Answer to Question #148496 in Management for Syeda

Question

What were the external pressure that forced Netflix to adopt change?

Answer 1

Technology is one of the external pressures that is influencing Netflix to change. The shift in technology creates an issue for streaming services. The economic factor is another pressure causing Netflix to implement changes in its operations. Potential buyers with low income may be alarmed by the subscription fees of Netflix. In times of financial challenges, people are likely to ditch subscription services. Government regulations also trigger a change in Netflix's business activities. Regulations on business processes, taxations, and content influence modification of business strategy by Netflix. Industry competition is also an external pressure affecting Netflix's business strategy. Many streaming services worldwide are competing continuously with Netflix, creating the need for new business approaches. Social factors have also pressured Netflix to adopt changes as people are more into digital services than purchasing physical products. These external factors explain why Netflix is experiencing changes in business strategy.