Introducing Netflix Sports: A SWOT Analysis and Target Market
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Added on 2021-08-11
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This article discusses the introduction of Netflix Sports, a new service that offers sports streaming to its subscribers. It includes a SWOT analysis of the product, target market, and product pricing.
Introducing Netflix Sports: A SWOT Analysis and Target Market
Added on 2021-08-11
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1 Product Overview According to various global reports, sports viewership around the globe has increasingly grown from the last decade, mainly attributable to the increased technological advancement in the sports sector. A number of companies offer these sporting activities through both online streaming and offline (use of set boxes) viewership. Besides, the firms within this sector have undoubtedly reaped huge amounts of profits due to the increased number of subscribers, and the increased sporting events around the world. Therefore, to tap into the vibrant industry, I seek to modify Netflix services to ensure that the company offers sporting services. Just like the movie services, the company will be able to offer sports' streaming to its millions of subscribers across the globe. Hence, by offering sports streaming, its subscribers would not only have a range of movies to watch but also stream various sporting activities in real-time. Therefore, by providing these services, Netflix would modify its operations to adopt sports services. Netflix company is considered to be the world's successful streaming company that distributes TV shows and movies of different languages and genres to over 140 million subscribers to close to 200 countries around the globe. The company mainly creates its movie contents. Besides, it partners with other movie producers to gain rights to distribute their programs and contents. The company primarily operates in three segments, that is the domestic streaming (United States), international streaming, and the domestic DVD (Netflix. (n.d.). Even though the company has been in operation for quite some time and has increasingly increased its number of subscribers, a more substantial part of its customer base still feels the company should offer more services. One of these services is introducing live sports streaming. Since the company only provides movie streaming, some of its subscribers are forced to subscribe to other streaming channels to enable them to keep up with the numerous sporting activities across the
INTRODUCING NETFLIX SPORTS2 globe. This has been a burden to both movie and sports lovers who have to dig deep into their pockets to get full entertainment. Hence, Netflix Sports would help reduce the burden offering the two streaming services under one site and at an affordable rate compared to separate subscriptions. I believe the introduction of Netflix Sports into the market, both the domestic and international market, would be quite a relief to most of its customer base. SWOT Analysis of the Product Conducting a SWOT analysis would effectively help in identifying the Strengths and weaknesses of the product and the key strengths that would enable the company to overcome its shortcomings. Besides, the analysis would help in identifying the opportunities in the market that the company could take advantage of to help mitigate the possible threats in the market (Phadermrod, Crowder & Wills, 2019). Strengths Netflix is a highly valued brand around the globe. Capacity to partner with giant sports content providers. Large platform for content consumers. Netflix Inc. strong customer experience and relations. Weaknesses Imitable business brand and content distribution. Dependency on other sports producers. Dependency on local internet service providers. Opportunities Product diversity and growth. Increased internationalization. Increased technological advancement, such as the development of 5G networks. A large number of potential new subscribers. Threats Rivalry from existing sports streaming companies. Increased rates of Cybercrime. Threat from cheaper competitor offerings. Strengths: Netflix Sport's primary strength is the highly valued Netflix brand in the global market. Hence, an introduction of the new product would undoubtedly receive an
INTRODUCING NETFLIX SPORTS3 overwhelming number of new subscribers. Besides, the high-value brand would enable Netflix Sports services to favorably compete with the giant sports companies such as Sky Sports, BT Sports, Bein Sports, and NBC Sports (Reisinger, 2020). The company's increased customer base would enable the new service to quickly penetrate the market and attract a substantial number of viewership, both from existing and new subscribers. Moreover, Netflix Inc.'s financial strength enables the company to strike deals with corporate sports producers, thus enabling the company to gain streaming rights. With the strong relationship between Netflix Inc. and its customers, leading to improved customer experience, the new service is likely to receive overwhelming support. Weaknesses: Netflix has a weak business model that can easily be imitated by other content producers and service providers. Therefore, Netflix Sports services would be easily imitated by other firms, thus leading to increased competition due to the threat of new entrants. Besides, since the sports services would primarily depend on different service producers, the Netflix Sports services would likely be affected by the strategies of the content producers or disruption of their businesses. Additionally, the subscribers to the Netflix Sports streaming services largely depend on the internet service providers within their locality. Hence, the ineffectiveness of these internet providers would also affect the company's sports streaming services. Opportunities: there exist various opportunities in the sports streaming that the company can use to its advantage to help increase the popularity of Netflix Sports. Product diversification strategies of the company would effectively help in marketing the new product to its potential customers. Besides, increased technological advancements would ensure that sports streaming services are efficient enough to provide improved customer experience. Since Netflix has
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