A SWOT analysis is an organized list of a business’s greatest strengths, weaknesses, opportunities, and threats. The point of a SWOT analysis is to help develop a strong business strategy by making sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace. We will now analyze the SWOT of Netflix.
With a company as large as Netflix there are a lot of strengths associated with why the company has become so successful. Brand is important as everyone knows the company’s name and general company feedback is positive. Of all the major streaming services, Netflix has the best streaming delivery system which helps keep customers loyal. This allows for Netflix platform to be a strength. Netflix boasts a strong selection of content, from original series to purchased content from large media companies. Netflix provides customers unlimited access to the world's largest DVD library consisting of 10,000 movies. The low price of $7.99 for all you can watch allows for a cheaper option than going the movies. Netflix incurs less overhead because no storefront is required and less employees are hired. As the world's first online DVD rental store, Netflix attains first-move advantage. Lastly, an underrated strength of Netflix is that in the event of dissatisfaction, customers can cancel their membership whenever they want.
It is virtually impossible for a company to be strong in all areas. Naturally there are some weaknesses associated with any company. Netflix experimented with trying to raise prices, which didn’t sit well with consumers and caused Netflix stock to stumble. Another major weakness is Netflix incapability of guaranteeing available new releases for those customers still having DVD’s mailed directly to their home. Sales are starting to decline for that DVD subscriber base. Show ownership is also a weakness in that Netflix has to bid for a lot of its original series...