Netflix Model assignment
Netflix has been one of the most successfully running OTT platforms within the film and entertainment industry. Most of the film industries have been engaged with digital methods of broadcasting along with increased CSR reputation amongst the market.
Porter’s and Kramer’s Create Shared Value Opportunity (CSV) framework is a functional tool for deciding the choice of the best possible strategy in order to increase the CSR value and also ensure high productivity for the business (HBS, 2021). Considering the three levels of CSV it can be said that for a business to increase its value in terms of corporate reputation and market. Three levels are as follows:
1. Reconceiving the needs, consumers and products: Meeting or fulfilling the social needs of consumers and stakeholders through their products and also engaging their core members with promotional activities for new product launches.
2. Redefining the value chain’s productivity: Utilizing the resources, suppliers, employees and logistics in a manner that is different and conservative in terms of the organizational or business stakeholders.
3. Improving the overall business environment at the local and regional levels: Improving the skills, base of the suppliers and also ensuring regulatory environments for the business is an ideal way to improve the CSR score or reputation of the entire business unit or brand.
As per the CSV, the framework proposed attributes the business of Netflix must incorporate something more innovative and sustainable that seems to be different from similar market competitors and also ensure that the use of eco-friendly resources is utilized in a proper manner. Principles of accountability, ethical behavior, transparency, respect for stakeholders and dignity towards human rights in order to serve as a more popular OTT and entrainment services. Thus adopting the last choice of producing or filmmaking is a very must acceptable option in terms of gaining increased popularity and productivity for the brand. Almost more than half of the carbon footprints generated by Netflix are due to the reason of their film production and making activities. Diesel generators that are used for the purpose of production are very legitimate but the emission is caused due to the production is a major issue for the environmental sustainability aspect of Netflix. Thus in order to ensure that Netflix is able to reduce their carbon footprints and establish or come up as a more eco—friendly company in terms of operating their film-making activities, it is suggested that they replace the use of diesel generators with batteries and solar panels. This could be extremely helpful and cautious for business sustainability and business progress. The diesel generators contribute almost one-sixth of the entire carbon emission that is encountered by Netflix’s operations. Making use of such a unique strategy to reduce environmental pollution is trustworthy and definitely acceptable by the majority of the stakeholders associated with the business. The introduction of battery cells and solar panels is a very much valid and justified option for the purpose of maintaining the level of carbon emission and also ensuring the local community is satisfied with the attempts of Netflix as a corporate green.
Making use of solar panels for the purpose of film-making is adorable and very productive as per the environmental and economical value of the operations attained by Netflix. The transformation of Netflix’s operations in the past also has been quite significant. In May 2000 the business had created revenue agreements with some of the major or leading studios within the US. Earlier they made use of DVDs for rental payment basis and by the time the concept of buying DVDs had been replaced with their strategy or idea of providing upfront rent over a specific time period for any particular series or theme. In 2001 the business went on for opening up a single distribution point at Sunnyvale in California. But still, there were major problems for the audience to receive the delivery of their rented movies or shows the very next day. This probably forced the operator to open up more distributions around the whole country. But again the problem of renting those centers and maintenance costs behind them also seemed to be less printable for Netflix’s business. After this, in order to become more sustainable, they also elapsed this concept and started acquiring content that is produced and made by local industry filmmakers. The transition towards video streaming finally became the most attractive and centric business concept for Netflix. Moreover, the use of the digital OTT platform seemed to be more efficient, profitable, acceptable from the audience and also very much sustainable from all aspects of business operations. Therefore the overall concept of digitalization and shift towards OTT platform from traditional DVD business was the main revolutionary attempt from the end of Netflix. Making use of solar panels and batteries for the production house activities shall be checked and the OTT providers may opt to utilize the mentioned sources of energy in replacement of the traditional diesel machines. This would be highly profitable for Netflix from the aspect of their production costs. Diesel is a very essential fuel required for several commercial and utility purposes. Thus burning a significant amount of diesel is considered waste and can be marked as a breach of environmental sustainability. Apart from that, the emission rates generated through diesel-burning are also not acceptable from the environmental norms. Every stakeholder associated with Netflix must support this particular innovation attempt in order to make sure that Netflix does utilize the available trends of renewable energy sources for the purpose of their film-making and also ensuring better coverage of the funds. This would be ideal from the perspective of their Corporate Social Responsibility as a leading OTT and digital entertainment operator.
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