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Marketing Report
Netflix
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Table of Content
Introduction ................................................................................................................................................... 3
Brief Background of Netflix ......................................................................................................................... 3
Internal Analysis ........................................................................................................................................... 3
Strengths ................................................................................................................................................... 3
Weakness .................................................................................................................................................. 3
External Analysis .......................................................................................................................................... 6
Opportunities............................................................................................................................................. 6
Threats ...................................................................................................................................................... 6
Summary of SWOT .................................................................................................................................. 7
Strategic Approach ........................................................................................................................................ 7
Strategic Recommendation ........................................................................................................................... 7
Continued Product Improvement .............................................................................................................. 8
Conclusion .................................................................................................................................................... 9
References ................................................................................................................................................... 10
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Introduction
This report includes the internal and external factors of the company analysis of Netflix. Internal and
external factors are taken into account in a SWOT analysis framework in which the movie streaming
company's strengths, weaknesses, opportunities and threats are mapped to the company's internal and
external factors (external analysis). Although Netflix's vulnerabilities and threats in the market have a
detrimental influence on the firm, as seen in this SWOT analysis, the company is growing and exploiting
possibilities.
Brief Background of Netflix
Reed Hastings and Marc Randolph launched Netflix in Scotts Valley, California, in 1997. DVD sales
were discontinued within a year of Netflix's inception in order to concentrate on DVD renting.. Netflix
began on-demand streaming media in 2007. Members of Netflix may view TV programmes and movies
without advertisements on any internet-enabled device with a subscription. You may also download TV
series and movies to your iOS, Android, or Windows 10 device and view them offline. Alternatively, you
can stream them online.
Internal Analysis
Strengths
1. Affluence of the Netflix name
2. A vast network of creators and consumers of digital material
3. Ability to produce original material
Weakness
1. Indistinguishable business strategy
2. dependency on content creators
3. Internet service provider reliance
Strengths
When it comes to brand equity, Netflix Inc. has a significant advantage over its rivals because of its
strong brand. Because of the brand's popularity and capacity to expand into new areas, the movie
streaming firm is able to sustain and grow in its present territories. As a result, Netflix is able to optimise
operational efficiency, service attractiveness, and company development via its enormous network of
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content providers and users. With more content creators on the platform, the service draws a bigger
audience that in turn attracts more content providers. Other platform-type firms, such as Spotify
Technology and its on-demand music streaming activities, demonstrate the same sort of commercial
success. Netflix's ability to create original content is another one of its many assets. Additionally to
revenue from streaming services, the corporation is able to generate revenue from its own productions.
The value proposition of the organisation is accomplished via the use of these capabilities in the value
chain of online streaming. Additionally, Netflix's corporate culture influences how these internal elements
impact company success in content development and technology innovation, through human resource
capabilities, as well (Gürel, 2017).
Weakness
Netflix Inc.'s business model is easily cloned, which is a strategic flaw inside the company. It is possible
for rivals to use the same idea to develop an on-demand internet video streaming platform. Another
Netflix Inc. vulnerability evaluated in this SWOT analysis is a reliance on content creators. This internal
element renders the organisation sensitive to the techniques used by the manufacturers. In addition, the
company relies on Internet service providers (ISPs) that govern the speed at which users may access
Netflix, which is a major element in customer happiness. This SWOT analysis illustrates the strategic
issue of reducing the company's vulnerability in light of these internal strategic considerations (Gürel,
2017).
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