SWOT Analysis - Netflix

Extract

[...] Netflix can use this analysis to figure out how to exploit external opportunities, counter threats, build on and protect strengths, and eliminate its weaknesses. It is important for managers to perform a SWOT analysis as it will provide signs for company improvement, rectification and direction. Strengths Netflix has a global customer base as it streams its content across 190 countries and has 195.15 million subscribers. This large number of subscribers gives the company strong bargaining power for obtaining its desired licensing agreements for independent content. [...]

[...] Opportunities Netflix is not available in China. China has a very large population and an advanced technology sector. The company could gain many more subscribers if it were to expand into the Chinese internet market. Penetration into new markets could help Netflix to expand its product mix and business endeavours. Netflix could also put its revenues towards research and development in order to come up with new ideas for business as well as the possibility of the creation of complementary products. [...]

[...] In 1999 subscriptions were introduced to offer members unlimited DVD rentals. Netflix made its initial public offering under NASDAQ at a selling price of per share in 2002. Memberships raised over 5 million in 2006 and in 2007 the site introduced streaming (members are able to watch series and movies instantly by using internet connection). In 2012, memberships surpassed 25 million and Netflix's services expanded into the United Kingdom, Ireland and the Nordic Countries (Netflix, 2020). As of the third quarter of 2020, Netflix had 195.15 million subscribers worldwide (Stroll, 2021). [...]

[...] Netflix must make sure to capitalize on technological innovations that may occur in the future in order to satisfy and retain its consumer base. Netflix must make use of their opportunities as well as strengthen their security to prevent hacking and digital piracy. Content must stay up to date with the latest trends in order to keep customers coming back for more. References Netflix The story of Netflix. Netflix. Online at: https://about.netflix.com/en Stroll, J Netflix subscribers count worldwide 2011-2020. Statista. Online at: https://www.statista.com/statistics/250934/quarterly-number-of- netflix-streaming-subscribers-worldwide/ Beers, B How Netflix pays for movie and TV show licensing. Investopedia. https://www.investopedia.com/articles/investing/062515/how- netflix-pays-movie-and-tv-show-licensing.asp Netflix Overview of content accounting. [...]

[...] A strong internet connection is needed for consumers to be able to watch Netflix. Thus, Netflix has to rely on internet service providers and the strength of their connections. A poor connection may reduce customer satisfaction. This reliance on a third party to deliver its content makes Netflix vulnerable to unhappy customers and as a consequence, the loss of their business. Netflix has received bad reviews for their lack of environmentally friendly practice. Their competitors such as Amazon have made it clear that they have environmentally sustainable business practices in place, whereas Netflix has not. [...]