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Essay / Netflix Expansion in Western Europe - 1091
Summary This article profiles the U.S.-based online subscription movie and TV service provider and Netflix's plans to expand into Germany , in France, Austria, Belgium, Luxembourg and Switzerland this year (Edwards 2014). . Wide broadband penetration in Europe, combined with a strong middle class and efficient billing systems, makes for an attractive market for Netflix. Netflix also understood that to successfully penetrate target markets, it would need to tailor its online content library to suit local culture. The company's previous expansions have been successful, consistent with their goal of achieving global online dominance (Edwards 2014). Application of Concepts Netflix is a classic example of “disruptive innovation” because it illustrates how a technological vision transformed the industry (Halal 2012). As characterized by Christensen (2008), disruptive innovation disrupts the trajectory by initially providing inferior performance to the existing product and serving a market segment that was not or could not be patronized before. The Netflix uprising disrupted and put enormous pressure on Blockbuster Inc. which eventually filed for bankruptcy (Zalewski 2013). Netflix is primarily a radical change in industry trajectories as the company's assets and core businesses are constantly challenged (McGahan 2004). As Netflix's entire business model surrounds Internet technology, increasing risks of malicious access from external hackers and phishing scams can damage the company's reputation and dampen the growth rate due to customer caution (Clough 2011). A common form of social engineering technique known as "Pretexting" invents a scenario to influence vi......middle of article......enomena-report-1h-2013.pdf> Smith, R. 2014, 'Netflix Now Streaming in Ultra HD 4K', Netflix, web blog post, May 2, accessed May 25, 2014,The Hofstede Center, The Hofstede Center, accessed May 24, 2014,Warc 2011, ' Netflix tops loyalty rankings', Warc, February 9, accessed May 25, 2014, Warc. Yar, M. 2005, "The global "epidemic" of cinematic "piracy": crime wave or social construction? », Media, Culture and Society, vol. 27, no. 5, pp. 677-696, accessed May 28, 2014, Sage Journals, doi: 10.1177/0163443705055723. Zalewski, J. 2013, “Web-based Labs for Cyberphysical Systems: A Disruptive Technology”, Proceedings of the 10th World Conference on Computers in Education , Poland, July 2-5, accessed May 29 2014,