Netflix is an online video streaming business which having originally started in the United States, has quickly spread into the international markets of Canada, the United Kingdom, France, Germany and many others. I decided to research Netflix for the assignment as I believe it will allow me to explore many of the concepts taught within this unit such as competitive advantage, new trade theory and the stages model.
Netflix's international mode of entry was entirely through Greenfield ventures rather than acquisitions which may have made the transition into foreign markets easier. While acquiring existing companies in these foreign markets may have been faster to execute, Greenfield ventures might have been more attractive for the business due to the nature of the countries it initially expanded into where the culture was similar and less risky.
I am suppose the do the following parts of this assignment:
1) Define and explain Greenfield venture in relation to Foreign Direct investment (400 words).
2) Were Greenfield Ventures advantageous for Netflix? (600words).