Expanding Beyond the Entertainment Industry
“Netflix is the world’s leading internet entertainment service with 130 million paid memberships in over 190 countries enjoying TV series, documentaries, and featured films across a wide variety of genres and languages” (NETFLIX Media Center). Maintaining a competitive advantage is a number one priority for any organization. As the entertainment industry continues to grow and other organizations find it easy to enter the market and compete, Netflix is exploring opportunities to offer new services that is outside the entertainment industry.
Becoming an Email Service Provider (ESP), Netflix can be accomplished this strategic endeavor by either using internal resources and create an email service or outsource the initiative. Creating a free email service internally will require Netflix to hire engineers to design the application, add additional hardware and require a long-term cost. A SWOT analysis was conducted on Netflix and based on the data from the analysis, developing the email service internally does not seem like the best path to choose.
The use of external resources or outsourcing to a third-party provider in the application of a Software as a Service (SaaS) platform or potentially create a partnership with another organization to provide the creation and maintenance of the new service. “Do what you do best and outsource the rest”.