Strategy

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Table of Contents Introduction 2 Part 1: External Analysis 3 1.1 Macro-Environment Analysis 3 1.2 Industry Analysis 4 Porter’s Five Forces of Competition Analysis of Netflix 4 1.2 Opportunities and threats (Partial SWOT) 5 Part 2: Internal Analysis 6 2.1 Value Chain Model 6 2.2 Competencies Framework 7 2.3 VRIO Framework 8 2.4 Strengths and Weaknesses (partial SWOT) 9 Part 3: Netflix Issues and Challenges……………………………………………………………………………………………..10 Part 4: The selection of strategic options 11 4.1 Strategy Clock model and the Porter’s Generic Strategy Model 11 4.2 Strategic Options 12 Part 5 – Conclusions 14 References 15 Appendix 17 Introduction Netflix, set up in 2000, is a television show and movie rental…show more content…
The Video-on-Demand services through digital, cable and subscriptions also saw major increases. The purchase decisions of customers were mostly catapulted through convenient access, variety of services, ease of product return, price of rentals, return fees etc. (Kriete 2013). 1.2 Opportunities and threats (Partial SWOT) Part 2: Internal Analysis We will now do an internal analysis of Netflix and try to find out the core strengths and weaknesses of Netflix. 2.1 Value Chain Model 2.2 Competencies Framework Threshold (Needed to Play) Distinctive (Needed to Win) Expansion to global markets Technology usage for customized services to consumers Technology development and R&D Convenience for consumers to avail services Brand name Broad media content Matching Competencies of Netflix to customer requirements 2.3 VRIO Framework Capabilities Valuable? Rare? Difficult to Imitate? Exploited by Firm? Competitive Implications DVD Rental Yes No No No Temporary competitive advantage Blu-Ray Rental Yes No No No Temporary competitive advantage Physical Distribution Yes Yes Yes Yes Sustainable/Temporary competitive advantage Online Streaming Yes Yes Yes Yes Sustainable competitive advantage Title Variety
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