Netflix SWOT Essay

Movie is common entertainment over the world, so Netflix has an opportunity to challenge abroad by online service platform.

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

Netflix is in a fairly favorable position on the strategic group map. Where Added value is measured in terms of instant movies and recommendations, and market coverage is measured in number of stores, vending machines, and online presence.

Netflix exhibits dominant economic characteristics in the online movie rental business. They enjoy strong market size and growth rate when compared to rivalry competition. The number of rivalries are increasing, and the market remains dominated by only a few sizeable rivalries like Blockbuster Video, Wal-Mart, Walt Disney Movies and Movielink’s Downloadable Movies. Netflix is determined to offer new and innovative technology to sustain their competitive advantage.

These days, technologies changed the world in several aspects. In the entertainment business, the digital technologies have influenced the people to have a preference on home movies over cinemas. A streaming video content over the internet continues to grow in popularity with consumers because of many reasons such as high speed internet, interesting video content, and convenient streaming device. And the most well - known streaming service that has a large number of user in this decade is Netflix, an American entertainment company that was founded in 1997 by Reed Hastings and Marc Randolph. According to the statistics from recode.net, Netflix now has nearly 118 million users globally.In Thailand, there are two popular streaming service which

There are new opportunities for the industry. With the advancement of technology many companies can take advantage of the Internet. Currently Netflix expects to spend $7 million-$14 million this year on its Internet Video-On-Demand offering, which it will launch during 2005. Along with opening more distribution centers, this will cut down on delivery costs and time. They expect Internet VOD to have little

Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

Furthermore a study showed that between all the streaming companies available in the country, customers tend to stay longer with Netflix (82% do not cancel their subscription after 60 days) than with the others. The existing popularity can be a highly important factor of its success in this

In many ways, Netflix is an amazing company to analyze. By being disruptive, the company has changed drastically the disc rental business and the streaming industry. In addition, the ecommerce business model Netflix has developed was one of a kind, focusing mainly on the consumer’s needs and experience. Now, it might seem obvious that ecommerce marketers should focus on these aspects but at the time it was a first.

The NetFlix web site also integrated movies currently showing in theaters by providing the ability to check local listings and show times, as well as the ability to view movie trailers on its web site. In addition, the NetFlix web site kept track of each subscriber’s preference for various types of movies and provided an individualized predicted rating for all of the movies on the web site. Since launching its web site in April 1998, NetFlix had experienced rapid growth. Revenues had grown from $1.4 million in 1998 to $5.0 million in 1999. The number of full-time employees increased from 46 in December 1998 to 270 in December 1999. By March 31, 2000, NetFlix had over 120,000 paying subscribers. Typical of most Internet startups, however, NetFlix had not yet earned a profit, reporting net losses of $11.1 and $29.8 million in 1998 and 1999, respectively. Exhibit 1 and Exhibit 2 provide annual financial statements for 1998 and 1999. Exhibit 3 provides quarterly operating results for 1999. The NetFlix business model focused exclusively on the new DVD format technology. Management had four main reasons for focusing on this specific segment of the home video market. • DVD players were the fastest growing segment of the video player market. Because of the rapid adoption of the new DVD technology, sales were

Strengths Brand name - Netflix has established a brand name that is widely recognized and many studies have shown that the company has a stronger brand identity among its competitors. It serves more than 65 million users in over 40 countries, Netflix is the dominating subscription streaming video service. They have the largest collection of videos and continues to build up its library with its own original content and higher quality movies. Netflix has become the most favored subscription video streaming service in America, and is found in more than 36% of U.S. homes as compared to its competitors such as Amazon Prime Instant Video at 13% and Hulu Plus at 6.5%. The name itself, is intertwined with the online movie streaming industry. Large amount of content – Not only does Netflix have a variety of content from well-known companies such as Disney, it also has international and original content as well. Netflix streams 4,335 movies, 1,197 shows, and 133 movies and shows of its own original content. Some of Netflix’s well know pieces include “House of Cards” and “Santa Clarita Diet.” This mix of original and well-known content contributors creates a loyal customer base.Easy user experience/platform – Netflix has devised a way to use specific algorithms to collect data in order to adapt itself to each user uniquely. This cuts down on the time users need to invest when searching for specific content. If the user doesn’t find the content they are looking for in this manner, Netflix also separates its content into categories, making it easy for users to simply search for the types of movies or shows they would like to view. A user can also search by title name in the search bar or search by genre. Netflix can even personalize each user experience by allowing their customers to create multiple viewer profiles.

Starting off as a mail-only service in August of 1997, the service rapidly bloomed into an online, paid source for thousands of movies, series, and other TV shows. Although their streaming option is the most favored, Netflix still offers users the opportunity to order DVDs and other forms of tangible movies. All in all, Netflix holds a multitude of positive and negative effects on society, both which include instant accessibility, immediate forms of entertainment, binge-watching, and unproductivity. Lastly, Netflix may soon become an overwhelmingly large company that takes the television and video distribution industries by storm due to its growing popularity and its ability to be cheaper than regular cable

Netflix began in 1997 as a revolutionary idea by CEO Reed Hastings and software executive March Randolph. Before long, in 1999 Netflix launched its major line of business, the online subscription service, which radically changed the way consumers viewed movies and television. For a young company in an innovative and growing industry, Netflix has set itself up for a tremendous journey. The company has had much success due to its adaption of a modern business model and strength in operations management. Its continued reliance on and improvements of operation management principles is necessary to continue growing and bringing in profits.

For netflix's business portfolio they outline that their main area of focus are online DVD rentals via online streaming (Netflix ,2010). It is clear from this that netflix have outlined that they aim to provide a service that they hope many people across a broad market will be able to use. With this in mind they would be able to generate a large revenue. Netflix is operated on the basis that you pay a monthly subscription and in

The business model of Netflix is simple. It is broken down into 3 main components: