SWOT Analysis and Service Marketing Challenges of Netflix

This report analyzes the SWOT analysis and service marketing challenges of Netflix. It identifies the strengths, weaknesses, opportunities, and threats faced by the company. It also provides recommendations to overcome the challenges and maintain a competitive advantage. The report discusses the key service marketing challenges faced by Netflix, such as lack of good customer service executives, lack of proper green initiatives, and increasing debt. It also provides recommendations to overcome these challenges by using marketing principles such as STP analysis, listening to customers, and providing evidence. The report is relevant for students studying Principles of Marketing and related courses.

Principles of
Marketing Individual
written Report

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting SWOT analysis of Netflix..........................................................................................3
Analysing organization’s key service marketing challenges.......................................................4
Analysing the threats relating to theoretical principles of services marketing............................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Proper marketing techniques used by the company helps in earning higher amount of
revenues in the most efficient manner. Furthermore, the present report is based on Netflix that is
well-known American subscription streaming service and production company that is making
millions of people satisfied through providing the best content. Also, the present report will
analyse strengths and weakness faced by the organization and will also help in identifying the
key service marketing challenges that would be faced by the firm in the coming years. Lastly, the
study will present theoretical principles of services marketing and will provide set of
recommendation that would help the company to overcome the future challenges in most
efficient manner.
MAIN BODY
Presenting SWOT analysis of Netflix
Though the company had been working very hard over the past few years and had earned
lot of revenues through providing the best customer satisfaction there are certain things that are
still lacking and could be easily identified through presenting the SWOT analysis in detail:
STRENGTHS
The Best growth: In certain reports it has
been identified that in last 10 years the
company had become the most influential
brand for the online streaming that has made
satisfied not only the US people but lot of
people around the world (Shi and Zhou, 2021).
Brand reputation: The company has brand
value in the market that has helped in
generating lot of revenues all around the world
(Netflix SWOT analysis, 2022). Furthermore,
the brand value is established in way that has
created lot of awareness among the people.
WEAKNESS
Rigid pricing: Customers are little unsatisfied
with the company because it follows the rigid
pricing policy where only three pricing options
are been provided such as standard, basic and
premium (Meng and et.al., 2022). Thus, lack of
different options had not allowed new
subscription within the company.
Increasing debt: Netflix is been supplying the
diversified content across various regions that
required large amount of money (Steck and
et.al., 2021). Furthermore, in certain reports it
was stated that in April 2020 the company had
the overall debt of 14.17 billion that is major

weakness for the future growth and running of
the business.
Growing operational cost: To survive in the
era where there are lot of changing market
requirements it is very essential to remain
competitive (Hopkins and et.al., 2021).
However, it has been seen that company had
not been able to gain enough of the subscribers'
that would not help the business to earn enough
amount of revenues in the future.
OPPORTUNITIES
Expand global customer : With having the
good amount of subscribers the company has
the opportunity of expanding its services and
subscribers (Lotz, 2021). Further, Netflix has
the opportunity to expand its operations into
various other regions so that more global
customers segments would help in generating
the best revenues.
Introduce cheaper subscription: Netflix has
another opportunity of introducing the cheaper
subscription in target markets so that more
customers could be added within the brand.
Also, through reducing the price more people
could be added on this online platform that is
very essential for ensuring continuous growth
of the business in long run (Gubíniová and
et.al., 2021).
Alliances: Netflix has opportunities of
becoming partner with other company that
THREATS
Government regulation: As the company is
operating on large scale there are certain online
streaming restrictions that would not allow the
company to telecast certain content on its
platforms that might reduce the overall
customer segment for the firm in the future
(Pilipets, 2019).
Piracy: Digital media is one that is at the peak
that has the option of downloading the data and
other related content which might not allow
enough subscribers to the company (Amat and
et.al., 2018). Also, the company revenues are
based on subscription and if such situation
exists than it would negatively impact future
working of the firm.
Account hacking: Also, Netflix is run through
the online platform that has the higher chances
of account being hacked (Kostovska, Raats and
Donders, 2020). Also, if such type of situation

would help in providing the assistance and
more financial support in times of needs
exists than it would simply means that there is
loss of revenues for the firm.
Analysing organization’s key service marketing challenges
Though the Netflix is very much known and popular but the company needs to assure
that right kind of marketing strategies are ben used within the business. Also, if such kind of
strategies are not been used than it would create problems for the business as their lot of online
service platforms that are capable enough to provide the quality data to large number of
customers. Thus, below are some challenges that might affect the efficiency of the business and
its create marketing challenges in future
Lack of good customer service executives:
Customers are the prime reason due to which the company is able to earn revenues and
build the best brand image in the market. Also, it has been reportedly seen that company lacks
the best customer executives that would help the business to resolve certain queries of the
customers located in different region. Moreover, marketing of the company could be planned in
proper way only when company is having best of candidates that are experienced enough to
handle the customer and its queries on large scale (Quyen, 2022). Furthermore, it is very
essential that there is proper communication process that is been followed so that customer does
not become angry and frustrated. Thus, this is one of the challenge the company would be facing
in coming three years and thus it would require immediate actions so that bets marketing in the
market could be established (Netflix loses almost a million subscribers, 2022). Also, this
weakness could become threat to the firm as it in certain reports it was identified that the
company has adopted rigid hiring policy where only those candidates are been hired that are well
experienced over the years. However, such condition does not allow the fresh talents with no
prior experience that had the required skills to showcase these competencies within the firm.
Hence, such kind of problem will only decrease the overall efficiency of the firm in long run.
Lack of proper green initiatives
In the current era where most of the customers are only dependable on using only those
products and services that are sustainable, it is very essential that company also introduce only
those services that green in very sense. Furthermore, it is another major challenge for Netflix as

the company has failed to use sustainable methods that would help the business on the large scale
(Andronie and et.al., 2019). Also, it is challenge for the firm as if environmental sustainability is
not been promoted than it would create negative impact on the brand image of the firm.
Furthermore, it is another main problem as various big competitors like Amazon, google,
Facebook etc. are using the best techniques that would help the business to remain committed in
long run. Also, lack of green initiatives would not allow the firm to remain competitive and
efficient in long run. Moreover, it is effective marketing tool for any company as more
subscribers would want to be part of those brand that are concerned about both revenues and
nature at the same time.
Increasing debt.
As the company is responsible to earn enough profits to survive in changing markets, one
of the major problem of Netflix is facing growing number of debts due to which the company
would not be able to plan better marketing strategies in the future (Ismoilova, Mirkhadja and
Nabieva, 2021). Also, this is because various newer platforms like Disney hot-star, amazon
prime etc. have come up in the market that are offering the best subscriptions rates to large
number of customers located in different regions.
Analysing the threats relating to theoretical principles of services marketing
There are several service marketing principles such as stay current, listening to the
customers, providing evidence etc. might be used by the business so that several threats like
increasing debts, poor customer care executives, lack of green initiatives might be overcome in
the efficient manner.
Further, below is list of recommendations that would help Netflix to plan better service
marketing strategies in the future.
 It is been suggested to the firm that to ensure effective marketing it should use STP
analysis so that better segmentation, targeting and positioning of the firm could be made.
Also, through conduct of such analysis the company would be able to plan things in more
the best manner and would follow the principles of staying current in ever-changing
global markets (Woodham, 2018)
 Furthermore, it is been recommended to the firm that it should focus on listening to the
customers more often so that customers remain satisfied with the current sales executives
that would help in solving various problems being faced.

CONCLUSION
From the above report it had been summarized that Netflix is the largest company that
might be able to maintain competitive advantage through applying the SWOT analysis. Also, the
report had identified the key service marketing challenges and had also provided
recommendations that would help in the further growth of the business in the future.

REFERENCES
Books and Journals
Andronie, M. and et.al., 2019. Integrating the principles of green marketing by using big data:
Good practices. Amfiteatru Economic Journal. 21(50). pp.258-269.
Gubíniová, K. and et.al., 2021. Marketing communication and its role in the process of creating
rational awareness of generation Z representatives. In Developments in Information &
Knowledge Management for Business Applications (pp. 203-221). Springer, Cham.
Hopkins, C. D. and et.al., 2021. Changing perceptions of marketing ethics and social
responsibility in principles of marketing. Journal of Marketing Education. 43(2). pp.244-259.
Ismoilova, G., Mirkhadja, D. and Nabieva, F., 2021, November. The Role of Processing
Information in Digital Marketing. In 2021 International Conference on Information Science
and Communications Technologies (ICISCT) (pp. 1-4). IEEE.
Quyen, N. T. A., 2022. The impact of marketing on activities of Vietnam arts and cultural
organizations. Linguistics and Culture Review. 6(1). pp.99-109.
Woodham, O. P., 2018. Testing the effectiveness of a marketing simulation to improve course
performance. Marketing Education Review. 28(3). pp.203-216.
Shi, Y. and Zhou, J., 2021, October. Analysis of Foreign Video Streaming Service Entering
Chinese Streaming Media Market: A Case Study of Netflix. In 2021 International
Conference on Public Relations and Social Sciences (ICPRSS 2021) (pp. 337-343). Atlantis
Press.
Meng, H. and et.al., 2022, July. An Assessment about the Business and Profitability Analysis for
Netflix. In 2022 2nd International Conference on Enterprise Management and Economic
Development (ICEMED 2022) (pp. 467-477). Atlantis Press.
Steck, H. and et.al., 2021. Deep learning for recommender systems: A Netflix case study. AI
Magazine. 42(3). pp.7-18.
Lotz, A. D., 2021. In between the global and the local: Mapping the geographies of Netflix as a
multinational service. International Journal of Cultural Studies, 24(2), pp.195-215.
Amat, F. and et.al., 2018, September. Artwork personalization at Netflix. In Proceedings of the
12th ACM conference on recommender systems (pp. 487-488).
Pilipets, E., 2019. From Netflix streaming to Netflix and chill: The (dis) connected body of serial
binge-viewer. Social Media+ Society. 5(4). p.2056305119883426.
Kostovska, I., Raats, T. and Donders, K., 2020. The rise of the ‘Netflix tax’and what it means for
sustaining European audiovisual markets. Innovation: The European Journal of Social
Science Research. 33(4). pp.423-441.
Online
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analysis-of-netflix-2019-netflix-swot-analysis/>
Netflix loses almost a million subscribers. 2022. [Online]. Available through:
<https://www.bbc.com/news/business-62226912>.