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

Running head: Netflix
Netflix

Netflix
Table of Contents
An introduction and Background of the study.............................................................................................1
Netflix’s External Environment...................................................................................................................1
Netflix – A Five Forces Analysis................................................................................................................2
Netflix – Business Level Analysis...............................................................................................................3
Netflix Strategic Intent................................................................................................................................4
Conclusion to the study...............................................................................................................................4
References...................................................................................................................................................5
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Netflix
An introduction and Background of the study
In this paper, the discussion will be made on the Netflix Company. It has been examined that
Netflix is known as the American media service provider and headquarter is in Los Gotas,
California. The company was founded in 1997 by Reed Hastings and Marc Randolph in Scotts
Valley, California (Fast Company, 2018). In the first phase, the external environment will be
discussed and the next phase will elaborate the five force analysis of the company. Business level
analysis will also be described in reference to Netflix Company. The overall study will also
elaborate the business level aspects of the company. The last phase will focus on the strategic
intent that will help in considering the different strategies. At last there will be a concluding part
that will provide overall summary of the factors that are discussed in the paper.
Netflix’s External Environment
The external environment of the company can be described by focusing on the Pestle analysis
framework that helps to focus on the external factors of the company. There are different factors
that can highlight the different aspects like political factor, economic, social and technological
factor.
Political factors
In the US markets, the audience has moved from traditional TV towards the on demand
streaming services such as Netflix. The increase in the internet usage, the US telecom giants has
met the federal communications commission to implement the usage of regulations. There is
involvement of congress and due to this the internet prices has been enhanced that has threaten
the business model of Netflix internet streaming service. The EU ruling will also focus on the
streaming services like organization has to consider the rule that 30% of the content should be
European (Hackernoon, 2018).
Socio cultural factors
In the market of UK, there are younger viewers who are watching more online streaming
services for entertainment. There are also large customer base who are shifting to watch the
videos on their smartphones. This states that the demand for the online streaming services has
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