Swot Analysis Of Netflix

COMPANY OVERVIEW

Netflix is the provider of on demand online streaming of media and DVDs. The company headquarters in California, USA and is providing its services in North and South America, in Caribbean and in most parts of Europe. Marc Randolph and Reed Hastings founded the company in 1997 for the prime business of providing DVD on a fee per use basis. The business was a success and attracted huge customers and the subscribers were over 2 million within the first ten years of the formation of the company. The Netflix's streaming business had grown so quickly that within months the company had shifted from the fastest-growing customer of the United States Postal Service's first-class mail service to the biggest source of Internet traffic in North America in the evening. Netflix is considered to be the most successful dot com venture by The New York Times. The company announced the rebranding and restructuring of its DVD home media rentals. From the start the company operated in Unites States and now it is expanding in various continents and has captured various markets. With the recent pricing strategy where substantial increase in the monthly subscription has impacted the company negatively causing a loss in customers.

INTERNATIONAL CONTEXT

The company is operating in different countries around the globe and has to face many of the challenges of operating internationally. The impacts upon the company from different aspects are analyzed in detail. This transitional market landscape proves a challenge to Netflix as they must remain competitive with strong competitors in the DVD dominated market of today. In light of this challenging industry landscape the business strategies that the company has evolved will enable Netflix to ...

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...ITIES

• Digital Distribution; s digital distribution of video content becomes an increasingly popular viewing format, Netflix strategically positioned to serve as a bridge during the slow transition from physical DVD formats to digital streaming. Netflix is better positioned for this role than other firms because they already have an E-Commerce business model and a brand name.

• Partnerships and Profit Sharing Schemes; Partnerships with companies like Microsoft (Netflix compatible Xbox 360) allow Netflix to expand their subscription base and Netflix compatible streaming devices. Profit sharing schemes with studios allow Netflix to acquire exclusive distribution rights. Both new partnerships and profit sharing schemes should be sought to increase Netflix’s subscription base, profits, and establish themselves as the frontrunner in providing digital home entertainment.