Final answer:
Netflix can overcome challenges in the worldwide market by enhancing user experience, diversifying content, adopting competitive pricing, investing in original content, and understanding changing consumer preferences. Strategic partnerships and continual adaptation are key to its success and growth.
Step-by-step explanation:
To recommend how Netflix can overcome its current challenges in the worldwide market, it is essential to analyze both the past missteps of the company's management and the evolving preferences of consumers. Netflix's underestimation of the elasticity of demand and the increase in substitute services such as Vudu, Amazon Prime, Hulu, and Redbox, which provide both streaming and physical DVD options, led to a miscalculation of customer loss following a significant price increase in 2011. Given that many consumers still preferred physical DVDs to streaming in 2012, Netflix failed to adequately account for this preference.
To adjust to the worldwide market, Netflix needs to focus on understanding and adapting to changing consumer behaviors. As more people favor streaming over physical DVDs, Netflix could enhance user experience, diversify content offerings, and explore competitive pricing plans that resonate with a diverse audience. Additionally, strategic partnerships and continued investment in original content tailored to various markets could aid Netflix in retaining existing customers while attracting new ones, overall contributing to the company's longevity and relevance in the competitive streaming industry.
Despite earlier struggles, as the population's preference for streaming video increases, the potential for Netflix to recover and excel in the worldwide market remains optimistic. A dedication to innovation, customer satisfaction, and strategic market analysis is crucial for Netflix to stay competitive and grow moving forward.