Strategic Framework Document

Proposal on Building or Buying Email Client

The provision of free email accounts to the public is a major move by Netflix. On developing the service, the company will be able to attract customers who need to create emails not only to sign up for the website but also for personal or business use. In such cases, Netflix will definitely experience an increased client base, which will enhance its place in the media industry. However, the decision by Netflix to build the email client or buy it by outsourcing the project to a vendor should be made carefully to maximize positive outcomes such as customer acquisition and minimize undesirable occurrences such as the failure of the project to achieve its goals (Langer, 2016). The options available for Netflix as well as the possible outcomes associated with each choice should be laid out for a thorough analysis to make sure that the final decision offers the company the best growth platform. Similarly, the decision to build or buy should be based on its ability to serve the company’s goals and objectives tied to the provision of free email accounts to the public.

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Figure: A flow chart facilitating the make or buy decision

Key Factors to Consider in Making a Build or Buy Decision

Making a build or buy decision in any company should be bales on various factors. In most cases, the factors should relate to both the product and the company itself. Some of the most crucial factors to consider when making a build or buy decision include:

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  • The cost – in deciding whether to produce or outsource the involved projects to a vendor, a company should consider the costs involved in each option. The decision to make a product often poses a major challenge in the initial stages (Langer, 2016). In the case of Netflix, choosing the make option will mean that the company will have to raise the initial capital required to develop the plan, acquire raw materials, and hire qualified personnel for the process. Choosing a buy option, on the other hand, will mean that the company will not incur any production costs or experience any interruption in its internal process. However, it will have to pay for the product for as long as it needs it. Therefore, making the make or buy decision should be based on which option minimizes the cost of providing free emails to the public.
  • Long-term benefits – every business takes new initiatives with the aim of acquiring benefits, especially in the long run. In such cases, a build or buy decision should be based on the ability of the product to benefit the company in its chosen nature. Making the products would mean that the company enjoys all the associated benefits (Langer, 2016). The buy option, on the other hand, means that the company will enjoy only those benefits that are provided by the chosen vendor. In other situations, the company can experience minimum benefits from the investment, especially because it does not make major inputs in its production process.
  • Associated risks – in a business setting, products are not only associated with benefits but also risks. In the case of Netflix, a build or buy decision will be based on the possible risks associated with the provision of free emails to the public (Langer, 2016). On choosing to develop the email client in the company, Netflix will be responsible for any problems experienced by users. Choosing the buy option, on the other hand, will leave Netflix free of any risks. However, the buy option may leave the company without the ability to address any issues associated with the emails, which may affect its client trust and loyalty to the company’s products.
Figure: A matrix representing the factors associated with make of buy decisions

Developing the Email Client

The decision to develop an email client at Netflix would involve developing the product inside the company. The emails will require the company to plan and engage in a new product. On choosing to build the product, the company will be forced to adjust production processes and assign new tasks to different members of its staff to cater for the creation process (Yoe, 2016). The company should also note that the decisions should mainly be based on the product in question. In the case of providing free emails to the public, Netflix should make sure that it considers the cost, benefits, and risks associated with its decision to make sure that it experiences the most desirable outcome from the investment.

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Daniel Fortune

Daniel Fortune is a successful business professional, entrepreneur, father, and lover of travel.

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