Netflix: Analyzing Internal Strengths, Weaknesses & Competitors

This case study provides an internal and external analysis of Netflix, focusing on its strengths and weaknesses. The primary strength of Netflix is its strong brand name and effective delivery system, contributing to customer retention. Its pricing strategy also differentiates it from competitors. However, valuation is identified as a key weakness, along with management's hesitation in raising prices. While content is a strength, the reliance on non-original content can impact consumer trust and loyalty. The analysis also identifies key competitors such as Amazon Prime, YouTube, and Hulu. The study evaluates the effectiveness of Netflix's strategies, including internationalization, diversification, marketing, and technology, noting that while these strategies have contributed to high market share, the low-cost strategy can be ineffective due to consumer sensitivity to price increases. Desklib offers a platform to explore similar solved assignments.

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Internal and External Analysis of Netflix
Strength and Weaknesses
Strength
It has been seen that the main strength of the Netflix is its brand name. Netflix has the
best delivery system which helps to retain the customer for long time. Price strategy of the
brand is also a factor which makes the product different from the other brands. It has been
founded that the brand makes the things easy for the people. People buy the movie tickets to
watch movies and also buy the old movies from each other. But Netflix provides the many
facilities to the users in the cheap amount.
Weaknesses
It has been analysed that valuation is the main weaknesses of the brand. The company
operates in different areas and earns the high amount of profit but it is difficult to access the
acquiring amount. The management of the brand shy little bit in raising the prices due to its
low price strategy and its high demand in the market. The content is strength for the company
but sometimes it is a weakness for the brand. It is observed that the content which is used by
the company is not original due to which the trust and loyalty of the consumers is reduces
(Netflix, 2019).
Competitors
Netflix is the world beater in the entertainment industry. The brand is revolutionized
and which changed the entertainment industry by providing the quality of services to the
users. It has high brand value in the market due to which it increases the threat of
competitors. Amazon prime, YouTube, hulu, and DirecTV are the main competitors of the
brand. HBO Now is also a top competitor of the brand. Netflix is operated in 190 countries

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and Amazon is also operates in 200 countries (Bhasin, 2017). It reflects the competitors of
the brand grab the same share of market. All the competitors of the brand offer the similar
nature of services to the consumers in order to satisfy their demand.
Effective Strategies of Netflix
Yes, I think the strategies which are used by the brand are effective but somewhere it
is ineffective. It has been seen that the Netflix grab the high market share in the short time
due to its strategies. Internationalisation strategy, diversification strategy, marketing strategy
and the technology strategy are the strategies which are used by the company to gain the
competitive advantage and the market share. It has been founded that the brand also adopts
the price strategy which is beneficial at a certain period of time. But sometimes, it is difficult
for the company to raise the prices of the services just because of shyness of the consumer. It
is a fact that the brand losing the large number of consumer while increasing the prices. The
low cost strategy of the company is considered as ineffective for the company. The other
strategies of the company help it to grab the high market share which reflects that the
company has the effective strategies (Wensley, 2016).

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References
Bhasin, H. (2017). Netflix Competitor Analysis. Retrieved From:
https://www.marketing91.com/netflix-competitor-analysis/
Netflix. (2019). About Netflix. Retrieved From: https://media.netflix.com/en/about-netflix
Wensley, R. (2016). The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.