What organization structure does Netflix Inc have?

Answer 1

They have a functional structure.

(Strategic Management: A Competitive Advantage Approach, 2013: David, Fred R.)

- I would argue that Netflix has a matrix structure. The company uses its resources to support their three product lines which include domestic mail order rentals, domestic streaming, and international streaming. The company has environmental pressures for in-depth technical knowledge and frequent product innovations. With environmental pressures that call for both functional and divisional structures, the company needs a dual-authority structure (matrix structure) to maintain equal recognition of both vertical and horizontal lines of authority. Netflix's environmental domain is complex and uncertain, as there are frequent external changes and high interdependence between departments. This requires a large amount of coordination and information processing throughout the organization. As Netflix continues to expand globally the firm may consider moving to a global matrix structure. This structure would allow for ease of customized regional decision making to meet regulation, consumer preferences, advertising policies, demand for content, etc.

-Nschlag