Discuss about the Competitive Strategy for Google and Netflix.
Google was founded by Larry page and Sergey Brin in the year 1998. The company deals in products such internet services, computer software and hardware. The company serves the worldwide market. Sunder Pichai is the current CEO of the company. The company’s mission and vision statements are focused on collecting world’s information and presenting them on a universally accessible platform. Google began its story in a garage today the company’s headquarters are in California, USA known as Googleplex. Googleplex is big office campus spread over an area of 3.5 million square feet (Google, 2017). Today Google is the market leader in its respective industry. Major products of the company are Google maps. Google chrome, Google play store, YouTube etc.
The credit for Google’s current success can be credited to continuous innovation and employee friendly practices, acquisitions and clarity & simplicity in structure. Innovation is key factor driving the success for the organisation. The company spends huge amount on research and development. It also empowers its employees to be creative and innovative. The company always implements innovative ideas to create better product the competitors. For company financial requirements are never an issue it has enough capital to spend in implementing innovative ideas. The company works according to three ideas first step is implementing innovative ideas, the next is getting the real user data and the third is monetizing (Beattie, 2015). The next key feature that is responsible for current market position of the company are its employee friendly practices the company takes a really good care of its employees. It offers facilities such as on site laundry, Wi-Fi, food, doctors, fun activities in the office, free haircuts, paid maternity leaves and lot more. The company believes that that happy workforce can only turn to productive workforce. The company always welcomes the ideas and opinions of employees. This created a committed workforce (Dhar 2015). The company’s success is also credited to its acquisitions. Till now Google has bought over 180 companies. Its largest acquisition was the phone making brand Motorola. Other major acquisitions of the firm were net labs and you tube. The Google strategically plans its acquisitions to be ahead of the competitors (Hooker, 2016). The Google has clarity in its structures. The employees are clear about the task that they are expected to perform. The organisational structure is also not a formal kind therefore less complex. Also the reason for such a large market share is simple user platform. Google provides simple platform to its customers which is easy to use. It not only provides simplified products or services it also provides quality products to its customers. The market tactic that proves most fruitful for the company is worldwide open access. Google provide its various products free of cost. Google also earns a sustainable amount of revenue from Google ads. This facility of Google has helped advertisers, bloggers, customers and the company itself. Out of all the above stated reasons Employee empowerment and innovation are two major contributors of success. Company is known for its innovative products and employee empowerment practices across the world.
Netflix was established in the year 1997 by Reed Hastings and Marc Randolph. It is an American entertainment company. The company’s current headquarters are in Los Gatos, California. Today Netflix is the leading television of the world. The company is divided into three basic segments domestic streaming, international streaming and domestic streaming. It is spread over 190 countries with around 104 million networks. The company provides 24/7 access to TV shows and movies including documentaries, feature films and original series. It provides members the facility to enjoy watching without any commercials and commitments. Netflix is a leading player in entertainment industry (Netflix, 2017).
Today Netflix serves 190 countries. Reaching to this level is not an easy task. There are many factors that contribute to the success of Netflix. Netflix has a culture guide for its employees it is a kind of constitution. Netflix tries to a work culture that promotes innovation and creativity it the organisation. Employees in Netflix are always encouraged and given required freedom for good work. One of the major innovations of the company is replacement of static poster images with the custom-created preview videos. As the user scrolls over the title card these videos are automatically played (Bigspeak, 2017). Another major reason for the company’s success is good relation with the content providers. The company aims to build up long term and profitable relationships with the service providers. For companies in same industry as Netflix it is very essential to maintain good skills with the employees. Netflix have mastered this skill (Fast company, 2017). Another major factor responsible for impressive growth of the company is analysing customer wants by doing research. The company focused on determining what its customers actually needs. Netflix aimed to maintain a well-researched brand position. It was the key step to be ahead of the competitors. Before taking any decision the executives always though t whether this will make consumer experience happy or not. The research always helped to enhance market share and get the strategic guidance (Bariso, 2015). Another major factor responsible for success was timely grasping of opportunity. When the company was established in 2000 it was not possible to steam movies over 56 k connections. So during that phase company went for DVD distribution and planned for household connection of 14 mb per second by 2012. Timely improvements in the technology have helped the company to grasp market opportunities. The firms pricing strategy was also a competent factor which helped it to gain more. The firm always went to value based pricing. The company believed that customers will only come back if they find value for company’s product. The company always tried to make the products and services an easy buy for the customer. The company always believed that on changing the strategy to the profitable one. Netflix believes that adopting a strategy that you find is working well may not be able to provide long term direction but will be able to provide short term competitive advantage. All the above stated factors were responsible for the current market standing of the firm.
Bariso, J., 2017. What Your Business Can Learn From Netflix, viewed on 22 August 2017 from https://www.inc.com/justin-bariso/the-secrets-behind-the-extraordinary-success-of-netflix.html
Beattie, A., 2015. The Story Behind Google's Success, viewed on 22 August 2017 from https://www.investopedia.com/articles/personal-finance/042415/story-behind-googles-success.asp
Bigspeak, 2017. Netflix: A Success Story – Words of Entrepreneurial Wisdom from the Founding Team Members, viewed on 22 August 2017 from https://www.bigspeak.com/netflix-a-success-story/
Dhar, N., 2013. Top 10 Secrets Behind The Success of Google , viewed on 22 August 2017 from https://topyaps.com/top-10-secrets-behind-the-success-of-google
Fast company, 2017. Why Netflix is one of the most innovative companies of 2017, viewed on 22 August 2017 from https://www.fastcompany.com/3067462/why-netflix-is-one-of-the-most-innovative-companies-of-2017
Google, 2017. From the garage to the Googleplex, viewed on 22 August 2017 from https://www.google.co.in/about/our-story/
Hooker, L., 2016. How did Google become the world's most valuable company?, viewed on 22 August 2017 from https://www.bbc.com/news/business-35460398
Netflix, 2017. About Netflix, viewed on 22 August 2017 from https://media.netflix.com/en/about-netflix