Strengths And Weaknesses Of Discover Company

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Large catalogue of diverse shows and movies – Netflix has a vast collection of international shows and movies that other competitors in the market do not have.

The landscape of television has undergone major shifts over the last five years. In 2013, cable companies like Time Warner and Comcast, pulled over 100 million subscribers (Udland) total subscribers. By 2015, that number dipped below 100 million subscribers decreasing by one percent (Udland). In 2013, streaming services like Netflix, Hulu, and Amazon, totaled over 40 million subscribers (Udland). By 2015, they saw a 30 percent increase in subscribers (Udland). While cable still holds dominance in the market, the latest trends have shown that streaming services will overtake them in the near future. Streaming services’ surge in popularity is a result of having a product that provides a superior alternative to cable that accommodates the customer.

Based on your review of the financial statements, suggest a key insight about the financial health of the company. Speculate on the likely reaction to the financial statements from various stakeholder groups (employee, investors, shareholders). Provide support for your rationale.

Entering and transforming the video rental industry was a large undertaking for the start-up company. The first marketing objective the company undertook was the process of building a brand. Netflix’s identity was crucial to future growth and success. Without a strong brand, competitors with deep pockets could have easily duplicated the company’s business model. Secondly, leveraging technology was critical to establishing the business and infrastructure growth. The consumer base was the final objective Netflix sought to achieve. Retaining and growing subscribers were fundamental to revenue and marketing goals.

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Strong efficiency helps the company to grow and prosperous in the IT service industry. Cap Gemini follows its path of having strong efficiency by having strong customer base and significant market position. Cap Gemini’s major strength includes offerings broad services portfolio. Cap Gemini believes in “People matter, Results count” (Cap Gemini, 2016) which made the company avoid losing the clients. Operating in more than 40 countries has made the company globally recognized in the international market. Strength includes significance presence in public and energy sector makes Cap Gemini achieves optimal efficiency by global delivery of quality, efficient, talent and collaboration.

Growing competition as a challenge represents the various companies that are now entering the market of online media-streaming. Companies such as HBO, Amazon, Google, and Hulu Plus have all began to offer media-streaming on the same electronic devices as Netflix, Inc. Currently Netflix, Inc. remains in the lead amongst its competitors; however, there is no guarantee that this advancement is a permanent one. It is inevitable that emerging companies will come up with creative ideas to gain the competitive edge and receive more consumers. For example, Amazon.com has “amplified

Netflix can insulate itself from this threat to existence by staying competitive within the market by making an impact with nearly 23 million U.S. users it is now the largest video service within the country. Most observers expect the company to have more than 30 million subscribers by the end of the physical year. But the animating force of perceived Netflix Paradox is disbelief that when a company does what Netflix does can thrive within the media industry. As long as Netflix primarily focus in the business of aggregating entertainment, the company with prosper Knee (2011).

Netflix can continue to offer more opportunities for partnerships and venturing into gaining opportunities to increase its market share. Furthermore, Netflix should continue to expand the content in which it offers its subscribers (Ferrell & Hartline, 2014). Moreover, by partnering with movie studios and other content providers they are able to gain more entertainment abilities faster instead of waiting long extended periods for DVD releases.

This also allows their content to be viewed virtually anywhere. The fact that they teamed up with Oracle to work on their website was a very beneficial move as this gives them somewhat propitiatory technology. I personally enjoy their recommendations and it is obvious that with their next arrival that they have strong logistics. They have a big cost advantage too. If I can stream a whole season of How I Met Your Mother in one day, I feel as though the $8.99 that I spent was a good investment and yet I still have another 29 or 30 days to go. The two times that I had to deal with their customer service; they quality of service was outstanding and I’ve heard many other wonderful testimonials. When looking at weaknesses, I feel that their inability to provide new releases is a major drawback. In addition to this, they need to amp the selection for online streaming since streaming is expanding rapidly. The issue at hand with streaming is that it can potentially lead to server crashes if there are too many users on at once. Netflix can also be very enticing to hackers since there is so much personal information stored. I would say that the biggest opportunity for Netflix would to be to make deals with the movie production companies to allow Netflix to offer new releases. To feed off of that, they need to increase their variety; particularly in the selection of indie and international films. With as

1. Continue building strong partnerships with other providers – the company should continue partnering up with other providers preferably the multichannel television providers such as HBO and Starz in order to increase their selection of streaming titles. This will definitely help the company not only gain but also attract more customers or consumers and therefore increase market share. This would help lower the churn rate and help expand their subscriber base. Streaming titles can also be increased and improved if the company decides to partner up with these other multichannel providers. Based on research carried out in researching about Netflix it is being understood that Netflix is in partnership with multiple other companies or television providers. Due to all of these partnerships being formed the members or frequent customers are now being able to enjoy the benefits of watching these TV episodes, shows and also movies which are made possible to be streamed to their computers and televisions via the use of Netflix ready devices. In the case of Netflix partnering up with TV provider STARZ, for example, it is obvious that Netflix formed the partnership with STARZ entertainment LLC a movie service provider to make movies from STARZ play available for instant streaming at Netflix ( Netflix Inc 2013). If Netflix continues to work well with these providers the partnerships would be a good relationship which would be beneficial to both

Strengths Brand name - Netflix has established a brand name that is widely recognized and many studies have shown that the company has a stronger brand identity among its competitors. It serves more than 65 million users in over 40 countries, Netflix is the dominating subscription streaming video service. They have the largest collection of videos and continues to build up its library with its own original content and higher quality movies. Netflix has become the most favored subscription video streaming service in America, and is found in more than 36% of U.S. homes as compared to its competitors such as Amazon Prime Instant Video at 13% and Hulu Plus at 6.5%. The name itself, is intertwined with the online movie streaming industry. Large amount of content – Not only does Netflix have a variety of content from well-known companies such as Disney, it also has international and original content as well. Netflix streams 4,335 movies, 1,197 shows, and 133 movies and shows of its own original content. Some of Netflix’s well know pieces include “House of Cards” and “Santa Clarita Diet.” This mix of original and well-known content contributors creates a loyal customer base.Easy user experience/platform – Netflix has devised a way to use specific algorithms to collect data in order to adapt itself to each user uniquely. This cuts down on the time users need to invest when searching for specific content. If the user doesn’t find the content they are looking for in this manner, Netflix also separates its content into categories, making it easy for users to simply search for the types of movies or shows they would like to view. A user can also search by title name in the search bar or search by genre. Netflix can even personalize each user experience by allowing their customers to create multiple viewer profiles.

Netflix exhibits dominant economic characteristics in the online movie rental business. They enjoy strong market size and growth rate when compared to rivalry competition. The number of rivalries are increasing, and the market remains dominated by only a few sizeable rivalries like Blockbuster Video, Wal-Mart, Walt Disney Movies and Movielink’s Downloadable Movies. Netflix is determined to offer new and innovative technology to sustain their competitive advantage.

Video-on-demand or VOD, a service that allows users to select and watch videos over the internet, will be one of the greatest innovation as stated in the Netflix case study. It will be a great opportunity for Netflix, but it will also be a challenge to integrate or do away with its current business model. Its current business model is one that relies on the internet and the post service to deliver DVDs to its subscribers. Netflix should carefully enter the VOD market without doing away with its current model. This will allow it to maintain its growing position as a giant in this media industry. In order to better understand Netflix and the problems it faces, we must first identify its strengths. What does Netflix offer its customers that its competitors do not? What differentiates it from its competitors?