Netflix: Competitive Analysis of Streaming Service Industry

This report provides a comprehensive analysis of Netflix's competitive environment, focusing on its strengths, weaknesses, opportunities, and threats (SWOT). It explores the company's background, key aspects, and the competitive landscape it faces in the streaming market. The report examines how Netflix differentiates itself from competitors, analyzing factors such as threats of new entrants, bargaining power of suppliers and customers, and competitive rivalry. Furthermore, it discusses the impact of market dynamics, including the effects of the COVID-19 pandemic and content piracy. The report references relevant sources to support its findings and concludes with a summary of the key insights into Netflix's market position and strategies for success.

COMPETITION THAT NETFLIX
HAS NOW HOW THEY ACT
DIFFERENTLY TO NETFLIX
WITH REGARDS TO IT SYSTEMS

TABLE OF CONTENTS
 INTRODUCTION
 BACKGROUND OF THE COMPANY
 SWOT ANALYSIS
 KEY ASPECTS OF NETFLIX
 COMPETITION COMPANY HAS NOW AND HOW THEY ACT
DIFFERENTLY
 CONCLUSION
 REFERENCES

INTRODUCTION
 Competition refers to the act that helps the organization to compete in the
market.
 The current presentation is based Netflix that is an American subscription
service providing company.
 The current presentation will indicate the SWOT analysis and competition that
company faces in market.

BACKGROUND OF THE COMPANY
 Netflix is the American subscription streaming and production organization that is
launched on August 29 in year 1997.
 The company used to offer the film and the series through the distribution of deals. The
people in the market used to take subscription of Netflix in order to use that app.
 The app can be accessed via internet in television, computers, smartphones, etc. In March
31, 2022 (Wu and Zhou, 2021).
 The company as gained over 221.6million subscribers across the globe. The former name
of the company is Kibble.

SWOT ANALYSIS OF NETFLIX
STRENGTHS
 Netflix has the god brand reputation
and how has become the famous app
used by most of the people in the
market.
 The company has the global presence
that helps them to gain good profits.
 Netflix used to have modification in
their services that helps them to
survive in the market.
WEAKNESSES
 The company has the limited
Copyright which used to have effect
on revenue.
 As the original content is lacking in
some countries which used to affect
Netflix.
 The company used to depend on the
customers of North America.

CONTD..
OPPORTUNITIES
 As the company has the good brand
image, so it can have great demand on
the OTT platforms in the market
(SWOT Analysis of Netflix, 2022).
 By having the global presence it can
provide better services at affordable
rates.
 The company can have the strategic
partnership with the market that helps
them to have more profits.
THREATS
 By the happening of the pandemic there
is great impact on the company.
 Netflix is basically suffering from the
content piracy, as many people want to
watch film without paying to the
company.
 The great threat for the company is that
the people used to share there account
that used to affect profitability.

KEY ASPECTS OF NETFLIX
Creating the disruption by having the new technology.
The company has variety of options (Irfan and et.al., 2019).
It used to provide original content to the customers.
It also used to provide the Ad-Free content.

COMPETITION COMPANY HAS NOW
AND HOW THEY ACT DIFFERENTLY
FACTORS DESCRIPTION
THREATS OF NEW ENTRANTS  There is great threat faced by the company as the
new entrants can enter this market.
 As no more capital is required in order to enter in
streaming services proving company.
 In order to reduce the threat the company used to
bring new services in the market that used to attract
the customers (Netflix Porter's Five Forces
Analysis, 2022).

CONTD…
THREAT OF
SUBSTITUTES
 The substitutes the company has
is the rentals of DVD and free
services streamed by some apps.
 The company has the great
availability of the substitutes that
used to effect the profitability.
 The company must have
innovation which helps them to
compete with the substitutes
products.
BARGAINING
POWER OF
SUPPLIERS
 Netflix used to deal with the
content that is one of the expensive
commodity that is produce by few
suppliers.
 As the suppliers are few the
bargaining power of the suppliers
is very high.
 The company has to pay more in
order to have better availability of
the services that helps the to have
target customers.
 By having the higher supply from
the suppliers it used to affect the
profitability of the company.

CONTD…
BARGAINING
POWER OF
CUSTOMERS
 The media industry used to allow the
customers to have the high degree of
bargaining power.
 The customers in the market used to have
low bargaining power as there is fix
amount in order to purchase the
streaming of Netflix.
 This makes the customers to have less
attraction towards the company as the
bargaining power is very low.
 The company must provide the best
quality of services that used to attract the
customers to use this app.
COMPETITIV
E RIVALRY
 The entertainment and media
industry has the high level of
competition in the market.
 As there are many competitors in
the markets this used to affect the
profitability of the Netflix.
 In order to compete in the market
the cited company has to do
innovation in the market that
helps them to attract the new
customers.

CONCLUSION
 From the above presentation it is concluded about the competition that is face by the
Netflix in the market.
 This presentation has also discussed SWOT analysis of the company that helps them to
have new opportunities in the market.
 This helps the company to know about the main competitors in the market and helps them
to compete with them.

REFERENCES
 Wu, X. and Zhou, J., 2021. The Influential Factors of Developing Better in the Global
Stream Media Market: An Analysis of Netflix.
 Fristly, A. and Gunawan, D., 2021. Analysis of Telco Operators in Attracting Netflix
Subscribers in Indonesia Using Porter’s 5 Forces.
 Irfan, M. and et.al., 2019. Competitive assessment of Indian wind power industry: A five
forces model. Journal of Renewable and Sustainable Energy. 11(6). p.063301.
Online
 Netflix Porter's Five Forces Analysis. 2022. [Online]. Available through:<Netflix Porter's
Five Forces Analysis>
 SWOT Analysis of Netflix. 2022. [Online]. Available
through:<https://bstrategyhub.com/swot-analysis-of-netflix-2019-netflix-swot-analysis/>