Netflx Case Analysis

377 Words2 Pages
Netflix: Case Analysis Core Strategy: Netflix’s main strategy is to grow their large subscription business which combines both streaming TV/movies and DVD’s by aggressively pursuing new content deals. They realize that the more content that they can offer their consumers, the more subscriptions they will sell, and the more loyal their current customers will be. Additionally, Netflix recognizes that their competition is quickly adapting to their current content strategies; therefore, they expect to further develop their advantages such as brand, distribution, and their proprietary merchandising platform. Strengths: * High online retail customer satisfaction ratings and high customer loyalty produces excellent word-of-mouth. * Largest online media retailer. * Low cost with fast, free, reliable delivery system. * Advanced technology that can customize and enhance the subscriber’s experience by providing recommendations, etc. * Lack of commercials. Weaknesses: * Lacking in new content (lag time) * No publicly available mission statement or vision statement. * High dependency on Amazon as its cloud provider. * Little to no international presence. Opportunities: * Growth in international markets outside of U.S. and Canada * Continued growth with mobile devices and tablets to follow the current market trend * Movement into the kiosk market to give customers another option, and to take market share from RedBox and Blockbuster. Threats: * Possible increased political/legal regulations on online content. * Content deals becoming more expensive. * Issues with renegotiating contractual agreements with distributors and electronic partners because of their short term contractual agreements. * Numerous websites that offer free online streaming. * High threats of substitution (On Demand, Hulu, Apple, Google
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