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
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...
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).
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.
S. W. O. T. Analysis Strengths:.. ? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month, which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead the market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee.
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.
According to Mcalone (2016) Netflix made a lot of history by mailing DVDs, with no late fees, great selection, recommendation system and a good pricing too. They made us especially young generation to believe in their network by making us try a whole free month of free movies and TV shows and they were smart by doing that because us as a younger generation drag our parents and elders into new technology and fashion. Its obvious they made money, but they didn't stop there they offered us more options and movies for us
From its inception, Netflix has become a business based on superior customer service and has subscribed its business to the market marketing management philosophy. The main purpose behind Hasting’s idea of a better way to rent and enjoy movies was how to provide that service to their clients and not have any late fees. In other words, their customers could enjoy their rentals from Netflix for as long as they wanted, and they would never have to worry about late fees again, so long big movie rental chains! This aspect alone of Netflix’s marketing plan indicates that Netflix has based their marketing plan on market orientation, “a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product,” (Lamb, 2009, p.7). Many companies that take on this philosophy are said to implementing the market concept. The marketing concept states: “The idea that social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting orga...
As the CEO of Netflix, I would consider Amazon and Hulu as presenting the greatest challenges to the success of Netflix in the future. Currently, Netflix accounts for 53% of streaming subscription services (Weise, 2016). Two of Netflix’s closest competitors, Amazon and Hulu, account for 25% and 13% respectively, and would therefore likely pose the greatest challenges for Netflix. Recent surveys by Jefferies, an investment banking firm, concluded that many Netflix customers who face a planned 2016 price increase will likely cancel subscriptions (Kim, 2016). Many of these former Netflix subscribers are expected to switch to Amazon streaming services.
As of 2015, Netflix is in 1/3 of American households, whereas Amazon Prime is only used by 13% of American Households. Moreover, when looking at market shares, Netflix has a 37% market share. In contrast, services such as Youtube have only 17% and Amazon has 4% market share (Fortune).
The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard...
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.
The idea inspired Reed Hastings and Marc Randolph, and then they founded Netflix in Scotts Valley, California in 1997 (Netflix, 2014). The company comes into play by developing a subscription-based streaming platform for movies and television shows. Unlike the traditional movie rental businesses such as Blockbuster and Redbox, Netflix’s innovation offers service via Internet, and it does not have any physical stores but instead delivers DVDs through postal mail in the U.S. Since then, Netflix has become the world’s leading internet television network with constant growth of customers to over 48 millions members in more than 40 countries in the North America, Europe, and the Latin America (Netflix, 2014). In this analysis, the main focus is examining the current market environment for Netflix. It identifies the type of market structure that Netflix is currently competing. The analysis also expands on the competitions, product differentiation, pricing strategy, and measuring the level of easy entry-and-exit.
Are you one of those people who think about cancelling their Netflix movies subscription, at least once a year? Do you constantly wonder whether the Netflix subscription is really worth theits money? In my opinion, there are numerous reasons why Netflix is, in fact, worth theits money, especially because experimental creators who will createdo movies and series that no one else in Hollywood is willing to pay for usually develop their projects, as funded Netflix movies. I’ve recently read that Netflix is inclining to grow their portfolio by another 80 original titles in 2018 alone! Now, I mean there’s gotta be some good Netflix movies there.
1) Netflix’s currently does not have a user-friendly method for customers to stream videos onto television sets. Netflix is entering agreements with the manufacturers of game systems, Blu-ray disc players, and televisions to include software capable of streaming Netflix videos. 2) 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.
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...