Swot Analysis Of Netflix - 954 Words

Netflix was founded in 1997 on a platform that offered video rental by mail. Reed Hastings, the CEO, co-founded Netflix when he decided that he was sick of paying late fees from Blockbuster. Being a subscriber of Netflix at this time meant that you were able to order a video with one day delivery with no hassles of late fees. In 2007, Netflix expanded by providing online streaming of media such as TV shows and movies, while still providing their DVD by mail services which was what they were originally founded on. This broadened their customer base by providing to those who rather not wait a day for a DVD and just stream media over the internet. In 1997, a Netflix subscription consisted of a by mail video delivery service for a flat†¦show more content†¦On average a customer loses 200 plus films they have rated when they use an alternate media provider such as Blockbuster or Walmart. Following that year, Blockbuster and Walmart launched similar platforms to Netflix, making Netflix’s’ churn rate fall. However, big name competitors such as those did not pose a substantial threat to Netflix given that their value proposition had been growing stronger and stronger over time. One large advantage that Netflix had was they were always the first to offer new media and new deliveries. Porter’s Five Forces Model suggests that there are five important forces that determine the competitive power in a business situation. These five forces include; supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entry. Netflix’s suppliers are primarily producing agencies and studios that direct and shoot the films and shows Netflix offers to their customers. Netflix needs to buy the rights to theses TV shows and Movies in order to offer them to their customers. This gives big name movies and shows relatively high bargaining power. Netflix has tried to counter this by producing shows and movies on their own, these are known as â€Å"Netflix Originals†. Some of these original series are very successful such as â€Å"House of Cards† and â€Å"Orange is the New Black†. Even though this helps Netflix, they still need to have media outside of their ownShow MoreRelatedSwot Analysis : Netflix 1560 Words   |  7 PagesSWOT Analysis A SWOT analysis is a framework designed to analyze the strengths, weaknesses, opportunities and threats of an individual firm. This framework focuses on both external factors, opportunities and threats, affecting the company as well as internal resources, strengths and weaknesses, the firm can leverage. It is important to note that SWOT poses some weaknesses, and is a simple, snapshot tool for analyzing companies that are incredibly complex, and ever changing (Cook, 2015). StrengthsRead MoreA SWOT Analysis of Netflix861 Words   |  3 PagesNetflix is on online television streaming service that allows its subscribers to watch unlimited, available movies and television series for a low-price monthly rate. Netflix is currently available in over 40 countries. It is located mainly Latin America, and is looking to expand into Europe. Emerging into the European market will offer Netflix much more market share. It was recorded in 2013 that Western Europe had 134 million broadband homes as opposed to the U.S. with 88 million. The article refersRead MoreSwot Analysis Of Netflix1267 Words   |  6 PagesSWOT ANALYSIS: Strengths: †¢ Netflix is the largest online entertainment subscription service in the United States, and it accounts for a third of all U.S. internet traffic. †¢ Netflix has created resilient brand recognition. It is very well known among Internet users, and accounts for about thirty per cent of daily Internet traffic. †¢ Largest streaming library among competitors with award winning original content like the series House of Cards, and Hemlock Grove. †¢ Low monthly subscription feesRead MoreSwot Analysis Of Netflix1053 Words   |  5 PagesNetflix is an American entertainment company that was founded in 1997. Their main business comes in the online form, by streaming television shows and movies online. The company was founded by Marc Randolph and Reed Hastings. As of this July, Netflix had nearly 104 million subscribers worldwide, and only half of those coming from the United States. Netflix has some very unique qualities when it comes to social responsibility. Towards their employees, they allow unlimited vacation time, which is unheardRead MoreSwot Analysis of Netflix1128 Words   |  5 PagesSWOT analysis for Netflix: Strengths: 1. Proprietary technology. Netflix has proprietary technology system to stream TV shows and movies and also including processing delivery and return DVDs. This specific system makes the business in Netflix more efficiency. 2. Goodwill and brand value. Netflix is a company with reputation. It has 15 years experiences and has a good deal of loyal consumers. 3. Competitive price. The service is in expensive in Netflix. It just cost 8 dollar perRead MoreSwot Analysis of Netflix1144 Words   |  5 PagesSWOT analysis for Netflix: Strengths: 1. Proprietary technology. Netflix has proprietary technology system to stream TV shows and movies and also including processing delivery and return DVDs. This specific system makes the business in Netflix more efficiency. 2. Goodwill and brand value. Netflix is a company with reputation. It has 15 years experiences and has a good deal of loyal consumers. 3. Competitive price. The service is in expensive in Netflix. It just cost 8 dollar perRead MoreNetflix : A Swot Analysis1369 Words   |  6 Pages In conducting a SWOT analysis of Netflix, we must not only look at the strengths, weaknesses, opportunities, and threats, but we must also draw conclusions about Netflix’s particular situation and how these four areas can be used to improve its overall strategy. In terms of Netflix’s strengths, it has potential internal strengths and competitive capabilities in its strong brand-name image and reputation. Netflix has become a household name with over 75 million subscribers in over 190 countriesRead MoreSwot Analysis Of Netflix1060 Words   |  5 PagesNetflix This paper is broken down by layouts that will show how Netflix has strategic planning and overall objectives on how they value their customers, but look for a profitable outcome. The plan of this layout is to help describe Netflix’s mission statement, business model, competitive advantage, and their financial and strategic objectives (Gamble, J., Thompson, A.A., Peteraf, M.A., 2006). Mission and Vision Statement According to How Does Netflix Work?, (n.d), Netflix does not have an officialRead MoreSwot Analysis Of Netflix1318 Words   |  6 PagesThe biggest weaknesses in Netflix was it’s marketing strategies, pricing, and average brand image presence. It met a lot of challenges in the Indian market. They had problems lack of local content and research of what the consumers wanted and no local content. Only 7% of Netflix was tailored to the Indian market. It’s similar to trying to market an American product in an Indian market. The prices were considered luxury prices and because of the lack in brand image a lot of Indian consumer would stayRead MoreSwot Analysis Of Netflix s Competitive Advantage Essay1607 Words   |  7 Pagesbecome popular amongst consumers. Netflix has become the industry leader followed by, Hulu and Amazon. This is a very competitive market, which has seen much change in the last decade. This paper highlights several concepts about the streaming industry, including, an industry analysis, SWOT analysis on Netflix, their competitive advantage. In addition it goes on to make some recommendations, and discuss a strategic analysis. Industry Analysis The industry analysis will utilize Porter’s Five Forces