Case: Netflix in a Changing World

**

The World Around Business

30-09-2025 287 views 0

Netflix in a Changing World

Every business operates in a world that constantly changes.

Governments create new rules. Technology opens new possibilities. Society shifts what people want. Competitors appear from unexpected places.

The DESTEPDESTEP – What it is and how it works DESTEP is a framework used to analyse the external environment of a country or region. It helps businesses, governments, researchers or students understand the lar… Read more framework helps businesses understand these external forces. DESTEP stands for Demographic, Economic, Socio-cultural, Technological, Ecological, and Political-legal factors. Some factors create opportunities. Others bring threats.

Netflix’s Challenge
Netflix is the world’s largest streaming platform with 260 million subscribers. But… the world around Netflix is changing fast.

Competitors are everywhere. Disney+, Amazon Prime, and HBO Max fight for the same viewers. TikTok and YouTube pull young audiences away with short videos. Governments push back too. The EU now requires 30% local European content on all platforms. Energy use is under scrutiny as data centres consume more power each year.

Netflix’s strategy team has started a DESTEP analysis but needs your help to complete it. Maybe it’s a good idea to watch this video first.

Factor	Key Points (given)	Add one or more factors
Demographic	Younger viewers shift to TikTok/YouTube	…
Economic	Inflation makes some people cancel Netflix	…
Socio-cultural	Growing demand for diverse and local stories	…
Technological	AI helps recommend content	…
Ecological	Streaming consumes a lot of energy	…
Political-legal	EU requires 30% local European content quota	…

Why this assignment matters

Every business must scan its environment to make smart decisions. Learning to use DESTEP helps you identify what shapes a company’s future. Whether you work in strategy, marketing, or operations, understanding external forces is essential.

Tags:

Share:

0

Assignments for students

What to do?

1. Complete the DESTEPDESTEP – What it is and how it works DESTEP is a framework used to analyse the external environment of a country or region. It helps businesses, governments, researchers or students understand the lar… Read more table

Add one or more factors for each DESTEP category in the table above. Each factor you add must be:
– Concrete (not vague)
– Relevant to Netflix’s business
– Based on real developments in the external environment (within past 10 yrs)

2. Opportunities and threats analysis

Choose three or more factors from three different DESTEP categories (either given or added by you).
For each factor, explain whether it is an opportunity (O) or a threat (T) for Netflix, and why. Support your reasoning with specific examples or business implications.

3. Analysis questions

3a. Why is Netflix a generic competitor of cinemas in the city? (Generic competitors offer different products but satisfy the same customer need.)

3b. In what way does the 30% European content quota create a challenge, but also a chance, for Netflix?

3c. How could Netflix’s focus on AI recommendations become both an opportunity and a threat?

3d. Why might energy use in streaming become more important for Netflix’s reputation than for its direct costs?

3e. How does the popularity of TikTok and YouTube influence Netflix’s long-term growth strategy (5-10 years from now)?

4. Strategic recommendations

What should Netflix do?
Imagine you are the CEO. Based on your DESTEP analysis, provide two or more short recommendations for Netflix. Each recommendation must:
– Link to a specific factor from your DESTEP table
– Be concrete and actionable

Assessment criteria

DESTEP table completion
Pass: One concrete factor added per category
Merit/Distinction: Two or more concrete and relevant factors added per category

Opportunities and threats analysis
Pass: Three factors mentioned, valid differentiation in Opportunities and Threats
Merit/Distinction: Three or more factors mentioned, analysis shows depth and considers business implications with specific examples

Analysis questions
Pass: Three out of five questions answered correctly with valid arguments
Merit/Distinction: Four or more questions answered correctly with valid arguments

Strategic recommendations
Pass: Two actionable recommendations linked to DESTEP factors
Merit/Distinction: Three or more actionable recommendations linked to DESTEP factors, showing strategic insight

Submitting your assignment
Submit your work using the Core button in Businessbase.
Follow the questions carefully. A small spelling mistake is no problem. But unsupported claims or AI-only answers will not meet the learning objectives.

First, enter your name and email correctly — otherwise you will not receive the PDF with your answers.

Core assignments for students

Discover whether you master the essence of this case by completing the corresponding core assignments. If necessary, you can share your answers with your teacher or supervisor.

Case: Netflix DESTEP Assignment

Use this form to submit your Netflix DESTEP Assignment.

* required fields

Step 1 of 2

Instagram

This field is for validation purposes and should be left unchanged.

Your name*

First Last

Your email*

Are you responding on own behalf or on behalf of a group (of students)?*

On my own behalf

On behalf of a group (of students)

Enter the first and last names of all group members

1.1 Complete the DESTEP Table | Demographic*

Add one or more factors for the Demographic category.

1.2 Complete the DESTEP Table | Economic*

Add one or more factors for the Economic category.

1.3 Complete the DESTEP Table | Socio-cultural*

Add one or more factors for the Socio-cultural category.

1.4 Complete the DESTEP Table | Technological*

Add one or more factors for the Technological category.

1.5 Complete the DESTEP Table | Ecological*

Add one or more factors for the Ecological category.

1.6 Complete the DESTEP Table | Political-legal*

Add one or more factors for the Political-legal category.

2. Opportunities and Threats Analysis | Choose three or more factors from three different DESTEP categories*

For each factor, state whether it is an Opportunity (O) or Threat (T) and explain why with specific examples.

3a. Analysis Question | Generic competitor*

Why is Netflix a generic competitor of cinemas in the city?

3b. Analysis Question | European content quota*

In what way does the 30% European content quota create a challenge, but also a chance, for Netflix?

3c. Analysis Question | AI recommendations*

How could Netflix's focus on AI recommendations become both an opportunity and a threat?

3d. Analysis Question | Energy use*

Why might energy use in streaming become more important for Netflix's reputation than for its direct costs?

3e. Analysis Question | TikTok and YouTube*

How does the popularity of TikTok and YouTube influence Netflix's long-term growth strategy (5-10 years from now)?

4. Strategic Recommendations | Provide two or more recommendations for Netflix*

Imagine you are the CEO. Based on your DESTEP analysis, link each recommendation to a DESTEP factor.

5. Sources | External source used*

Mention at least one external source you used (title + website)

6. Final check — before you submit*

Select all that apply to your work.

I added concrete factors for all six DESTEP categories

I explained why factors are opportunities or threats with examples

I answered the analysis questions with valid arguments

My recommendations link clearly to DESTEP factors

Do you want to add any other information, relevant to this assignment? If so, keep it short.

Recommended by teachers

Case method | Cooperative learning

Concrete, realistic situations are individually analysed; afterwards, the resulting vision is presented and discussed in the group.
The individual’s vision is reappraised after seeking additional information. The different visions are selected and appraised.

Storytelling | Content-based

Presentation of poems, eye-witness reports, etc. The more authentic, the better.

Edvard Spaapen

Editor of content during development stage