Business Analysis of Netflix: Strategies and Goals

This report provides a comprehensive business analysis of Netflix, a leading entertainment company and OTT platform. It begins with a brief overview of Netflix, detailing its services and global presence. A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is conducted to evaluate the company's internal and external factors, including its brand strength, customer base, cost of content, and competition from other streaming services. The report then identifies Netflix's strategic goals, aligning them with its competitive strategy in the digital content industry. Finally, it concludes with recommendations for addressing weaknesses and threats, such as reducing subscription costs and ensuring copyright protection. The report utilizes information from academic journals and the Netflix website to support its findings.

Running head: MANAGEMENT
Business Analysis
Name of the student
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Table of Contents
Introduction................................................................................................................................3
Brief overview of Netflix...........................................................................................................3
SWOT Analysis of Netflix.........................................................................................................4
Strategic Goals of Netflix...........................................................................................................5
Conclusion and Recommendations............................................................................................6
References and Bibliography.....................................................................................................7

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Introduction
The business strategies of the modern day world has undergone a huge change
because of the change in the business structures and the increasing interest of the business
houses to conduct different kinds of research and innovation activities in order to gain a large
market share. A marketing plan can thus be said to be a strategic roadmap that are undertaken
by the management of the business organizations in order to plan, organize,
execute/implement and keep an eye on the marketing activities and strategy over a certain
period of time (Dhote & Chaitanya, 2019). Marketing plans of an organization can include a
single or a multiple number of marketing based business strategies for the different kinds of
the teams involved in the marketing process. However, a common factor is that all the
different teams work in a different manner to achieve the same common goal. The following
report is based on the identification of the marketing plan and marketing strategies of one of
the World’s largest entertainment company, Netflix.
Brief overview of Netflix
Netflix is an American OTT platform (Over the Top) that provides media services
through videos and series through the means of internet (netflix.com, 2020). The company
which is headquartered in Las Gatos, California provides entertainment to the customers
through the Video on Demand platform (netflix.com, 2020). The company has a worldwide
presence with some few exceptions. The company has been able to gain the largest market in
OTT platform because of its huge investment in the entertainment media through which the
company was able to produce and launch more than 126 different original series or films in
the year 2016 (netflix.com, 2020). With 169 million paid users of the company and an annual
revenue of more than US$20 billion, the company is surely heading towards a successful as
well as sustainable future (netflix.com, 2020).

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SWOT Analysis of Netflix
STRENGTH OPPORTUNITIES
 Brand Name of the company is surely
a strength for the organization
 The large customer base of the
organization is another strength
 Original and innovative contents
 Reaching out to the Chinese market
 Increase of viewers for original
business content
WEAKNESSES THREATS
 Cost of the contents of the Netflix is a
weaknesses
 Absence of copyright
 Increase in business competition
 Problem with objectionable content
Strengths
 Brand Name of the company is surely a strength for the organization as because it has
been able to retain its status as the sole brand name for online streaming content. The
share price of the shares of the organization has increased to $167.1 in 2019 from a
mere $2.5 in 2005.
 The large customer base of the organization is another strength of the business as the
company has a customer base of 169 million people.
 Original and innovative contents of the organization has also helped in the increase of
customer base. The streaming of original shows and web series has become a large
strength for the organization.

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Weaknesses
 Cost of the contents of the Netflix is a weaknesses for the organization. The annual
cost of membership for watching videos in the entertainment platform is quite high
which a weakness for the company is surely.
 Absence of copyright for the original series of the company does not help the
organization as such a problem can directly affect the retention of the customers.
Opportunities
 Reaching out to the Chinese market through new subsidiaries or entering into joint
ventures can act a s a real help for Netflix (Jenner, 2016). The huge market of China
has been left unexplored by the company which has all the potential benefits to gain
strong recognition.
 Increase of viewers for original business content can be another major success area.
There has a been a large scale rise in the viewers of original contents that has helped
the management to ensure business success
Threats
 Increase in business competition with the rise of Amazon Prime has created new
competition.
 Objectionable content in some of the shows has been a problem in some nations with
conservative society.
Strategic Goals of Netflix
The current business model of Netflix has a clear alignment with the generic
competitive strategy for the business organizations. The company has aims to be the leading

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competitor in the ongoing digital content industry (netflix.com, 2020). The company aims to
apply the best and the most competitive business growth strategies that can help the
management of the organization to ensure an intensive growth (Daidj & Egert, 2018). The
value chain of the market is based on the platform of the business, cutting of the middleman
model and finally the implementation of a revenue based business model to provide unlimited
access for the customers to the videos and contents.
Conclusion and Recommendations
The report has presented a brief yet clear analysis of the business strategies and goals
of Netflix. However, the weakness and threats of the business that can cause a negative
growth to the organization can be tackled by,
a. Reduction in the annual subscription amount of Netflix
b. Monitoring of the contents of the shows before releasing them in countries having a
conservative mentality
c. Ensuring the presence of copyright

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References and Bibliography
Daidj, N., & Egert, C. (2018). Towards new coopetition-based business models? The case of
Netflix on the French market. Journal of Research in Marketing and Entrepreneurship.
Dhote, T., & Chaitanya, P. K. (2019). Leveraging Curiosity Branding and Content to
Remodel Viewing Habits: A Case of Netflix in India. In Breaking Down Language
and Cultural Barriers Through Contemporary Global Marketing Strategies (pp. 232-
256). IGI Global.
Jenner, M. (2016). Is this TVIV? On Netflix, TVIII and binge-watching. New media &
society, 18(2), 257-273.
Jenner, M. (2018). Netflix Marketing: The Binge and Diversity. In Netflix and the Re-
invention of Television (pp. 161-182). Palgrave Macmillan, Cham.
Netflix United Kingdom – Watch TV Programmes Online, Watch Films Online. (2020).
Retrieved 6 April 2020, from http://www.netflix.com/
Wayne, M. L. (2018). Netflix, Amazon, and branded television content in subscription video
on-demand portals. Media, Culture & Society, 40(5), 725-741.