Netflix Ansoff Matrix

Netflix Ansoff Matrix is a marketing planning model that helps the largest streaming service in the world to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for the on-demand media provider.  These options are market penetration, product development, market development and diversification.

Ansoff Growth Matrix

Within the scope of Ansoff Matrix, Netflix uses all four growth strategies in an integrated way:

1. Market penetration. Market penetration refers to selling existing products to existing markets. Netflix engages in market penetration through an effective marketing strategy. The entertainment services provider targets outward-looking, affluent consumers with international credit cards and smartphones and uses anticipatory and mono-segment positioning to appeal to the needs and preferences of this segment.

2. Product development. This strategy involves developing new products to sell to existing markets. Product development is one of the main growth strategies for Netflix. The company is focused on producing original content. Furthermore, the streaming service is developing a growing number of non-English language originals from places such as Mexico, France, Italy, Japan and Brazil, to name just a few.

3. Market development. Market development strategy is associated with finding new markets for existing products. The on-demand media provider uses market development growth strategy extensively since its inception in 1998. Thanks to the successful implantation of this strategy, today Netflix is available virtually everywhere except in China and Russia and it has 231 million paid memberships in over 190 countries. [1]

4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. The largest streaming service in the world uses diversification growth strategy rarely. Entering into gaming sector in 2021 is the only notable business diversification case for Netflix.

Netflix Inc. Report contains the above analysis of Netflix Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Netflix. Moreover, the report contains analyses of Netflix leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Netflix marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] ESG Report (2022) Netflix Inc.