Netflix’s Operations Management and Competitive Priorities

One of the modern illustrations of organizations involved in complex yet successful operations management is Netflix. The firm’s history begins with a startup idea that rapidly progressed into a high technological streaming service with ample profits. The website proposes a myriad of visual content to its customers, such as original series, interactive movies, animes, and novel adaptations. This report concerns the operations leading to the organization’s extraordinary performance and customer satisfaction and competing priorities of the organization.

Netflix’s operations management system is a relatively complicated one concerning the digital market and the interrelated work of numerous employees. First of all, the company cooperates with various external suppliers as well as obtains staff responsible for the delivery of data related to the products that are to be manufactured. Namely, Netflix enters into contracts with content producers and copyright holders of movies, animation series, or games to buy their outputs and release them on its streaming service. To deliver these multiformat informational goods, the organization hires specialists in technologies and marketing. The former people develop and maintain the programs that support the platform’s correct work. As such, Netflix’s content could be accessed on various software, smartphones, TV, and even consoles for video games; tech employees guarantee the possibility of streaming products on these devices. Next, data specialists analyze the market demands to sort the multiple products according to their appropriateness in the service; they decide which outputs should be bought for further processing and streaming (Gupta, 2020). Thus, the suppliers’ material consists of digital content made for further transformation and information about the profitability or effect on the organization’s market.

However, the most significant part of the firm’s operational success depends on the processes involved in further preparing the input materials and information for retailing. The materials produced by, for example, notable video content-specialized organizations or independent studios are examined secondarily by top managers and analysts. They select the most suitable public for consuming the content and start designing strategies for promoting the products. Meanwhile, the technicians provide the successful placement of the movie or series on the Netflix website. Again, managers deliberately construct the system of recommendations for the service customers so that particular products would be suggested to people who might enjoy them. The content is being promoted with attractive designs and advertisements on various social media. Moreover, Netflix creates new markets to deliver its services to a more significant amount of potential customers. The process of selecting the most relevant content for different regions and cultures is maintained by professional managers (Gupta, 2020). Therefore, a large part of Netflix’s operation is related to collecting and applying data to satisfy the consumers’ needs.

Yet, the crucial role of the firms’ delivery is linked to the platform itself. Namely, Netflix proposes several advantageous programs and special offers for its users and newcomers. To begin watching the content on the website, one must enter the system of subscription, which allows a person to access unlimited amounts of materials for a certain period. This feature seems favorable compared to the previously predominant production of DVD or CD-dispersed movies and other entertaining goods. It is possible to choose between exciting and worthwhile content with a subscription and one that would not be viewed entirely even. Furthermore, Internet users who have not yet approached Netflix are given the opportunity of accessing the content for free for a short period. However, this term enables comprehension of conveniences present in the service: subtitles in numerous languages, notifications about releases of favorite shows, and individual recommendations. Additionally, users can enjoy the benefits of the website with members of their families or friends by dividing the subscription fee. Consequently, the firm’s operations include sophisticated payment programs and comfortable billing methods (Gupta, 2020). In brief, Netflix delivers services dependent on comprehensive data and thorough approaches to settle fees for its customers.

Since the organization is management-driven, its competitive priorities are definitive for the structure and manufacture of the firm. Firstly, Netflix aims at presenting quality content, website interface, and technological decisions. The movies provided by the service are selected meticulously, edited by professional employees, and categorized carefully. The platform’s design is intuitive and pleasant for use since the firm’s success depends on the convenience of the service. Plus, numerous people operate together to evaluate the correctness of the ideological substance of the products so that it is acceptable to different cultures of the world. The other priority is delivery speed: Netflix’s streaming technology allows instant access to the products within the platform. Additionally, the content is variated and produced in significant volumes for the broad public. Yet, each individual is treated by the automated algorithm that creates recommendations based on that person’s preferences. Hence, it could be stated that Netflix incorporates a successful example of a firm with multiple adequately fulfilled priorities.

To conclude, the firm demonstrates a coherent, structured, and well-developed operational system. The process of supplied input transformation includes the delivery of data valid for the appropriate distribution of the services and the creation of new routes for retail. The buying, composition, and change of visual content are produced after careful analysis of the buyers’ culture and demands. A special place is given to payments programs beneficial for both customers and the firm. Finally, Netflix’s competitive priorities are accessibility of its services, high quality, individual approaches to each customer, and content variation.


Gupta, S. K. Netflix business model (2020). Business Strategy Hub. Web.

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