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Netflix Swot Analysis

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Netflix SWOT Analysis

Netflix is the world’s leading Internet subscription service for enjoying movies and televisions show. Netflix is currently taking on an innovation strategy in hopes of repairing critical damage to their image that was made by significant changes to product and membership costs. Netflix strategy is to continue to build a platform that allows for consumers to obtain the best streaming subscription business both domestically and internationally. According to Netflix’s Annual Report they state, “We are continuously improving the customer experience—expanding our streaming content, with a focus on programming an overall mix of content that delights our customers, including exclusive and original content, enhancing our user interface and extending our streaming service to even more Internet-connected devices while staying within the parameters of our consolidated net income (loss) and operating segment contribution profit (loss) targets.” Netflix has previously put focus on operating on margin targets. However, moving forward they will put primary focus on operating within specific parameters of each segment. The three segments include domestic streaming, international streaming and domestic DVD. In 2011, Netflix had recognizable struggles with consumers due to significant changes in their price point. They took an approach to rebrand themselves in 2012 and focused on the consumer and creating an exceptional customer experience. Their projected strategy for 2013 was to continue to offer superb customer service and expand the company through technological advancements. By looking at some of the opportunities that Netflix is looking to obtain and combing the strengths that exist they will be able to fulfill the strategy set forth. For example, DVR penetration is climbing which means more and more consumers are watching televised programs at

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