Swot Analysis Of Netflix

Netflix uses their great customer service to keep customers happy which intern keeps customers from canceling there subscription to the service. If there is a problem that arises during the rental process such as a damaged DVD, or lost DVD during the shipping process, Netflix addresses the problem immediately, and never charges the customer for the problem. ? Netflix was the first company to offer DVD renta... ... middle of paper ... ...fering similar services, either directly or as a partnership with another organization. §     Emerging competition from digital cable and satellite companies that offer movies on demand.

Keep partnering with film production firms. Developing partnerships with many production firms is strategic to establish strong supply chain for Netflix. 4. Keep low pricing strategy Low pricing has been Netflix competitive advantage since the beginning. The brand image of Netflix is the low price.

Netflix utilizes a number of different advertising methods. Netflix created a coupon in the form of an enlarged movie ticket offering a free month of service. These “movie tickets” are given out at cash registers at all Best Buy stores and are included in packing boxes of most of the major DVD player manufacturers (Sony, Philips, Toshiba, Panasonic, RCA, etc.). Best Buy’s website also has a link directly to Netflix which is under the “DVD rental service” drop down menu. Each DVD mailer sleeve from Netflix includes a tear off “tell a friend” certificate with a promotion code that provides the bearer with a free month of service.

Netflix versus Blockbuster versus Video-on-Demand Strategic Issues in the Case Founded in 1999, Netflix is an online DVD rental service whose strategy and market success were predicted on providing an expansive selection of DVDs, an easy way to choose movies, and fast, free delivery via postal mail. The company’s strategic intent was to be the world’s largest and most influential movie supplier. The goal of the company was to make it a lot easier for customers to select and rent movies and to eliminate the hassles involved in picking up and returning them. Its strategy incorporates customer convenience and a wide selection of entertainment selections. Netflix provides extensive information to its customers to help them make good selections and identify films that they may like to rent in the company’s vast library.

Netflix also provides movie reviews written by Netflix editors, subscribers, and movie critics. In addition Netflix provides the average rating that other subscribers gave the title, and displays other titles that the subscriber might enjoy. Netflix has revenue sharing agreements with more than 67 studios and distributors, and also purchases titles directly from studios, distributors, and independent producers. The major competitors for Netflix are Movie Gallery, Trans World Entertainment, Blockbuster, and Intermix Media. Industry Trends Since 1999 the growth of spending on DVD purchases and rentals has been incredible.

Movies are sent to customers in prepaid envelope within 24 hours after the customer returns a movie. Located in San Francisco, Netflix still owns nation wide market through World Wide Web. In addition, customer can easily get the movies they like without leaving home. * Netflix provides customers unlimited access to the world's largest DVD library consisting of 10,000 movies. This in more than 10 times the selection of the Blockbuster.

Netflix is the world’s leading internet television network with over 69 million international subscribers. Recent studies show that Netflix is “soaring on subscriber growth” (Gensler). Despite its recent small price increase from $8.99 to $9.99 in October of 2015, Netflix subscriber growth still surpasses its own forecast (Snider). According to Statista, an informative and accurate statistics website with clients such as Google and ESPN; in 2015, Netflix has grown from 62.3 million subscribers in Quarter 1 which goes from January 1st to March 21st, to 65.6 million subscribers in Quarter 2, April 1st to June 30th and 69.1 million subscribers in Quarter 3, July 1st to September 30th. Compare these numbers to the 20 million subscribers back in

Netflix’s annual growth has grown from $1.2 billion to six times the rate, $6.8 billion. According to the New York Times article, if you are a Netflix subscriber, using the Customer Lifetime Value metric, “the lifetime value of a Netflix customer is $291.25.” (Nocera, 2016) Netflix estimates that it cost them $150 to earn each customer and with overhead being very low, they make money not just at the beginning but the lifetime of the customer. Additionally, by tracking customers individually, Netflix can optimize their lifetime value through marketing their products and services to match the individual customer’s needs, called “market of one” (2000). (Kopf,

When debating Netflix and movie theaters the factors to consider are convenience, variety, price, and the experience. These are the four most important factors, because people want the best quality that is the most cost effective. Through my research, I show that movie theaters have an unsurpassed experience associated with them, but Netflix is convenient, affordable, and has a wide array of programs. The first factor to consider is convenience. Netflix can be the simplest choice, because the average person does not have to leave the house.

There are over 100 shipping location in the United States. Netflix offers over 100,000 DVD titles and over 8,000 that are ready to be watched instantly on a subscribers PC. Netflix has over 1500 fulltime and 1100 part time employees at their headquarters and shipping centers. This had made Netflix the top ranked e-commerce company in customer satisfaction and that is causing a rapid growth in subscribers, revenue and earnings. How does it work?