As it has been reported in the news, Netflix is expanding into the Caribbean and Latin America. In my opinion this move is well-timed and should help the company increase its bottom line.
Latin America consumers are very big on foreign and local media consumption. Plus, there is a huge void for a provider in the online video market.
Netflix shareholders (myself included) should be very excited about this move. Brazil, Argentina, and Mexico represent fast growing media markets and should help the company grow. Not to mention that after the expansion news broke out, Netflix shares were up about 8%.
It seems as though Netflix will follow an adaptation strategy by offering content in English and Spanish.
As opposed to the DVD rental model used in Canada and the US, Netflix will wisely not pursue this strategy in Latin America. They will only offer online streaming services. The reason for this is that the postal system in most Latin American countries is nowhere near the US Postal service and it would have caused the company significant logistical problems.
While the competition in the online video market in the US is intensifying, Latin America offers a very attractive opportunity for video providers to reach out to an audience craving for quality content. Netflix first mover advantage should prove, in the long-run, a very advantageous one.
Wednesday, July 13, 2011
Thursday, June 23, 2011
Glocalifornication: What does it mean?
If we break it down, the term "californication" is used to describe the spread and influence of western culture around the world. On the other hand, the term "glocal" refers to the ability of thinking globally and acting locally. What happens when you merge the two? Aside from coming up with a 18-long-word, we come up with a term that tries to capture and define the current state of a semi-globalized marketplace. A marketplace where companies (big and small) struggle to implement innovative global expansion strategies. Contrary to popular belief, the world in which we live in is semi-globalized at best. Administrative, geographic, cultural, and economic distances are still determining factors in the success rate of product or services being offered abroad. The purpose of Glocalifornication is to analyze western companies that are failing to implement a "think-global act-local" approach to their business model. From time to time I'll also cover topics on international marketing and branding.
Having said that, let me start with my first post by talking about 10 global brands that won't be around in 2012.This of course is according to Wall street 24/7. Each year this source comes up with a listing of brands that are going to disappear in the near-term.When I came across this list today, I was very surprised to see Nokia.
Why was I surprised?
Well, I had been reading about Nokias' struggles to keep up with RIM, Apple, and HTC but until today I realized the predicament in which the finnish company had placed itself. Falling market share, lack of a proprietary operating system, the rise of VoIP are mentioned as the causes for Nokia's free fall. Let me touch on the lack of proprietary OS for a moment. Everybody wants to become a leader in the smartphone industry. The race to come up with the fastest, lightest, thinnest smartphone has RIS, Apple and HTC cranking out new phones every other couple of months--or at least that's my impression. So the question becomes, why is Nokia so obsessed with participating in this crazy race when they could be pursuing a high-volume low-cost strategy?
Is it possible that Nokia is missing an opportunity by not catering to the low income segments of emerging markets? In a world where the majority of the world population can't afford a smartphone, why is Nokia entrenched in this battle to develop the latest technology destined to satisfy the needs of a very small percentage of the world population?
Can Nokia learn a thing or two from Tata motors or the $100 laptop project?
According to the UN Telekom agency the demand for mobile phone services will continue to grow in the developing countries.
Nokia. The clock is ticking. It's time to look at your business model and make some changes.
Glocalifornication style.
Having said that, let me start with my first post by talking about 10 global brands that won't be around in 2012.This of course is according to Wall street 24/7. Each year this source comes up with a listing of brands that are going to disappear in the near-term.When I came across this list today, I was very surprised to see Nokia.
Why was I surprised?
Well, I had been reading about Nokias' struggles to keep up with RIM, Apple, and HTC but until today I realized the predicament in which the finnish company had placed itself. Falling market share, lack of a proprietary operating system, the rise of VoIP are mentioned as the causes for Nokia's free fall. Let me touch on the lack of proprietary OS for a moment. Everybody wants to become a leader in the smartphone industry. The race to come up with the fastest, lightest, thinnest smartphone has RIS, Apple and HTC cranking out new phones every other couple of months--or at least that's my impression. So the question becomes, why is Nokia so obsessed with participating in this crazy race when they could be pursuing a high-volume low-cost strategy?
Is it possible that Nokia is missing an opportunity by not catering to the low income segments of emerging markets? In a world where the majority of the world population can't afford a smartphone, why is Nokia entrenched in this battle to develop the latest technology destined to satisfy the needs of a very small percentage of the world population?
Can Nokia learn a thing or two from Tata motors or the $100 laptop project?
According to the UN Telekom agency the demand for mobile phone services will continue to grow in the developing countries.
Nokia. The clock is ticking. It's time to look at your business model and make some changes.
Glocalifornication style.
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