Blue Ocean strategy in Netflix production company is the best of all, with little or no competitors. When it enters the business, it gives the company a highly competitive advantage. Netflix is the largest multinational entertainment company with 83 billion paid subscribers. It leads way for digital content since 1997. The operating system of Netflix includes domestic streaming, domestic DVD, and international streaming. What is the Blue Ocean strategy? This is a topic that most people are unaware about it, it describes as the marketing theory which creates and captures the uncontested or noncompetitors market space. Netflix production company is the first user of Blue Ocean strategy that creates new demand and pursues differentiation with low cost to open up new market space. Reed Hastings is the founder of Netflix, where initially he started lending DVD movies by post in the monthly subscription. In 2013 Netflix has introduced its series and then the movies on their platform. To know more about the Blue Ocean strategy, it reconstructs the marketing boundaries and industry structure in actions and beliefs of industry players. the strategy denotes the industries that are not in existence today which is more profitable and have a high level of opportunity for growth.
The profitable growth of the strategy is vast and powerful, which is wider, deeper, and has more potential. Blue Ocean strategy in Netflix is said to be more demand than fighting and competing. The competition is meant to be irrelevant which break the value and cost of other strategy and companies. The strategy is to focus on coming away from the existing market and going in search of the new market. Blue Ocean strategy is much needed in a market when supply exceeds the demand. At first, we should apply four action frameworks i.e., Eliminate, Raise, Reduce and Create grid this helps to proceed the process with ample differentiation and low cost at the same time. When we think about the existing market, their disadvantages, drawbacks, and limitations give Netflix to create a new path by Blue Ocean strategy, because the other marketing background is important to level up our company. Initially, elimination contains moving away from selling and lending DVDs, stores and eliminating storage capacity because all movies were available online and this was a huge move for the competitors in the existing market. Due to these, the storage capacity was not needed in the markets.
Moreover, the next action to take is, reducing the price of obtaining licenses because the cost of the license is lower than the cost of purchasing DVDs for the customers in Netflix. Blue Ocean strategy in Netflix has brought huge change among the existing marketing in bringing the strategy to the track. This has changed the customer’s needs according to the trendsetting. The third action framework is to raise comfort watching and an easy method for payment because the comfort in watching a movie is everything. It’s convenient to watch from where we left. The payment method is also brought easily where only a card number is needed and the further transaction takes the process via online. Last, but not least, it is to create where we can watch unlimited movies and series by monthly payment. There is also called “Self-creation app” like Instagram and Snapchat which contains good concepts, likewise, we have children’s shows, live concerts, educational shows, and more. Netflix is personalized and suggests watching series and movies on basis of our preferences. Looking into the strategy canvas, lending DVDs is at low cost, and selling DVDs is at high-cost entertainment.
Owning is better than borrowing because owning can be controlled and maintained at our convenience but borrowing makes us rely on somebody and becomes a temporary move. Blue Ocean strategy in Netflix has reduced the cost by moving away from the expenses which are not updated and needed in the existing market. Now, selling and lending DVDs need a physical approach because it brings a huge profit to the marketing by generating the cost. Netflix is being the pioneer in its industry in using the Blue Ocean strategy, and it has a high level of competition at the national level. It is preferred as a choice among the national community. The lasting success has its rapid growth of products and services. Netflix is being almost used streaming service nationally. Netflix can create and emerge with new features with virtual reality streaming. Netflix is being a leader among competitors and also being an initiator to use the blue ocean strategy first. Value innovation is the cornerstone of the strategy called Blue Ocean strategy because fighting and beating the competitors is not needed more than making the competitors irrelevant by creating to the company. Thereby, innovating new market space is needed in the current generation.