Effective Business Strategy

In the rapidly changing business and management environment, it is exciting to observe the emerging strategies that push companies to success. One applicable strategy is the application of data analytics for decision-making, a practice that has gained popularity in the last few years (Rogers et al., 2019). Ten years ago, it is hard to imagine that data analytics was not a very widely used business tool compared to what we have now. Nevertheless, the forerunners of those companies realized the huge prospect that came with data-focused analytics in improving day-to-day operations.

Using sophisticated analytical tools and technologies allows these business entities to access and analyze large volumes of data that guide the management strategy for various functions (Simon, 2019). One company that has successfully reaped the benefits of big data analytics as a guiding strategy is Netflix. Netflix was a DVD-renting service that started in 1997. However, over the years, it has transformed into a global streaming leader by adequately using data analytics to revolutionize the content delivery for its subscribers.

Moreover, Netflix relies on an individualized system of recommendations, which is based on the analysis of the dataset collected from user viewing history, preferences, and ratings, making it possible to offer content suggestions suitable to the personal interests of the subscribers, which in turn leads to the enhancement of user satisfaction and loyalty (Goyal et al., 2020). Data analysis helps make strategic decisions in producing and acquiring content by revealing current trends, predicting demand, and dynamically adjusting the film library to change viewer preferences and needs (Rogers et al., 2019). Netflix’s success and the effort to become the streaming industry’s leader can be attributed to data analytics playing a principal role in its business model.