In the cable television industry in the United States, traditional cable companies compete with several types of competitors. Like Netflix, which occupies a portion of the market share in the home entertainment sector. The unique organizational architecture supports Netflix has a home in the entertainment industry. Furthermore, traditional cable companies change their original structure to face the fierce competition. Netflix Incorporated operates in the home video entertainment market and is the largest online movie rental in the world. “Netflix increases value for customers based on four key value drivers: technology, delivery, personalization and brand reputation.” In recent years, with the rapid growth of technology, Netflix has incorporated the niche market into the video rental market. They distribute films to consumers through cinemas, airlines, hotels and at home. Little by little, Netflix changes customers' consumption habits regarding watching movies. More and more customers prefer to choose the convenient mode rather than purchasing DVDs. Therefore Netflix has become the first choice as the online supplier of the home entertainment industry. Optimal decisions for Netflix are that the CEO perfectly coordinates managers of different functions and that managers delegate power to specific workers. Netflix incorporated jobs based on feature goals, rather than based on consumers or geography. It is a functional organizational structure. CEO Reed Hastings has centralized marketing, talent, services, finance, product and content into six different departments, each with individual managers. “The CEO plays an important role in defining the architecture, coordinating activities between departments, in… cooperation… at the heart of the paper.” As a result, Comcast pays particular attention to centralizing its managers. Secondly, Comcast provides four main services. Cable, video programming, Internet and voice services are available. Comcast uses an enterprise-wide strategy of cost leadership to capture a higher market share. Because Comcast has lower input costs due to the outsourcing process, Comcast's selling price is lower than the industry average. In conclusion, coordination between different divisions is always a problem in companies because there are no specific mechanisms and processes to connect the different functions. So, doing cross-functional training and sharing knowledge between different departments is the optimal decision for companies to function successfully. Furthermore, merging with other companies and outsourcing to other companies is also a good decision.
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