The SWOT matrix of Netflix GO, goes hand in hand with Netflix itself. The strengths of Netflix GO heavily rely on the company itself. Currently Netflix is one of the biggest names in the entertainment industry and has established itself as a credible company. As of the third quarter of 2016, Netflix has very large customer base with 86.74 million worldwide subscribers ("Number of Netflix"). The retention of these customers is based off of two main factors. First, the customers have very large selection of television shows and movies with an amazing 13,000+ titles to select from (“Netflix TV Show”). Second, and most importantly subscription for annual subscribers who will use currently use Netflix and those who will use Netflix GO will being …show more content…
Currently Netflix is seeing mass amount of growth in its streaming customer base so there will be plenty of growth in the next few years allowing for Netflix GO to catch a hold of the new customer base. The threat that runs to parallel to this is that many more streaming services are on the rise and are beginning to gain popularity such as Hulu Plus, HBO Go, and Philo TV. These services could mitigate the number of subscriber growth that Netflix is currently receiving or could develop a similar streaming product such as Netflix GO. A second opportunity for Netflix is the partnership with a large tablet producing corporation such as Microsoft or Sony whose sales may be threatened by Netflix Go. In contrast, the threat becomes whether or not one of these tablet producers is resistant to a partnership with Netflix to produce Netflix GO or partners with another streaming service such Hulu Plus instead. Netflix can use a combination of its strengths and opportunities successfully introduce Netflix GO. They need to take advantage of their large customer base and introduce the product to them first. Some of the new titles need to be exclusively on the Netflix GO tablets. This will make current subscribers may wish to have access to those exclusive titles encouraging them to purchase a GO tablet. Furthermore, Netflix can appeal to their large customer base with a credible partnership of a company that commonly produced tablets such as
Because Netflix can be known for swapping out its roster, be sure to check out these standouts before the streaming company switches it
The average Blockbuster store carries roughly 1,500 movie titles. Netflix carries more than 12,000 titles. It has movies that you can't find anywhere else. And Netflix uses collaborative filtering technology to send you emails that alert you to movies that you might otherwise never consider. Netflix saw the video- and game-rental market moving to DVD and built its business around that trend. Netflix doesn't rent videocassettes, only DVDs (in part because they're lighter and cheaper to mail). Netflix was able to identify and implement a strategy fo...
§ There are a large number of substitute products. Netflix is in the business of providing personal entertainment at an affordable cost. Since any other form of entertainment is considered a substitute, Netflix?s industry is in direct competition with all other forms of entertainment, whether it be reading, physical exercise, regular television, etc. If trends in popular culture move away from those related to movies, revenues may be affected.
Companies like Amazon and Netflix are very effective in predicting what customers normally buy and watch. Knowing what your customers are or are not buying will allow you to position products that they are statistically likely to purchase based on recent transactions and activity. This is a powerful tool for Netflix because it keeps users engaged and actively using the service but also allows them to tailor their investments in content towards items that are more likely to keep users active on their site.
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
For short term, there aren’t many; because of Hulu, ticket sales have been decreasing since the year 2007. According to Kirsten Acuna, from Business Insider Many platforms like Hulu, or Netflix, were opening up and they were making a mark on the film industry slowly but surely. Long-term effects from the launch of Hulu and Netflix are the major drop in TV ratings. It is very rare today to find somebody sitting down watching a TV show and waiting through the commercials until the end. Some would even call it barbaric. Thanks to websites like Netflix and Hulu customers are able to get quality when they want and without any interruptions. In a world where patience is no longer a virtue, it is time to accept the mark the Netflix and Hulu had. The foundation that they built to help adapt not only now but further years to
Reed Hastings, co-founder of Netflix headquartered in Los Gatos, CA, began the company’s operations in 1997 after receiving an enormous late charge from a movie rental he returned long overdue. However, Hastings had the desire to be different than traditional movie outlets; whereas, customers had to drive to the location, pay a certain amount for each movie they rented, and were given a deadline in which to return the movie. Instead of using a method established by other video markets “to attract customers to a retail location, Netflix offered home delivery of DVDs through the mail” which eventually led to a booming business towards streaming forms of entertainment (Shih, Kaufman, & Spinola, 2009, p. 3). Today, Netflix exists along with several competitors; however, offers the most streaming content available for viewing, and continues to grow its subscriber base both domestically and globally. Although, direct and indirect competitors, acquisition costs, and several barriers present a financial threat for Netflix, the company has managed to grow with the acclamation of partnerships, expand to international territories, and vastly increase its price in shares of stock.
Video Rental and Streaming has partly been of the most significant avenues of the general home entertainment industry in the United States for many years. It promotes constructive development through various channels such as Information Technology, Public Multimedia and it also has a huge impact on people’s lives and their entertainment on demand. One of the best companies which provide this high-advanced service is Netflix, Inc (Netflix). It was incorporated on August 29th in 1997 in California by Reed Hastings & Marc Randolph; listed on NASDAQ as NFLX in 2002. Netflix is the world’s largest Internet subscription service streaming television shows and movies with over 40 million members in 40 countries (Netflix, 2013).
Netflix and Hulu both have a large library of movies and Tv shows. The biggest differences from the two services is that Hulu offers newer tv shows that follow live tv from the major networks like The CW, CBS, FOX and many others. Netflix and Hulu share a lot of the same tv shows but Hulu gets new episodes
In conclusion, the vast technology change opens many opportunities for Netflix to grow. By assessing the market environment and challenges, it enables Netflix to overcome the obstacles to remain as the market leader. To achieve the future growth, Netflix should implement both strategic and tactical approaches to compete with others. The strategic and tactical business plans for Netflix are improving content libraries, developing more partnership with production firms, and staying with the low-pricing strategy.
...a remarkable opportunity to grow in the industry and lead as an innovative provider, Netflix has much opportunity to satisfy its customers and maintain their attention with their revolutionary business growth (Martala, 2009). Their success goes beyond their product. As stated, it is a combination of their culture of high performance drivers and fosters the “freedom and responsibility” mindset (Elliott, 2010). Because of their innovation and gradual entry into the market, Netflix has the competitive advantage to add layers of products for growth for years to come. Currently, Netflix has the competitive advantage to increase price and retain their current customer base. Even more beneficial, is the opportunity to attract additional subscribers with their new features. To end this, combining their products, price, culture, and strategic plan makes Netflix innovative.
As the firm moves forward, top managers must pay attention to staying unique to sustain a competitive advantage. Netflix does not own their content, nor do they have any tangible assets. Netflix is a part of a broad range of network users. As technology continues to grow exponentially, Netflix will have to be readily adaptive to change and innovation. Technology never stops growing and evolving, therefore, Netflix’s business platform should never stop growing and evolving. At the same time, they must be careful to remain user friendly and customer centric by keeping the technology at a level where users will not have to obtain a certain set of technological skill sets.
Netflix was established by Marc Randolph and Reed Hastings in 1997 in California. Initially, the company offered a DVD-by-mail service for a monthly, flat rate subscription fee. Videos were sen...
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by
Woollacott, Emma. "Netflix Checks Piracy Stats To Help It Decide What To Buy." Forbes. Forbes Magazine, 16 Sept. 2013. Web. 23 Jan. 2014.