Apply: Signature Assignment: Contingency Plan and Executive Presentation

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BUS/475v11

SWOT Analysis

BUS/475 v11

Page of

Jorge Garcia

University of Phoenix

BUS/475

December 7, 2020

SWOT Analysis

Selected organization: Netflix

Complete a SWOT analysis for your chosen company. Each analysis should be 75-100 words.

Strengths

How much Growth

Global customer base

Adaptability

Weaknesses

Limited Copyrights

Rigid Pricing

Support shortages

· In the Past ten years, Netflix has become an influential brand for online streaming.

· Netflix is serving over 190 countries across the world and over 167 million subscribers.

· Netflix adapted to various technologies instantly by providing streaming on all internet connected devices.

· Netflix does not own most of its content.

· Customers demand customized pricing with more options. Netflix only offers three options.

· The number of Netflix users and hacked accounts increased in the first six months in 2020 because people were stuck at home due to the pandemic.

Opportunities

Low price mobile streaming option

Expand Global customer base

Refresh content library

Support black educational institutions

Threats

Competitive Pressure

Government regulations

Account Hacking

Piracy

· Netflix can offer a lower-priced option to entice and retain subscribers in international markets.

· With such a huge current subscriber base, Netflix can tap into many other countries and expand its services and subscribers.

· It can expand its content licensing by increasing the contracts with various movie distributors.

· Netflix has pledged 2% of its holding going forward to support Black communities.

· Netflix is not the only one which provides digital steaming around the world. EX. Disney+ , Apple TV+, HBO

· Strict governmental rules and regulations regarding service providers like Netflix in many countries can be a big threat for them.

· The number of hacked Netflix accounts increased drastically in Q1 and Q2 of 2020 with the increase in daily users due to lockdown.

· Digital piracy is still at its peak as thousands of people around the world find ways of downloading media content.

Analysis

The SWOT Analysis of Netflix highlights where the brand currently stands and the threats it is facing in this time around. I will give a few suggestions for Netflix that I think could help the better improve or do better at. Netflix could tap into new geographical locations by partnering up with their local cable providers and streaming their local content as well as international content in various languages. By doing so they will gain more profits and subscribers as well. To avoid digital piracy, Netflix should strengthen their security and expose whoever is behind digital, they can also provide even more generous subscribing packages for different economic classes. I have delt with this firsthand when I first started to pay for my subscription, I would notice a lot of people trying to steal content from my account and Netflix in general. Improve their application and website by providing a more user-friendly interface for their subscribers.

So, by Netflix expanding to so many countries and being such an influential brand, they can offer a lower-priced option to entice and retain subscribers in international markets. Also, since Netflix has connections with accounts it has given them the opportunity to give back to the black communities in need with all this social injustice going on not just in the United States but all over the world.

One of Netflix’s weakness starts with them only offering three options on their pricing and people like to have more options to choose from, to have more control for what they are paying for. I would suggest something like add some premium movies or even start adding live channels to some accounts. Another weakness hurting Netflix is the price increase they have had for the past couple of years especially starting with their standard account which started off at 7.99 and since has gone up to 13.99 as September of this year. I understand they are being completive with other streaming services but to have an 18% increase is just too much and should hold steading at one price that way people do not have to cancel their membership and continue to enjoy their great services.

References

Kind, D. (2019, July 15). How Netflix can Improve its Business Model. Retrieved December 03, 2020, from https://www.obsidianreport.com/post/how-netflix-can-improve-its-business-model

Richter, F. (2019, January 17). Infographic: A Brief History of Netflix Price Hikes. Retrieved December 09, 2020, from https://www.statista.com/chart/16684/netflix-subscription-prices-in-the-united-states/

Richter, F. (2020, January 24). Infographic: Netflix's International Expansion. Retrieved December 09, 2020, from https://www.statista.com/chart/10311/netflix-subscriptions-usa-international/