The 2011 and 2021 Netflix's SWOT Analysis
This case study will require you to produce 2 different SWOT analyses,
in addition to analyzing the key questions posed below. Your written response to these
questions should be approximately one to two pages long, 12pt font, double spaced. In addition,
you can either place each SWOT analysis on its own page, or present both on a single page.
Please make sure to title each SWOT analysis appropriately. In total, your final submission will
likely contain 3-4 pages, and must be submitted in a .docx format.
After reading the case study, please prepare the following:
1. A SWOT analysis for Netflix, in 2011. Note: The case ends in 2011, so your SWOT analysis should reflect Netflix’s position at the end of the case
2. Much has changed in the world of streaming services since the end of this case.
Please also prepare a SWOT analysis that reflects Netflix’s position today, in 2021.
After preparing the two different SWOT analyses, please prepare a one to two page response that answers the following questions:
1. Describe the change that Netflix decided to make to their service offering, and explain how they communicated this change to their users.
2. If you were the CEO of Netflix, what would you have done differently in this situation?
3. Looking forward to the present day, do you think Netflix made the right choice in splitting their DVD by mail business from their streaming business?
4. How much of a threat is competition today to Netflix?
The 2011 and 2021 Netflix's SWOT Analyses
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The 2011 and 2021 Netflix's SWOT Analyses
Introduction
Netflix Inc.'s success and growth can be attributed to its competitive advantages and business strengths, which have allowed it to expand globally and dominate the market. The overall competitive advantages are one of the company's SWOT factors' net results. Netflix's SWOT review from 2011 can get used to making critical strategic decisions to achieve business goals (Sakal et al., 2019). Weaknesses, Opportunities, Strengths, and Threats are the four components of a SWOT report. Netflix Streaming's weaknesses and strengths are internal causes, while opportunities and risks emerge from changes in the external world in which it operates (Gabrielli, 2017). The following 2011 and 2021 Netflix's SWOT review will help us understand Netflix Streaming's current competitive advantage and determine how things must change to preserve and consolidate it.
The 2011 Netflix's SWOT
Strengths
- An experienced and professional leadership team
- Solid Balance Sheet
Weaknesses
- Limited international market experience
- Low profitability, which may limit the latest project investment
Opportunities
- Artificial Intelligence Advancements
- Profitable Prospects in International Markets
The 2021 Netflix's SWOT
Strengths
* A large number of customers.
* Binge-viewing.
* Zero advertising.
* Pricing is an important consideration.
Weaknesses
-Operational costs are rising.
-Copyrights are not wholly owned.
-It is raising its prices.
Opportunities
-Netflix has a massive global customer base but has yet to tap into the Chinese market. It will be one of Netflix's most significant opportunities. About 500 million Chinese people use their mobile devices to watch videos (.Shattuc, 2020).
-Because of Europe's diversity, there several untapped markets that speak languages other than English which Netflix might tap.
-Netflix will make more deals for their content due to the growing affordability and availability of 4K and VR technology.
Threats
-Since the market is so lucrative, there has been a significant rise in competition.
-Facebook, YouTube, Amazon, and Hulu are all fighting for a slice of the action.
-It is almost challenging to eradicate digital piracy.
Consumers used to go to the cinema, rent DVDs or VHS tapes, and watch whatever was on live TV before Netflix. Consumers can now instantly stream content to any computer, anywhere. Netflix should revolutionize the way consumers can access TV and films. Consumers are no longer tethered to the television and forced to watch adver...