Business Development: Netflix SWOT Analysis Report

This report presents a weighted SWOT analysis of Netflix, a leading American entertainment company. The analysis examines Netflix's internal strengths, such as its strong dealer community, brand portfolio, and high customer satisfaction, alongside its weaknesses, including financial planning issues, low profitability ratios, and poor customer service. The report also identifies external opportunities, such as investments in online platforms, adoption of new technology standards, and low inflation rates, as well as potential threats, including the absence of a regular supply of innovative products and the growing strengths of local distributors. The conclusion emphasizes the importance of carefully reviewing the weighted SWOT analysis to maintain Netflix's dominant market position, highlighting its interactive processes that coordinate well among various departments. The report also includes references to support the analysis.

Running Head: Brand Analysis
Brand Analysis

Brand Analysis 1
Table of Contents
Introduction......................................................................................................................................2
Strength of Netflix...........................................................................................................................2
Weighted Strength...........................................................................................................................3
Weakness of Netflix........................................................................................................................3
Weighted Weakness.........................................................................................................................4
Opportunities of Netflix...................................................................................................................4
Weighted Opportunities...................................................................................................................5
Threats of Netflix.............................................................................................................................5
Weighted Threats.............................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Brand Analysis 2
Introduction
In this present paper, we will discuss weighted SWOT analysis of Netflix Company. Netflix is an
entertainment company of America which was founded in 1997 in California. Netflix is the
world’s leading internet television. The members can watch as much as they want. Even the
members can resume, play and watch the movie whenever they want. These all are available
without any commercials. Weighted SWOT analysis consists of the collection of information
that is related to the external and internal factors that have the adverse effect on the business.
However, weighted SWOT analysis is a framework that provides the advantage to the company
to fight with their competitors. It also provides the factors which are harmful if used against the
company by their competitors. It also discusses unfavorable situations which have a negative
impact on the business (Bull et al., 2015).It also tells about the favorable situations which help an
organization to bring core competency.
Strength of Netflix
 It provides the strong dealer community as it has built or set a strong culture among
dealers and distributors. The company knows very well how to extract the maximum
benefits from the product ( Ervural et al., 2015).
 The company is successful in maintaining the track records of the product.
 The company is using better marketing strategies for its product.
 The company is generating the better returns on capital expenditure for building new
revenue system.
 The Netflix is making use of brand portfolio which helps the organization to expand into
new product categories.

Brand Analysis 3
 The company provides the higher level of satisfaction to its customers.
 Netflix also has highly skilled workforce
Weighted Strength
The weighted strengths of Netflix are as follows:
Strength Importance Rating Score
Stronger Dealer
Community
0.01 1 0.01
Maintaining track
record
0.15 3 0.45
Better Results 0.05 1 0.05
Brand Portfolio 0.02 2 0.04
Higher Level of
Customer Satisfaction
0.08 2 0.16
High skilled workforce 0.03 1 0.03
Weakness of Netflix
Weakness is that area where Netflix can improve in order to improve the performance of the
company. Netflix needs to be improved so as to obtain a competitive advantage. If a company
works on its weakness then they are able to attain the strategic positioning. The weakness of
Netflix is as follows:
 Financial planning is not done properly and efficiently.
 Even the profitability ratio is below the industry average.

Brand Analysis 4
 Netflix is not good in estimating demand forecasting.
 The company is not able to handle the challenges more efficiently.
 The company also spends very little in research and development.
 The company provides Poor customer services.
 There is also high labor turnover
 The net contribution rate is also very low.
Weighted Weakness
The weighted weakness of Netflix is as follows:
Weakness Importance Rating Score
Financial Planning 0.08 3 0.27
Profitability Ratio 0.03 3 0.09
Estimate Demand
Forecasting
0.01 2 0.02
Handle challenges 0.02 2 0.04
Little on R&D 0.12 1 0.12
Net Contribution Rate 0.05 1 0.05
Poor Customer
Services
0.03 2 0.06
High Labor turnover 0.04 3 0.12

Brand Analysis 5
Opportunities of Netflix
 From the past one year the company is investing huge amount on the online platform.
This will create a better opportunity for the company to know its customers better and
provide them according to their needs.
 As a company is adopting new technology standards which help the company to enter
into a new emerging market.
 Also, there is low inflation rate which will bring more stability in the market.
 There is the low cost of transportation which will boost the profitability of the company.
 New trends provide the great opportunity for an organization to build new revenue
streams.
Weighted Opportunities
The weighted opportunities of Netflix are as follows:

Brand Analysis 6
Threats of Netflix
The threats which can impact the company’s growth are as follow:
 No regular supply of innovative product.
 Rising raw material cost can pose the threat of security growth.
 Growing strengths of local distributors also a threat to company’s high margin profit.
 No regular supply of innovative product.
Weighted Threats
The weighted Threats of the company are as follows:
Threat Importance Rating Score
No Regular Supply of
Innovative Product
0.08 1 0.08
Growing strengths of
Local Distributors
0.06 2 0.12
Raising Raw material 0.05 3 0.15
Opportunities Importance Rating score
Online Platform 0.08 3 0.24
New Technology
Standards
0.05 2 0.10
Low inflation Rate 0.03 1 0.03
Low Cost of
Transportation
0.02 1 0.02
New Trend 0.01 2 0.02

Brand Analysis 7
cost
Growing Strength of
local Distributors
0.04 2 0.08
Conclusion
From the above analysis, we can conclude that Netflix is one of the leading companies. The
company can maintain its dominant position by carefully reviewing the Weighted SWOT
analysis of the company (Anton et al., 2015). It is one of the interactive processes that coordinate
really well among various departments.