Reference no: EM132653268

Using this information please answer the following question. Include in-text citations and references

The four major challenges that Netflix faces is:

• Growing competition in the streaming video market: businesses such as Amazon.com and Hulu Plus mean competition since they offer a very similar service for a very similar price. Now Netflix is leader, but it can rapidly change if the competitions spice up their product.
• Getting involved in original programming and the associated reaction of major media companies: Netflix has their original series such as House of Cards and Orange is the New Black. This means competition for companies such as CBS and NBC, which in return can mean them cutting off some of the programming they allow Netflix to offer.
• Increasing subscription prices for new customers charged by the studios for accessing their content and investments of streaming content licenses.The costs of accessing content might be difficult to address since it can result in studios limiting the access to their content and increasing the price for it, which eventually can result in Netflix losing customers to the competition and a serious shortening of revenue.
• Entering deals with game console makers, television manufacturers, and Blu-ray disc player makers to include software in their respective products that would provide access to the Netflix streaming service (Walsh 2016).

The most difficult challenge for Netflix to address would be the development of the original programming, to achieve this objective, Netflix would need huge investments and efforts. The easiest task for the company would probably be entering deals with the manufacturers of video devices, since this company has past experiences with this challenge.

How do each of the four challenges faced by Netflix relate to the generic managerial challenges of dealing with globalization, diversity, and ethics?