Nabila Nur Amalina Luthfi
F0222129
MID EXAM
1. Based on the 1st article, you may have to break down the Market Research and
Analysis of Netflix in South Korea. What is the SWOT analysis of the expansion
of Netflix in South Korea with the recent market in that country?
a. Strengths
- Brand Recognition: Netflix is one of the biggest streaming services
worldwide, has a powerful branding and a fixed customer base, which
will help Netflic to penetrate the South Korean market.
- Content Library: it undertakes a variety of programs, such as famous
world series and its own ones, which will potentially interest a large
number of views.
- Investment in Local Content: Netflix has invested heavily in the
consumption of South Korean content which augurs well for its image
and reach within the country.
b. Weaknesses
- High Competition: A local corporation like Tving is pulling through, and
the Norwegian company competes and has secured market share and
has rightful local content.
- Pricing Strategy: Netflix prices might be higher than those of its local
competitors and can dissuade consumer bargains in South Korea.
- Cultural Adaptation: Although Netflix has incorporated local
programming into its strategic parl, there could be an issue with
embracing the localized market distinctively in South Korea.
c. Opportunities
- Growing Market: The market for streaming services is being
developed in South Korea, the number of viewers and the time spent
watching the content are growing, which means that the audience’s
interest in streaming is growing.
- Partnerships: Netflix can deepen its insight about audience and local
telecoms to increase the company’s market share and subscriber
base.
- Localized Content Production: There are many people wanting
content from Netflix in South Korea to be localized and produced due
to the fact that it will be suitable for South Korea.
d. Threats
- Intense Competition: In particular, new domestic platforms such as
Tving are steadily growing the market share and potential threat to
Netflix could be observed.
- Regulatory Challenger: It means that Netflix may face new problems
and challenges in the South Korean market. It affects Netflix’s market
share as well as its income.
- Changing Consumer Preferences: High dependence of the viewership
shift towards mobile devices make it important for Netflix to remain
competitive by frequently changing its content and price offers.
2. Following the 2nd Article, how is the competition built by TVing (local player)
to be able to compete with Netflix? What strategies could be implemented by
Netflix to stay competitive in South Korea's Blue Ocean market?’
a. Competition Strategies of Tving Against Netflix
- Local Content Focus: TVing is currently relying on the local dramas
and variety shows that are mainly aired from tvN and JTBC platforms.
This emphasis on culturally appropriate programming is especially
popular among South Korean viewers allowing TVing to seize a fair
portion of this sector.
- Advertising Tier Introduction: Thus, the expansion of
advertising-supported popular service broadened the base of the
programme although some might be constrained from buying
subscriptions from TVing. Observing this strategy has helped in the
expansion of the user base leading to monthly active users of more
than 11.5 million or more.
- Partnerships with Major Media Firms: TVing is a joint project of leading
market players such as CJ ENM, Naver, and JTBC what gives the
service a strong support and resources to create competitive unique
content and use proven distribution channels.
b. Strategies for Netflix to Stay Competitive
- Tiered Pricing Models: As a result, Netflix could consider positioning
as a basic, stripped down smart-phone only plan or divide the network
into different service packages with different rights in accessing
content and video quality. It would help to expand the circle of its
clients as it expands the access to its services to the public, as it
works in the market segment where the local players provide cheaper
services.
- Partnerships with Telecom Providers: Netflix can only negotiate for the
subscriptions to be packaged together to access them. Further, by
sharing some services to telecom subscribers to whom Netflix intends
to market its services, such a free trial could make the subscriber try
Netflix’s services.
- Enhanced Digital Marketing: Some of the advantages are that
engaged social media and collaborating with influencers help promote
Netflix’s content, especially localized programs. The strength of a
proper digital marketing strategy present here suggests ways Netflix
can directly address potential subscribers.
