Netflix SWOT Analysis

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Netflix SWOT Analysis
Globally, Netflix is well documented as a streaming serving corporate, which is located in Los Gatos. The company operates by providing subscription services to the existing and prospective customers where it streams varieties of entertainment, for instance, movies. Most importantly, the company offers these services via the internet and mails where DVDs are sent, besides the firm functions in diverse segments such as international and domestic streaming. Each component has unique functionality; domestic streaming accommodates monthly revenues from the United States individuals. As a result of new-fangled competence implementation, the firm has been able to stream movies effectively to its customers. However, Netflix experienced upheavals in decision-making after the CEO resolved to split the corporate into two accounts, streaming and DVD corporates. This condition led to a loss of customers as the DVD business seemed expensive compared to streaming. During the same period, the CEO resolved to upsurge the subscription fees, which affected the subscribers. Due to the instant changes in service provision, about 805000 customers shifted their subscriptions.
SWOT analysis in 2011
Strengths
After Reed Hastings, the firm's CEO, resolved to separate Netflix into DVD and streaming enterprises; it emerged as the primary DVD leaser, which was conducted through the customers' mails. This situation allowed the business to offer quality DVDs collections to their subscribers. Reasonably, the items were new-fangled in the market, and thus customers could perform their evaluation effectively (Wesley 4). Further, the firm portrayed a clear image in offering inimitable services as they did not face stiff competition in the marketplace due to minimal contestants (Wesley 6). Netflix created an online relation which the DVD leasing production services, which led to business achievements.
Weaknesses
Netflix streaming company encountered various problems during and after 2011 decisions. In particular, the corporation proffered insufficient copies of popular movies in various theatres. After the new structure was fully implemented in Netflix operations, competition from other mainstream bodies arose since the existing subscription fees were increased (Wesley 6). For instance, satellite services proffered free video streaming, and as a result, many customers were attracted and shifted to the mainstream. This situation was initiated as most of the Netflix customers deployed satellites for internet availability. As a result of the free offers from cable providers, the content from Netflix firm became unessential. Besides, in streaming services, the firm did not provide updated films to their customers due to retardation caused by content providers engaged in competitors' contracts (Wesley 8). Further, Netflix failed to provide an online catalog, which was to minimize the streaming competition it faced. Consequently, Netflix purchased defective copies of available movies.
Opportunities
After the DVD launch, the availability of movies to customers increased due to a per screening basis. This condition was initiated by the fact that individuals could watch movies with no time and frequency limit. In particular, no due dates are fixed on DVD, and hence customers can effectively obscure films. Also, several organizations helped the firm uphold service suppliers, such as links to videos in DVD mode (Wesley 8). Netflix got the opportunity to distribute their movies to customers' computers, increasing the possibility and easiness of watching the items. Subsequently, the client's reality increased, leading to market expansion.
Threats
Netflix wanted to lose its dependable image to existing and prospective customers. This threat emerged after the firm showed retardation in the marketplace due to insufficient production of copies. Elimination of the natural image could have led to the deprivation of the market existence of the company (Wesley 8). Lack of hardware improvements another threat to the company due to a lack of knowledge in the same area.
Current SWOT analysis
Strengths
Business evolvement and flexibility is a critical feature in ongoing performance of Netflix company. The company has shown several transformations through massive accommodation of incoming changes. For instance, the corpor...