Situational Analysis of Netflix Company

Business Strategy
Netflix

Situational Analysis of Netflix
CompanyIFE Matrix
IFE Matrix
Strengths
Weight Rating Weighted
score
1 Revenue increased by 30.24% from
2017 to 2018
0.06 4 0.29
2 Over 90% of the surveyed subscribers
would recommend Netflix services to
others
0.06 4 0.24
3 Library of choices grew by about 30% in
2018
0.04 4 0.16
4 At the moment Netflix has over 100,000
DVDs in circulation
0.04 4 0.16
5 Netflix has expanded in other markets
such as Latin America, Canada, and
Mexico
0.07 4 0.28
6 As of fall of 2018, Netflix was the
leading live streaming movie company
0.07 3 0.21
7 Current customer satisfaction is at 85% 0.04 4 0.16
8 Unrestricted access to internet movies
and mail in DVDs for as low as $7.99
0.08 4 0.32
9 Net revenue increased from $11.693B in
2017 to $15.794B in 2018
0.05 4 0.20
10 Apple Co. uses Netflix to stream films to
iPad, iPhone, and its Apple TV
0.04 3 0.12

Weaknesses
Weight Rating Weighted
score
1 Depending on the US mail system for
delivering of DVDs in the US markets
0.05 1 0.6
2 Solely depends on Amazon for most of
its cloud computing services
0.04 1 0.04
3 Just 2 of the senior officers are women 0.02 1 0.02
4 Netflix has no specific publicly
available mission or vision statement
0.02 1 0.02
5 Netflix deal with Sony and Disney
expired in 2011
0.04 1 0.04
6 In 2010 it did appear in the Top Ten list
of the video content dealers
0.06 1 0.06
7 It charges $79 for unrestricted
streaming without DVDs
0.08 1 0.08
8 Unrestricted access to internet movies
and mail in DVDs for as low as $7.99
0.03 2 0.06
9 Netflix gathers data from its
consumers and some companies have
received criticisms for this practice.
0.03 1 0.03
10 It is the object of patent breach
regarding client-server
communications
Totals
0.08
1.00
1 0.08
2.88

EFE matrix
Opportunities
Weight Rating Weighted
score
1 147M of people in the US watch online
videos
0.08 3 0.24
2 Distribution of digital media is growing
at about 30% yearly rate.
0.06 3 0.18
3 Global markets accounts for about 50%
of expenditure on US filmed
entertainment
0.05 2 0.10
4 US TV market accounts for less than
15% of the global TV households
0.05 2 0.10
5 China’s box-office yearly growth rate
contributes to grow over 10% per
annum
0.07 4 0.28
6 Competitors such as Disney do not
have stable business models
0.07 3 0.21
7 Consumers spend about $20B on home
video purchases on yearly basis
0.05 3 0.15
8 More people are now fully acquainted
with English
0.03 4 0.32
9 Weakening value of USD is making it
more attractive in the global market
0.03 2 0.06
10 High price of outing at the movie
theater
0.04 4 0.16