Netflix: External Environment, Five Forces Analysis, and Business Level Analysis

Running head: Netflix
Netflix

Netflix
Table of Contents
Background of the study..................................................................................................................1
Netflix’s External Environment.......................................................................................................1
Social factor.................................................................................................................................1
Political factor..............................................................................................................................1
Economic factor...........................................................................................................................1
Technological factor....................................................................................................................2
Netflix – A Five Forces Analysis....................................................................................................2
Threats of new entrants................................................................................................................2
Bargaining power of suppliers.....................................................................................................2
Bargaining power of buyers.........................................................................................................2
Threats of substitute products......................................................................................................3
Rivalry among the existing firms.................................................................................................3
Netflix – Business Level Analysis...................................................................................................3
Cost leadership.............................................................................................................................3
Differentiation..............................................................................................................................3
Focused low cost..........................................................................................................................3
Netflix Strategic Intent....................................................................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................4
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Netflix
Background of the study
Netflix is one of the popular companies that provide different Netflix films and Television
programs online. It is a media service provider company that is situated in Los Gatos and was
established in 1997. In this paper, the research will be done on the Netflix Company and there
will be different factors that will be elaborated such as External environment, five force analysis
and also strategic intent. It is necessary to have in-depth analysis of these factors as it helps to
give proper understanding of the marketing environment of the company. So, the overall
discussion relates with market situation of the company and the factors that affect the Netflix
company operations.
Netflix’s External Environment
The external environment of the company emphasizes on the outside factors that influence the
overall activities of the company. The business should maintain the activities so that positive
results can be accomplished. The external factor of the company can be highlighted through
different aspects such as social, political and economic and technological factors.
Social factor
The main aim of the company is to provide the services that satisfy the needs of the customers.
According to the demand and preference of the customers the services are offered to the
customers. The Eco consumerism culture has pushed online, digital services which have helped
in satisfying the needs of the customers. In 2015, 65% of 16-24 years old, 58% of 25-34 year old,
48% of 35-44 year old have used the services of the company. The service has inherent wide
appeal that satisfies the needs of the customers (Euchner, 2016).
Political factor
The company has to comply with governmental regulations at the time of conducting the
activities of the company. There are agreements related to suppliers in which the DVD’s are
rented for 28 days in the market. It is analyzed that there are various political parties that involve
the congress and it has also impacted the business model of the company (Pfeifer, Conroy and
Pfeifer, 2017).
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