Netflix Inc.’s mission statement and vision statement target the entertainment market. The online company’s strategic management uses the corporate vision statement to inform organizational development direction, and the corporate mission statement to guide higher performance achievement. Netflix’s operations management accounts for multinational business growth, including that of subsidiaries and franchises like StoryBots. Based on its corporate mission and vision statements, the company targets the international entertainment market’s biggest share, as executives seek new partnerships to penetrate current and new markets. Furthermore, Netflix’s corporate vision and mission statements keep the business open to diversification into other markets that are not limited to online media. This possibility points to potential higher growth and expansion of the movie streaming business, in line with the corporate mission statement’s aims in entertainment products and the corporate vision statement’s emphasis on industry leadership. Despite challenges regarding competitors’ similar strategic initiatives, Netflix satisfies the strategic requirements of its corporate mission and corporate vision.
Netflix’s mission statement and vision statement push for greater business performance in the global entertainment market. However, threats and strategic challenges against international business growth are due to strong competition involving Amazon, Walmart, Apple, Google, and Disney, as well as other firms that distribute entertainment content through media like DVDs. Still, Netflix Inc. focuses on growing its multinational operations as a strategic management implication of its corporate mission statement and corresponding corporate vision statement, ensuring the improvement and strengthening of the business despite the forces of competitors.
Netflix’s Mission Statement
Netflix Inc.’s corporate mission is “To entertain the world.” This mission statement is based on the nature of the company in providing on-demand movie streaming services. Similar to the corporate vision statement, this corporate mission emphasizes operations in the entertainment industry, as the business thrives in addressing consumers’ expectations and preferences about the media they access. The following are the main points of Netflix’s corporate mission statement:
The first point of Netflix’s corporate mission statement indicates the entertainment business nature of the company. However, this business category broadly includes movies, series, performance art, stage plays, and others. Thus, this point of the mission statement may be too broad in specifying Netflix’s operations, although it indicates possible strategic plans of diversifying the business. A factor to consider is that the company’s “core strategy is to grow our streaming membership business….” This core strategy refers to Netflix’s generic strategy for competitive advantage and intensive growth strategies, and strategically implies the corporate mission statement. For example, to effectively entertain the world, the movie streaming business must grow its membership to a larger global scale. This is where the second point of Netflix’s corporate mission comes in, as the corporation aims to reach audiences globally. This worldwide scale of operations also entails that Netflix’s organizational structure is suited to providing online services to diverse audiences and markets. The on-demand media streaming company’s corporate vision statement also addresses such a strategic goal of international operating scale.
Netflix’s Vision Statement
Netflix Inc.’s corporate vision is “To continue being one of the leading firmsof the internet entertainment era.” Aligned with the corporate missionstatement, this visionstatement highlights the company’s strategic objective of being at the top ofthe competition, considering large players like Amazon and Walmart. It is notablethat, in some of its official documents, Netflix states that it aims “To keep leading by offering an amazing entertainment experience.”Considering these factors, Netflix’scorporate visionstatement has the following main points:
Netflix’s strategic management supports the goal of continuing leadership, indicating that the company has already achieved its previous corporate vision statement of global industry leadership. The business aims to maintain its leadership and operational effectiveness, while growing its membership to satisfy the corporate vision’s objectives. The business strengths enumerated in the SWOT analysis of Netflix Inc. contribute to this industry leadership. The “Internet” part of the corporate vision statement represents online media as a primary factor in business operations. Also, Netflix’s nature as an entertainment business is included as a point in the corporate vision, similar to how the corporate mission statement describes the business as an entertainment enterprise. Notable is Netflix’s organizational culture, which motivates employees to help the business continually evolve to satisfy the vision statement by ensuring customer satisfaction and industry leadership.
Key Points on Netflix’s Corporate Mission & Corporate Vision
Netflix’s corporate mission statement broadly describes what the business does (entertaining the world). In contrast to the corporate vision statement, this corporate mission is brief but not descriptive enough in representing the company’s target markets or market segments, and in showing how entertainment is provided to customers. To improve its mission statement, Netflix Inc. has the option to make the statement describe the company’s business purpose, nature, approaches, and types of media used. On the other hand, the company’s corporate vision statement specifically aims for a future strategic position in the online entertainment industry. Netflix can improve this corporate vision by making the statement describe how the business plans to continue its industry leadership. Overall, however, the online company’s vision statement is more satisfactory than the corporate mission statement. These recommended improvements could increase the statements’ guidance of strategic management and strategic planning in the on-demand digital content streaming business. Also, to fulfill the corporate vision statement’s aims and the corporate mission statement’s operational requirements, competitive advantages must be sustained and utilized in Netflix Inc.’s value chain, along with the development of business core competencies based on the VRIO and VRIN analysis frameworks.
Itis realistic to expect future changes in Netflix’s corporate vision statement. This is especially so becausethe company has already achieved movie streaming industry leadership, and thecurrent corporate visionjust focuses on maintaining this strategic position. A possibility is that Netflix’s vision statement couldinclude other variables that represent business performance, such as profitabilityand number of corporate partners. These variables can help make the corporate vision statement moredefined and specific to direct the online company’s strategic plans. On theother hand, considering the broadness of Netflix’s corporate mission statement, business diversification isexpectable. For example, the company can add more business ventures to itsportfolio, in addition to original content production and on-demand digitalcontent streaming that the missionstatement encompasses. Netflix’soriginal content production is already a sign of such diversification impliedin the corporate mission.As the company continues to use the same corporate mission statement, the enterprise remains opento new products and new business ventures that could expand revenue sources andglobal market reach. Overall, Netflix’scorporate missionstatement implies flexibility and future diversification, and its corporate vision statement drivesthe business to continued dominance in the online media streaming industry.
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At Netflix, we want to entertain the world. Whatever your taste, and no matter where you live, we give you access to best-in-class TV series, documentaries, feature films and mobile games. Our members control what they want to watch, when they want it, with no ads, in one simple subscription.Does Netflix have a vision statement? ›
Netflix Inc.'s corporate vision is “To continue being one of the leading firms of the internet entertainment era.” Aligned with the corporate mission statement, this vision statement highlights the company's strategic objective of being at the top of the competition, considering large players like Amazon and Walmart.What is the purpose of the mission statement and why is it important to the strategic planning process? ›
A mission statement outlines a startup's underlying motivation for being in business. It spells out the contribution to society that the organization aspires to make. The mission statement is not a strategic objective, but rather the basis on which the strategic objectives and strategic plan are developed.What is Netflix's core strategy? ›
Our core strategy is to grow our streaming membership business globally within the parameters of our operating margin target. We are continuously improving our members' experience by expanding our streaming content with a focus on a programming mix of content that delights our members and attracts new members.What are Netflix strategic objectives? ›
Mission: Netflix provides customers with access to TV shows, movies, and other entertainment products. Objectives: The corporate objective is to provide quality services according to the customers' demands; the business objective is to develop globally and increase the number of clients.
At Netflix, we aspire to entertain the world—creating great stories from anywhere and offering greater choice and control for people everywhere.What company has a good mission statement? ›
Amazon. “To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” Amazon has been a champion of vision and values since their start.What is the meaning of a mission statement? ›
A mission statement is a concise explanation of the organization's reason for existence. It describes the organization's purpose and its overall intention. The mission statement supports the vision and serves to communicate purpose and direction to employees, customers, vendors and other stakeholders.What is the purpose of vision and mission statements? ›
A Mission Statement defines the company's business, its objectives and its approach to reach those objectives. A Vision Statement describes the desired future position of the company. Elements of Mission and Vision Statements are often combined to provide a statement of the company's purposes, goals and values.How important is the mission vision and core values of a company in developing their strategic plan? ›
It helps the employee know the purpose of its existence and core values on which it is governed. It is an integral part of a company's strategy that helps to set priorities, allocate resources, and ensure that everyone is working towards common goals and objectives, thus providing a road-map to the future.
Mission and vision statements play three critical roles: (1) communicate the purpose of the organization to stakeholders, (2) inform strategy development, and (3) develop the measurable goals and objectives by which to gauge the success of the organization's strategy.What are the strategy of Netflix to innovate their strategy? ›
The Netflix innovation strategy focuses on maximizing its competitive advantage through its product and process innovations. The innovations are aimed at making the Netflix streaming service high quality and accessible for the majority of consumers.What is Netflix's strategy what type of competitive advantage is Netflix trying to achieve? ›
Netflix Inc.'s generic strategy is cost leadership, which in Michael E. Porter's model ensures competitive advantage through minimized costs and, frequently, minimized selling prices.Why did Netflix change their strategy? ›
The company is hoping to engage viewers with a “bigger, better, and fewer” strategy. In other words, the service will continue to make high-quality pictures with A-list talent … just not as many as in the past.What is Netflix's product strategy? ›
Netflix product strategy
'Going digital' enabled Netflix to expand worldwide. Having achieved all of the above, Netflix is currently placing a strong focus on original content. The product team at Netflix prioritize monthly retention as the company's high-level engagement metric.
Netflix has adopted a growth strategy since its incorporation where the main motive is to expand and grow in different markets through its services. The company started with the business to provide home delivery of DVD movies and shows to customers through the post so that they don't have to visit the store.How will Netflix functional strategies have to support its competitive strategy? ›
Another functional strategy of Netflix is making Netflix the superior streaming video service on the internet. This means that it will load faster than its competitors, have more movies than any 2 competitors combined, and have the newest releases available as soon as possible on the streaming service.What is Netflix's culture like? ›
Netflix culture puts a heavy emphasis on high performance, as well as freedom, which are hallmarks of a great workplace. But they also expect more accountability from team members.How does the Netflix culture contribute to the success of the company? ›
Netflix's corporate culture encourages employees to explore new ideas and ways of achieving their work objectives. This condition promotes competitiveness against firms like Apple, Amazon, Walmart, Disney, YouTube (Google), and HBO.What motivation theory does Netflix use? ›
Netflix ranks “independent decision-making by employees” as its top core value. They increase performance to outcome, by rigorously killing off new ideas early. This may seem counterintuitive, but most innovative companies follow a similar philosophy.
Spotify's corporate vision is to be “a cultural platform where professional creators can break free of their medium's constraints and where everyone can enjoy an immersive artistic experience that enables us to empathize with each other and to feel part of a greater whole.” The company's nature as a platform, and the ...What is Apple's vision statement? ›
Vision – We believe that we are on the face of the earth to make great products, and that's not changing. Mission – Bringing the best user experience to its customers through innovative hardware, software and services. Apple's vision statement is clear, concise, and to the point.What is Spotify's mission statement? ›
Life at Spotify
Our mission is to unlock the potential of human creativity—by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it.
In everything we do, we are always dedicated to Our Mission: to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.