Netflix maintains some competitive advantages over other competition that might also enter the international market. Even though Netflix considers cable, movie rental/purchase businesses, and other online streaming media providers as its main competition, their style of providing online streaming media is significant different than the rest. For this reason, we strongly believe that Netflix command a first-mover advantage in the online streaming media industry which has already proved to have served them while in existing and thriving markets such as North America.
Netflix also has a competitive advantage over its competition through its use of a unique user-friendly, convenient, and personalized experience to watching direct content. The service is easy to use and allows for unlimited streaming of their licensed content whereas most other providers have limitations or are more difficult to use. Finally, Netflix realizes its economies of scale through its massive amount of subscribers and its continuous overall growth rate. Because of this they are
…show more content…
Joint ventures can be pursued and allows Netflix to share the costs and risks of opening in a foreign market but Netflix risks giving control of its proprietary technology to its partner who may become a competitor. Conflicts between both firms within a joint venture may also arise. Licensing is another option for Netflix to consider as it offers benefits such as avoiding development costs and any risks associated with opening in a foreign market. However, jus like joint venture, Netflix runs the risk of losing control of the business operations and possibly intangible technologies. Wholly owned subsidiaries are an attractive alternative to entry because the risk of losing control of business operations is significant reduced. However, the firm would bear the full risk and costs associated with setting up independent