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作答样例:
SWOTAnalysisofNetflix
Strengths:
ExponentialGrowth
BrandReputation
GlobalCustomerBase
Originality
Adaptability
Customer-CentricService
AffordablePricing
Award-WinningShows
Weaknesses:
LimitedCopyrights
IncreasingDebt
LackofGreenInitiatives
RigidPricing
Over-dependenceonNorthAmericaMarket
SupportShortages
RaisingPrices
GrowingOperationalCosts
Opportunities:
Low-PriceMobileStreamingOption
ExploitAd-BasedModel
ExpandGlobalCustomerBase
RefreshContentlibrary
Alliances
NicheMarketing
IntroduceCheaperAnnualSubscription
Threats:
CompetitivePressure
Piracy
MarketSaturation
AccountHacking
CarbonEmission
GovernmentPressureduetoCapacityIssues
Netflix’sStrengths—InternalStrategicFactors
ExponentialGrowth—Inthepasttenyears,NetflixhasbecomeaninfluentialbrandforonlinestreamingcontentnotonlyintheUSbutacrosstheworld.
BrandReputation—Netflixhasrisentobecomeahousehold—namewithinashortperiod.In2021,AccordingtoInterbrand,Netflixranks#36—withabrandvalueof$15.0billion.Someclosecompetitorsonthelistareasfollows:
#10—Disney($44.1billionbrandvalue)
#19—Facebook($36.2billionbrandvalue)
#26—Youtube($20.9billionbrandvalue)
#66—Spotify($9.8billionbrandvalue)
GlobalCustomerBase—Netflixisservingover190countriesacrosstheworld,havingaglobalcustomerbase.Thereareover167millionsubscribersofNetflix,anditgivesthecompanyastrongbargainingpowerwiththestudiosforsecuringexclusivecontent.
Originality—AnotheroneofitsstrengthisthatNetflixhasbeenproducingoriginalcontentovertheyearswiththehighestquality.SomeofitsshowslikeTigerKing,Strangerthings,MoneyHeist,Narcos,Mindhunter,andOrangeIstheNewBlackbecamesopopularthatitssubscribercountkeptincreasingoverthequarters.
Adaptability—Netflixadaptedtovarioustechnologiesinstantlybyprovidingstreamingonallinternet-connecteddeviceslikepersonalcomputers,iPads,mobiledevices,andtelevisions.Duetothis,theirbusinessgrewimmenselyovertheyears.
Customer-CentricService—Foralongtime,customerswerelookingforanofflineoptiontowatchNetflixcontent,incaseoftravel(plane,subway)orbadinternetconnection.Asaresult,Netflixintroducedadownloadnow(offline)featureforcustomerstowatchtheirfavoriteshowsonthego.
AffordablePricing—ThepricingstrategyofNetflixhasgivenitleverageoveritscompetitors.TheplansthatNetflixhasdesignedareaffordableandoffergreatvalue.Subscriberscanwatchunlimitedmovies,eitheronDVDorstreamingforanaffordablepriceof$8.99amonth.Itislessexpensivethancablemoviesorgoingtothecinemaandalsooffersawiderselection.ForahigherqualityUltraHD(4K+HDR)streaming,subscriberscanevengetpremiumplansat$15.99permonth.
Award-WinningShows—ItisnotasurprisethatthepopularityofNetflix’soriginalshowshasbeengrowing.Inaddition,Netflixhasbeenbeatingtraditionaltelevisionnetworks(HBO,NBC)innominations.In2020,Netflixhasreceived160nominationsattheEmmyswhereastraditionalTVnetworkshavereceivedthefollowingnominations:
HBO—107nominations
NBC—47nominations
ABC—36nominations
FOX—33nominations
CBS—23nominations
Netflix’sWeaknesses—InternalStrategicFactors
LimitedCopyrights—Netflixdoesnotownmostofitscontent,andthisaffectsthecompanynegatively.Therightstakenfromotherstudiosexpireafterfewyears,andthatcontentstartsappearingonothersites.
IncreasingDebt—Netflixisservingitsdiversifiedcontentinmanycountriesaroundtheworldwhichrequireshugeamountsofmoney.Netflixkeepsaddingtoitslong-termdebttofundnewcontent.AsofApril2020,Netflixreported$14.17billionindebtandplanstoraise$1billionmorethroughadebtoffering.Theincreaseindebteveryyearisamajorweakness.
LackofGreenInitiatives—Netflixhasstillnotutilizedrenewableenergyandhasn’tcreatedabusinessmodeltopromoteenvironmentalsustainability.Contrarytothis,techcompanieslikeAmazon,Google,Apple,andFacebookhavealreadystartedusingrenewableenergytohelpsustaintheenvironment.Thefourtechgiantshavecommittedtousing100%renewableenergyfortheirbusinesses.ThelackofgreenenergyutilizationhasanegativeimpactonthebrandimageofNetflix.
RigidPricing—Customersdemandcustomizedpricingwithmoreoptions.Unfortunately,Netflix’spricingmodelisrigidwithonlythreetiers,Basic,Standard,andPremium.Thelackofdifferentoptionshascontributedtostagnationinthenumberofnewsubscriptions.
Over-dependenceonNorthAmericaMarket—EventhoughNetflixoperatesglobally,itreliesheavilyontheNorthAmericanmarket.Inthefiscalyear2019,Netflixreported$10.05BillionrevenuefromNorthAmerica,whichrepresentsabout50%ofitstotalrevenue($20.15Billion).ThisamajorweaknessbecausetheNorthAmericanMarketisnearingsaturation.
SupportShortages—ThenumberofNetflixusersandhackedaccountsincreasedinthefirstsixmonthsin2020becausepeoplewerestuckathomeduetoPandemic.Tomakemattersworse,Netflixreducedsupporthours.Userswerefrustratedbytheshortageofcustomersupportandhadtowaitlongertoretaketheiraccountscompromisedfromhackers.
RaisingPrices—Netflixhasraiseditssubscriptionprices,whileothernewvideostreamingservicessuchasDisney+($6.99permonth)andAppleTV+($4.99permonth)haveintroducedtheirservicesatmuchlowerprices.
GrowingOperationalCosts—AddingmorecontentgivesNetflixacompetitiveadvantage,butthecostofsupportingthecontentkeepsgrowing.In2019,thesteamingcostwas$14.61Billionandtheamounthasexceededfromthespendingof$12.04Billionin2023.
Netflix’sOpportunities—ExternalStrategicFactors
Low-PriceMobileStreamingOption—Netflixcanofferalower-pricedoptiontoenticeandretainsubscribersininternationalmarket.Netflixhasbeentestingacheapermobile-onlyplaninIndiathatcostsonly$3/month.Itcanexpandthislower-pricedoptiongloballytocompetemoreeffectivelyagainstcheaperalternativeslikeDisney+,Apple+,Peacock,andsoon.
ExploitAd-BasedModel—Google,Amazon,Facebook,andmanyotherserviceprovidersmakebillionsinrevenuefromadverts.Netflixcanboostitsrevenuebyadoptinganadvertising-basedbusinessmodel.
ExpandGlobalCustomerBase—Withsuchahugecurrentsubscriberbase,Netflixcantapintomanyothercountriesandexpanditsservicesandsubscribers.Theycanstarttotargetthecountrieswhereitiscurrentlynotavailable.Recently,Netflixexpandeditsoperationsandaddedafewmorecountriesonitsoperationlist.However,itisstillunavailableinCrimea,Syria,etc.
RefreshContentlibrary—Itcanexpanditscontentlicensingbyincreasingthecontractswithvariousmoviedistributors.Additionally,Netflixshouldrefreshitscontentlibraryasitisnowproducingitsoriginalcontent.
Alliances—Itcanalsopartnerupwithvarioustelecomprovidersandofferbundlepackagesindifferentcountries.AlliancesandpartnershipscanprovetobebeneficialforNetflix.Inthepast,NetflixpartneredwithChannel4.Itcanformmoresolidpartnershipswithlocalbroadcasters.
NicheMarketing—Producingregion-specificcontentintheirlocallanguagesisalsoanotherbigopportunityforNetflix.NichemarketinghasbeenprovenbeneficialforNetflix.Forexample,itstartedanoriginalTVseries‘SacredGames’inIndia,andSpanishseries‘LaCasadePapel’(MoneyHeist),whicharemassivehits.
IntroduceCheaperAnnualSubscription—WheneverNetflixreleasesneworfreshcontent,userswilloftenpayforonemonthonlyandbinge-watchalltheirfavoriteshowswithinashortperiod.Netflixlosesalotofrevenuebecauseuserscancanceltheirsubscriptiononcetheyhavegonethroughallthenewcontent,withoutanypenalty.Thecompanycanincreaseitsrevenuebyintroducinganannualsubscriptionwithdiscountstoencouragemonthlysubscriberstoswitchtoyearlyplans.
Netflix’sThreats—ExternalStrategicFactors
CompetitivePressure—Netflixisnottheonlyonewhichprovidesdigitalstreamingaroundtheworld.Itscompetitorkeepsincreasingeveryyear.Disney+,AppleTV+,HBO,Amazon,Hulu,andYouTubearecompetingcontinuouslywithNetflixbygivingrepeatedaccesstonewandoriginalcontenttoitssubscribers.
Piracy—Digitalpiracyisstillatitspeakasthousandsofpeoplearoundtheworldfindwaysofdownloadingmediacontentbecauseofhighmonthlycostswhichtheycannotafford.ItisanotherbigthreatthatNetflixfaces.
MarketSaturation—Netflixadded420,000U.S.subscribersinQ4of2019andlowerthanitstargetof600,000.InCanada,itstargetwas218,000butitaddedonly125,000subscribers.Forthethirdquarterinarow,theNorthAmericansubscribergrowthhasslowedbecausethemarketisreachingsaturation.Netflixwillfindithardertoaddnewsubscribersinthefutureduetomarketsaturation.
AccountHacking—ThenumberofhackedNetflixuseraccountsincreaseddrasticallyinQ1andQ2of2020withtheincreaseindailyusersduetolockdown.Ifaccounthackingpersi
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