-
Essay / The United States Cable Television Industry
In the United States cable television industry, traditional cable companies compete with different types of competitors. Just like Netflix, which has a market share in the home entertainment sector. Netflix's unique organizational architecture has its place in the entertainment industry. Additionally, traditional cable companies are changing their original structure to face fierce competition. Netflix, an incorporated company, operates in the home video entertainment market and is the world's largest online movie rental service. “Netflix increases value for customers based on four major value drivers: technology, delivery, personalization and brand reputation. Over the past year, technology has grown rapidly and Netflix has found a niche market in the video rental market. They distribute the films to consumers in cinemas, airlines, hotels and at home. Little by little, Netflix is changing customers' consumption habits when it comes to watching movies. More and more customers prefer to choose the most convenient method rather than purchasing DVDs. Netflix therefore becomes the first choice of online providers in the home entertainment industry. The optimal decisions for Netflix are for the CEO to perfectly coordinate top managers across functions and for top managers to decentralize power to specific workers. Netflix incorporated grouping of jobs by job functions, rather than by 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, fine-tuning cooperation.” Therefore, Comcast pays significant attention to the centralization of its managers. Second, Comcast offers four main services. There are cable, video programming, Internet and voice services. Comcast uses a cost leadership business strategy in order to capture a higher market share. Because Comcast has lower input costs through the outsourcing process, Comcast's sales price is lower than the industry average. In conclusion, coordination between different divisions always has a problem in companies because there are no specific mechanisms and processes to link different functions. Thus, cross-functional training and knowledge sharing among different departments is the optimal decision for businesses to operate successfully. Also, companies merging with other companies and outsourcing to other companies is also a good decision..