False: Netflix values individual employee performance and innovation. Netflix's differentiation strategy puts a significant portion of its employees' pay at risk.
Differentiation: While Netflix's primary strategy for gaining a competitive advantage is cost leadership, the company also employs differentiation in its operations. Differentiation is a broad strategy that entails developing the online business and its products in various ways that distinguish them from the competition.
Through product and process innovations, Netflix's innovation strategy focuses on maximizing its competitive advantage. The new features aim to make the Netflix streaming service more accessible and of high quality for the majority of customers.
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