Managing strategy

The second part of the report focuses on internal analysis of Netflix with VRIN framework adopted for conducting an analysis of company resources and capabilities. Based on the identified in the external and internal analysis, part three feature issues and challenges facing Netflix as it strives to remain competitive in the industry. Part four of the report analyses strategic options that will facilitate continued growth and development of Netflix with the ANSOFF Matrix being the analytical tool for identifying the options. Part five of the report evaluates the identified strategic growth options while part six focuses on the selected growth option before lastly making a brief conclusion and recommendation.
Netflix operates in video renting and streaming industry with the company offering channels foe distribution of DVD rental by mail order, internet streaming of content through home devices such as PCs and internet TV. The company uses subscription-based services to customers who pay a monthly fee for both DVD rental and streaming services. The company had initially linked the two services, but has separated them in recent years meaning subscribers will no longer have access to both unlimited DVDs and unlimited online streaming in one subscription plan (Thompson, 2013).
There are a number of political, economic, social, technological, legal and environmental factors with considerable impact on the operations of Netflix. Political and legal factors in the external market relates to laws and regulations regarding access and distribution of content by Netflix and and other vendors in existing in the industry. There is an increased concern about piracy with companies seeking to enhance their control regarding copyrights, patents, licensing and trademarks. While it is difficult for authorities to eradicate, piracy has a negative impact on revenues collected by vendors as it makes content