Business Strategy of Netflix Executives

This study provides information on the business strategy of Netflix executives, including a situation analysis using SWOT and Portfolio models. It discusses the challenges faced by the company and provides recommendations for short-term and long-term strategies. The study concludes with a summary of the findings.

Business strategy of Netflix
executives

1
Introduction
 The study will provide information regarding the Netflix executives by evaluating
it situation analysis using two different models
 Portfolio model and SWOT model will be used for demonstrating the situation
analysis of this company
 The study will also discuss the problems faces by this company
 Furthermore, some recommendations on short-term and long-term strategies will
be provided that must be beneficial for this firm
Notes
The primary aim of this study is to provide brief information regarding Netflix executives
by elaborating the situation analysis of this firm. In order to evaluate the situation, the
SWOT and Portfolio model has been used. Besides this, it will also demonstrate the
challenges faces by this company, and following this, some recommendations are
provided that must help the firm to survive easily in the market.
Situation analysis of Netflix Company
Situation analysis is used to understand the external and internal factors that affect the
business. In today's environment, Netflix is serious about its products, which influences
them to improve their business situation in the market. The two models that have been
used for a situation analysis of Netflix executives are the SWOT model and Portfolio
model.
SWOT model
 SWOT model is used for matching the threats and opportunities of the external
environment with the strengths and weakness of the internal environment
Notes
Situation analysis defines the position of Netflix firm in terms of both external and
internal factors. By improving the seriousness of several products, they have enhanced
their business situation level. For determining the situation analysis SWOT model and
Portfolio model are discussed.

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Continue…
Strengths Weaknesses
 Netflix firm become serious
about consumer products
 The firm has huge first-mover
benefits
 Increases 25 million
subscribers in the nation every
year
 Apparently, cancel the shows
of Marvel dramas which
affected their business
 Spend huge money on
populating their own platform
Opportunities Threats
 Predicted to increase their
business revenue from 132.9
million US dollars in 2019 to
169.3 million US dollars in
2022
 Production of comic books
increases their opportunity to
expand business
 Expenditure rate of business
has been increased
 Intense rate of competition
affected company profit
 Netflix company become stuck
in a deal with Tendo Nagenda
company
Notes
Netflix Company becomes careful about their consumer needs, which produce fast-
mover benefits to the business. For such an effort, they increase their consumer base
every year, and it helps them to predict their budgeted profit rate. However, canceling of
marvel dramas and spending a huge amount on populating the platform they face the
serious business issue. Moreover, expenditure rate increases, and they stuck with their
deal that generated huge threat among the Netflix executives.
Continue…
Portfolio models are used for handling the strategic business unit that can be perfectly
be fitted in one matrix. Thus for this Portfolio model, the BCG matrix of Netflix
executives has been chosen.

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 BCG matrix provides an idea regarding the external and internal environment of
Netflix in relation to four factors, such as the star, cash cow, question mark and
dog
 Star segment consists of the growth rate of sales and market share of Netflix
 Being an international streaming firm they occupied high industry share that
enables the firm to fall in a star group
Notes
By using the BCG matrix of the Portfolio model, the situation analysis of this Netflix firm
has been done. From the BCG matrix, it came to know that the star segment of this
Netflix firm is the market share and sales growth rate. This has occurred as the firm
uses traditional cable networks to supply their services to the consumers.
Continue…
 The cash cow segment of this company constitute the low industry grow and the
high rate of subscription approach
 The industry growth rate declined due to this high subscription rate
 None of the segments of Netflix falls under the category of question marks and
dogs
Notes
The cash cow segment is considered as the low industry grows of this Netflix firm that
has been caused due to the high subscription rate. However, no such element of Netflix
has been present that has fallen on the category of question marks and dogs because
both are included when the business faces low market share and sales growth.
Key problems faced by the company
From the article, it is seen that various problem has been facing by the company and
they are as follows:
 Increases the expenditure rate for populating their platform
 The firm becomes stuck with the deal of Tendo Nagenda firm as it affected their
business growth

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 Reduces the company profit because of canceling the five dramas of Marvel
Notes
After reviewing the article, it is seen that Netflix executives face challenges in the
market and one of the key challenge in that they spend more money on populating their
platform. This procedure has affected the business profit and revenue in the chosen
country market. In addition, it is also analyzed that the deal with Tendo Nagenda create
an issue for them. They stuck in their business procedure which not allow them to grow
their business further. Besides this, by canceling the drama, they have also faced
challenges in increasing their business profit.
Recommendations
Short-term and long-term strategies that should be used by this firm are given below:
 It is recommended that the firm should appoint a skilled and experienced
workforce that can easily manage the expenditure rate
 Another recommendation is that the firm should permanently break the deal
with Tendo Nagenda so that they can increase their business growth
Notes
Based on the short-term strategy it is recommended that the management should hire a
skilled employee who can control the expenditure rate. With the help of this strategy, the
firm can manage the business operations properly which overall improve their company
growth in the market. Along with this, based on the long-term strategy, it is
recommended that the company should break the deal, which affected their business
procedure. For breaking this they should take legal help and hence overcome their
challenges in the coming days.
Conclusion
 The study concludes that for the situation analysis both SWOT model and
Portfolio model of BCG matrix are used
 Both these model provide a brief view of the industry situation

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 Increasing expenditure rate and reducing profit are the key challenges faces by
the firm and thus it some recommendations are provided that help the firm to
resolve it
Notes
From the SWOT and Portfolio model, an idea regarding the current situation of Netflix
has been generated. In addition, after reviewing the article, it is seen tag enhancing
expenditure, and decreasing income are the main challenges faces by the firm. Thus for
reducing some recommendations are provided that can be advantageous for the
business.

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