Swot Analysis Of Netflix

Netflix is in a fairly favorable position on the strategic group map. Where Added value is measured in terms of instant movies and recommendations, and market coverage is measured in number of stores, vending machines, and online presence.

Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

Movie is common entertainment over the world, so Netflix has an opportunity to challenge abroad by online service platform.

Netflix, an internet television network that is revolutionizing the way we watch TV series and movies without having to leave the comfort of our couch has over 50 million subscribers in more than 40 countries.

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.

Netflix introduced an online streaming service in 2007. At the time of its introduction, the streaming service had a catalog of 1,000 movies and TV shows (Helft, 2007). From 2008 to 2010, Netflix partnered with different electronic companies to provide streaming through Xbox 360, Blu-ray players, PS3, smart televisions, Apple devicesm and Nintendo Wii. (Netflix) Since 2010, Netflix began to launch the service outside the United States with Canada being the first country. In 2016, Netflix became available all over the world (Netflix).

Instead of various local chain stores, Netflix operated from a single virtual store that offered customers new rental features. The web services platform utilized customization and a user-friendly design to facilitate renting movies. “CineMatch,” a proprietary developed application, tailored the virtual store to each subscriber. This technology produced customized rental suggestions for customers while maximizing potential inventory. “CineMatch” incorporated a subscriber rating system of past rentals to generate more efficient and personalized future recommendations. The web-based services also improved selection through the ability to easily browse Netflix’s large inventory catalog and add selections to a personalized “Queue,” which lists movies customers have scheduled to receive. Instead of being forced to navigate through the traditional genre and alphabetized catalog, Netflix offered an easier movie selection process. Besides the selection efficiencies, members have the ability to share ratings, reviews, and movie selections with each other through the “Community” feature.

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

For this paper, I chose to analyze Netflix as it piqued my interest more than others. Netflix is one of the leading Internet streaming media that provides entertainment primarily through movies, series, and documentaries. For monthly subscription price of between $7.99 and $11.99, Netflix users from all over the world have the privilege to instantly access movies and television shows streamed over the Internet on any of their devices including laptops, tablets, iPads, or even smartphones. Netflix’s vision statement says, “Becoming the best global entertainment distribution service; Licensing entertainment content around the world; Creating markets that are accessible to film makers; Helping content creators around the world to find a global audience” (Farfan 2015).

As stated in the opening line, one of Netflix’s greatest strengths, is that it is the world’s leading internet entertainment service. Since its startup in 1997, Netflix has grown from its initial business model of buying and renting of DVDs, vastly expanding to become the world’s leading video streaming network, while producing original films and television productions such as Orange is the New Black, House of Cards, and The Crown. Today, Netflix has a strong brand name and image that resonates all around the world. Also, previously mentioned,

Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great variety of film offerings. Now they want to leverage their strengths to enter into the Video on Demand market

Netflix Inc. is in the entertainment market, which is a part of a larger video, film

“Netflix, Inc. is the world's largest online movie rental service, with more than 10 million subscribers (Netflix Media Center, 2009).”

In Netflix’s own description of its vision for sustainable long-term future, the company describes a few critical elements necessary for growth [Netflix.com]. Its vision encompass the evolution of internet TV, replacement of “linear TV” by the internet TV, development of interactive applications, and enhancement of streaming capability to virtual limitless access capability.

Netflix, an addictive media streaming concept born in August of 1997, has revolutionized the way in which we view films and television series. The appealing and amusing service wholly encompasses a wide range of aspects such as its own plethora of original series, video-on-demand titles, rentable DVDs, and even offers its users the ability to watch and live stream content from anywhere they please. Starting at merely $7.99 a month, the streaming service is affordable, accessible, and an overall satisfactory form of entertainment that has expanded worldwide and is continuing to reach a vast majority, all while impacting society is a multitude of negative and positive ways.