In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2.

Weaknesses

Among the weaknesses of Netflix is lack of rights related to the original content. As stated earlier, Netflix distributes the contents from other production houses. Since it lacks original rights to production from other houses, such shows on expiry of rights can be taken to its competitors thus taking its subscribers with it. This thus strengthens the competitor at the expense of Netflix. Secondly, Netflix has been cited as lagging behind when it comes to environmental initiative. Bearing in mind about the call for attention to environment, there is a fair chance its losing ground owing to environment concerns. On the other hand, its competitors have paid attention with the likes of Amazon using renewable energy. This thus can affect Netflix weakening its customer base. Thirdly, even though Netflix is establishing itself with availability of its in-house production, concerns regarding cost of its original content seem to be affecting it. Such costs may be eating up its profit share that could plough-back to other ventures (Mazzolini, 2016). Fourthly, Netflix was known and loved for its pocket friendly prices. However, the relatively marginal increase in price does not seem to be auguring well with its consumers. To some extent, there was even a stumble in its stock price. Consumers seem to be worried if it’s heading towards the rise in price patterns.

Tangible and intangible resources, capabilities and core competencies

Netflix owns both tangible and intangible resources. Its tangible resources/assets including IT related assets, its furniture and fixtures, building, leasehold improvements, DVD operations equipment and corporate aircraft. In terms of intangible resources, Netflix intangible resources include intellectual property arising from rights to distribute content and its original content. There is also goodwill accumulating owing to its continued operation (Netflix Inc., 2018).

Netflix core competencies and capabilities can be viewed through the lens of its tangible and intangible resources. Technology has been on the fore front in spearheading its operations. Netflix has banked on Amazon Web Services cloud service for provision of its services. It has stored terabytes of data in the cloud enabling its provision on demand to its client. As a result, effective provision of its data has been made possible ensuring that the company is still the leader in providing the streaming service. Secondly, it has worked on its analytics to collect enough data regarding its clients and as a result, be able to provide personalized content to its clients. With personalized mechanism, the company is able to offer recommendation to its client’s thus suiting their preferences. It has in additionally worked with Facebook and gathered information on preferences thus refining its recommendations (Dans, 2018). This aspect has thus made it possible to provide a good customer experience.

Segments of General environment that influence corporation

The two segments of general environment that influence Netflix are technology and legal segment. Technology is vital part of Netflix. It dependent on technology means it has to keep improving technology in order to continue being on the market frontlines (Dans, 2018). For instance, increased advancement in compression technique will work to assist in quality of streaming with less data being used. The company thus has to keep improving on the compression algorithm to achieve that. Besides that, there is need to focus on convenient payment as well as delivery process of the content. This again relies on aspects of technology for effective service. The next segment is the legal segment. Netflix deals with intellectual property as its products. As such, there is concern for piracy that may affect its distribution. If the content it distributes happens to be pirated, it functions as detriment to the company. There is also the aspect of geo-blocks where its contents it not aired in some regions. Case in point is in North Korea owing to U.S. government restrictions. Such aspect thus denies it market to regions that might substantially benefit from its content. Geo-blocks thus influence Netflix availability.

Forces of Competition

The two forces of competition that are significant to Netflix are level of rivalry and level of substitution. The threat of rivalry happens to be high for Netflix owing to the possibility of being substituted to competitors such as iFlix, Hulu, Amazon etc. Moreover, pay TV stations provide similar content in its programs (Mazzolini, 2016). Netflix has handled this by ensuring that it has partnered with local companies to promote its content. For instance, in Ireland, Vodafone TVs remote have a Netflix button. Such aspect has made it possible for Netflix to reach more market thus increasing its market share and edging out competition (Slattery, 2016). It has in addition worked towards having regionally produced content to enhance marketability in a given region. For example, it has worked to ensure Bollywood related content have increased in its library upon entering the market (Mazzolini, 2016). This has enhanced its competitiveness against its rivals. As far as substitution is concerned, it has worked to enhance their customer experience in order to eliminate possible substitution. For example, its subscriptions are ad free in comparison to the likes of Hulu which has a basic package with ads. Such a move to have ad free subscriptions eliminates annoyance which may induce clients to substitute it. Moreover, it has worked to enhance personalization of its content to suit customer preferences. As a result, this creates the satisfaction of the customers eliminating any likelihood of substitution.

Competition in Future

In the near future, competition from the rivals can be addressed by ensuring that it continues to build on product differentiation. That will work to ensure that its clients are retained and more potential clients subscribe. For example, assuming it comes up with a compression that uses less data, it works as a plus for persons who have limited data plans. Such clients will be able to access more shows thus opt for Netflix. In terms of threat of substitutes, it can go an extra mile in terms of expansion and introduce sport’s coverage (Sweney, 2018). Sports especially large sporting events and leagues can attract large number of viewers. Such a move can effectively work to promote its competitiveness and eliminate possibility of substitution. That happens as sport lovers will always be inclined to remain in Netflix so as not to lose access to sports.

Greatest external threat

The greatest external threat to Netflix is none other than illegal sharing and downloads. Netflix is all about streaming the content mainly. The availability of such content through illegal shares eliminates its relevance (Sulleyman, 2017). Moreover, availability of peer to peer sharing is another major threat. For example, a show/movie available in Netflix might be available for free on illegal download sites. With just internet, a person might decide to access the show via downloading it and watching. At the same time, it’s possible to access in peer to peer sharing sites where no one can be legally blamed. Such shares and downloads threaten the revenue share it owns. To handle the threat, Netflix should continue building on its vigilance programs on the internet. Some activities include scanning the internet to realize any existence of any of its contents in unauthorized sites. If such content is available, it should send requests to have such contents brought down.

Opportunity

It’s not in doubt how much Netflix has grown over the years. It’s leading in the video-streaming industry. To build further on that merit, it should continue to work on cellular mobile data plans which will ensure that it builds on the existing market (Scott, 2017). Through working out data plans with cellular providers, users who access on mobile devices such as smartphones and tablets will be able to access Netflix content from anywhere. That will work when they are away from Wi-Fi service. This will in turn boost their subscription thus generating more revenue.

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