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
A critical SWOT analysis of Netflix’s social media techniques clearly shows they are ahead of the game and not backing down from rising competitors like YouTube which is gaining viewers by increasing the amount of online content.
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.
middle of paper ... ... Despite the increases in revenue and subscribers, however, some analysts feel that the business model is “fatally flawed” and the company may fall by the wayside due to competition from the aforementioned retail and entertainment powerhouses.” Investors Guide reported this. A good thing for Netflix is the fact that they have teamed up with Wal-Mart.
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.
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).
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...
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.
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.
...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.
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
Although small and somewhat niched in it's early stages, Netflix provided a very innovative option for consumers: it had great variety of content, no late fees, Internet-based platform, and an easy delivery service. Although it provided the same service as Blockbuster, Netflix, was a company that focused on the experience of its customers. While Netflix was busy making a name for itself and growing, Blockbuster ignored its newest competitor's model, and continued to operate as usual. Skip a few short years ahead, and Netflix crept up to Blockbuster as a major competitor by the mid 2000's. (Satell, 14, para.
A lot of arguments had been made about how Netflix now and how it's grabbing attention from all the other companies and not giving anybody else a chance as mentioned by Perry (2015). Netflix fought all the way through to get to the top and they never failed their customers in anything. Although they knew that it wasn't easy to produce original material they did their best and succeeded at it mentioned by Nocera (2016). A lot of people looked back at back at the origin of Netflix and their story of success and it was full of struggles, competitors, decision making and a bunch challenges. Lev-Ram (2016) talked about their smart strategy to get more subscribers.
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.
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.