Netflix: Dynamic Capabilities for Global Success

Netflix: Dynamic Capabilities for Global Success

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Abstract

With over 90 million members in more than 130 countries, Netflix has proven itself to be a leader in the global Internet TV industry. This case study documents the firm’s phenomenal rise from uncertain beginnings in DVD rentals to online streaming and original content. It highlights the role of dynamic capabilities in the company’s global success, showing how the firm’s strategy evolved over three key eras in its history. During the first era Netflix focused on the establishment of a scalable business model in the form of DVD rentals offered to mainstream segments at a competitive price. It developed novel resources and capabilities in its second era with reliable online streaming and ‘big data’ algorithms that customized a variety of content to customer preferences. However, ...

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