Netflix versus Volkswagen
Netflix was first founded in August of 1997 by two serial entrepreneurs Marc Randolph and Reed Hastings. The company started out in Scotts Valley, California and has grown to become the world's leading internet entertainment platform. When it first opened, Netflix was purely a website-based movie rental service. Later, they start producing their own movies, series, and drama. So, it was growth form movie renting to movie production.
Volkswagen AG, known internationally as the Volkswagen Group, is a German multinational automotive manufacturing company which manufactures a large variety of automobiles. Volkswagen stepped up its efforts to become the world's number-one carmaker in July 2012 by buying up the Porsche the luxury sports car manufacturer. Porche was thus integrated into Volkswagen, joining the likes of Audi, SEAT, Bugatti, Bentley and Skoda (which are VW subsidiaries). Thus, Volkswagen's acquisition of Porche is a form of growth strategy.
Both companies followed the concentration strategies. Analyze and describe how are they different or similar in their concentration strategy? (10 Marks).
