether brand defection shows double‐jeopardy effects, and whether stochastic models provide useful benchmarks of expected brand…

Abstract

Purpose

The purpose of this paper is to test whether brand defection shows double‐jeopardy effects, and whether stochastic models provide useful benchmarks of expected brand defection rates.

Design/methodology/approach

The approach takes the form of an empirical study of brand defection in four markets using panel data, comparing the performance of simple OLS models with a stochastic model.

Findings

Brand defection shows double jeopardy. Almost all brand defection in the markets studied could be explained by the category examined and the market share of the focal brand. A stochastic model of choice fits these data well, and provides many further practical and theoretical applications.

Practical implications

The study provides improved benchmarks for brand defection, allowing managers to spot whether their brand is performing better or worse than expected. It also allows better analysis of market structure for subscription services, especially under dynamic conditions, and better estimation of customer lifetime value when defection rates are not known for all brands.

Originality/value

The paper closes a gap in the brand defection literature by showing that a given level of defection is a natural characteristic of any market, subject to within‐market variations dominated by market share. Recent work has overlooked these points, resulting in unrealistic goals for customer defection programmes and inefficient estimates of customer lifetime value. The paper also provides a method of defection analysis that can be deployed by numerate managers and market researchers, and used as a basis for further academic work.

Details

European Journal of Marketing, vol. 44 no. 6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 March 2004

Adam Lindgreen

Few published empirical studies have examined the design, implementation, and monitoring of customer relationship management (CRM) programmes at a practical level. The…

Abstract

Few published empirical studies have examined the design, implementation, and monitoring of customer relationship management (CRM) programmes at a practical level. The article develops a single embedded case study on Dagbladet Børsen (http://www.borsen.dk), the largest publisher of business‐related materials in Scandinavia. The article first introduces the reader to the philosophy behind CRM. Following that, it considers key areas of a four‐year long CRM programme and offer insights into the procedure that has been developed by SJP (http://www.sjp.dk), the consulting firm that was brought in to assist. The procedure is organized around eight areas: commitment of senior management, situation report, analysis, strategy formulation, implementation, management development, employee involvement, and evaluation of loyalty‐building processes. Over the four‐year long CRM programme, Dagbladet Børsen increased its newspaper circulation by 40 per cent and advertising revenue by 50 per cent, while total revenue more than doubled.

Details

Marketing Intelligence & Planning, vol. 22 no. 2
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 31 May 2011

Richard Lee, Cam Rungie and Malcolm Wright

The purchase distribution of consumer packaged goods has been extensively modelled by the negative binomial distribution (NBD). As the characteristics of packaged goods…

Abstract

Purpose

The purchase distribution of consumer packaged goods has been extensively modelled by the negative binomial distribution (NBD). As the characteristics of packaged goods differ from those of subscription services, the latter may be a boundary condition for NBD. In this study, the authors aim to test whether NBD extends to a subscription service. Also, NBD assumes non‐heterogeneous purchase behaviour. The authors determine whether augmenting the model with a covariate (customer tenure) to account for consumer heterogeneity will produce a better fitting model.

Design/methodology/approach

Phase 1 fitted a base NBD model using a random set (n=1,546) of mobile‐telecommunication consumption (monthly billed amount). Phase 2 extended the base model by incorporating customer tenure as a covariate, and re‐fitting the model.

Findings

NBD does apply to subscription markets. Also, accounting for heterogeneity in customer tenure produces a better model fit, and shows that with increasing tenure individual consumption declines but total consumption increases due to fewer light buyers.

Research limitations/implications

The NBD fit suggests that mobile‐telecommunication consumption is habitual, and casts doubt on the effectiveness of marketing programs such as loyalty programs to spur the consumption. The fit also establishes that NBD can serve as a benchmark against which the effects of marketing actions can be evaluated. A potential limitation is the continuous, rather than discrete, nature of the service consumption data.

Originality/value

By extending NBD's boundary condition, this study further attests to the model's robustness in modelling purchase behaviour. It illustrates the technique of augmenting the model with marketing covariates to improve model fits.

Details

Journal of Product & Brand Management, vol. 20 no. 3
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 7 June 2019

Damien Wilson and Maxwell Winchester

This study aims to understand the market structure and explore the applicability of recognised generalisations to a European wine retail market. The study considers…

Abstract

Purpose

This study aims to understand the market structure and explore the applicability of recognised generalisations to a European wine retail market. The study considers whether brands in European wine retailing follow the established double jeopardy and duplication of purchase laws, with the aim of investigating their limits so as to identify where market partitions are evident.

Design/methodology/approach

The researchers conducted a cross-purchasing analysis within the wine category over a 12-month period, using a customer panel of n = 25,000 across a chain of independent retail stores in an English-speaking European country. Analysis was conducted across purchases of the top 20 wine brands.

Findings

Consumer wine repurchase results confirmed a double jeopardy pattern. These consumers’ wine repurchasing behaviour from other top-20 wine brands could have generally been predicted in line with the duplication of purchase law. However, a small number of exceptions to these patterns were identified, suggesting the existence of market partitions.

Research limitations/implications

In this study, market partitions were evident for selected brands, a wine region and a common grape variety, Sauvignon blanc. Such exceptions illustrate that consumer purchase patterns can deviate from predictions, for a small number of brands in a consumer goods category than would be expected given duplication of purchase law norms. Such anomalies to empirical generalisations help demonstrate boundary conditions and lead further research on the market conditions required for such anomalies to be evident. Implications suggest that further research should be conducted on the product features creating market partitions.

Practical implications

The findings suggest that regional wines can appeal to a more clearly partitioned customer group within the clientele, but that substitution is noted among brands within regions.

Originality/value

To the best of the authors’ knowledge, this is the first study to use a large sample consumer database to determine the generalisability of two well-established empirical generalisations: the double jeopardy and duplication of purchase laws, to the wine retail market. Knowing these are applicable to the wine retail markets allows wine producers and retailers to predict expected repurchase and cross-purchasing norms.

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Article
Publication date: 1 December 1998

Campbell McPherson

This paper is concerned with the destruction of European Union policies which would have resulted in the development of a Single European Market in satellite television…

Abstract

This paper is concerned with the destruction of European Union policies which would have resulted in the development of a Single European Market in satellite television, and the lost opportunities for European business and consumers resulting from this. The focus of the paper is on the technical sector involving the transmission of satellite television programmes directly to the viewer’s home (DTH) and is concerned with the broad sweep of lost business opportunities and consumer benefits; there is no attempt to quantify any such losses. The term “consumer” is used in the paper in the loosest welfare / opportunity cost sense of one who gains access to desired goods and services including the simple act of sitting in front a television and watching a programme. “Businesses” are considered to be profit orientated organisations which may function within or outside the law. Whilst the main thrust of this paper is upon the British environment and consumers, the findings also have significant implications for businesses and consumers outside of the UK.

Details

European Business Review, vol. 98 no. 6
Type: Research Article
ISSN: 0955-534X

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Abstract

Details

Innovation Africa
Type: Book
ISBN: 978-1-78560-310-5

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Article
Publication date: 30 May 2008

Maxwell Winchester, Jenni Romaniuk and Svetlana Bogomolova

The paper seeks to conduct an exploratory study into how positive and negative brand belief levels differ before, and change after, consumers defect from a brand or take…

Abstract

Purpose

The paper seeks to conduct an exploratory study into how positive and negative brand belief levels differ before, and change after, consumers defect from a brand or take up a new brand.

Design/methodology/approach

Two longitudinal studies in banking and insurance were used. These included repeat interviews with the same consumers. Brand buying behaviour and positive and negative brand beliefs were measured and then compared across those who defected from a brand and those who took up a new brand.

Findings

Prior to defection, differences in both positive and negative perceptions were apparent in those who subsequently defected. There was also evidence of a readjustment after defection to match the new user status. There was evidence that this readjustment did not just occur in the behaviour change period, but continued to occur afterwards, with differences over time much greater for the longer time frame interview than evident for the shorter time frame. Negative beliefs were more discriminating when the defection was customer‐initiated rather than during a renewal process. New brand users displayed a higher propensity to give positive beliefs prior to taking up the brand compared to non‐users who did not take up the brand. These changes further continued post‐switching as new users adjusted to their new status.

Originality/value

This research contributes to the understanding of the brand belief‐behaviour relationship using two very different longitudinal studies. It also investigates negative brand beliefs, which are rarely researched, and compares the effects of negative beliefs with that of positive beliefs.

Details

European Journal of Marketing, vol. 42 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 14 September 2015

Stephen Pinfield

The purpose of this paper is to provide an overview of one of the most important and controversial areas of scholarly communication: Open Access publishing and…

Abstract

Purpose

The purpose of this paper is to provide an overview of one of the most important and controversial areas of scholarly communication: Open Access publishing and dissemination of research outputs. It identifies and discusses recent trends and future challenges for various stakeholders in delivering Open Access (OA) to the scholarly literature.

Design/methodology/approach

The study is based on a number of interrelated strands of evidence which make up the current discourse on OA, comprising the peer-reviewed literature, grey literature and other forms of communication (including blogs and e-mail discussion lists). It uses a large-scale textual analysis of the peer-reviewed literature since 2010 (carried out using the VOSviewer tool) as a basis for discussion of issues raised in the OA discourse.

Findings

A number of key themes are identified, including the relationship between “Green” OA (deposit in repositories) and “Gold” OA (OA journal publication), the developing evidence base associated with OA, researcher attitudes and behaviours, policy directions, management of repositories, development of journals, institutional responses and issues around impact and scholarly communication futures. It suggests that current challenges now focus on how OA can be made to work in practice, having moved on from the discussion of whether it should happen at all.

Originality/value

The paper provides a structured evidence-based review of major issues in the OA field, and suggests key areas for future research and policy development.

Details

Online Information Review, vol. 39 no. 5
Type: Research Article
ISSN: 1468-4527

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