Netflix Strategic Analysis Essay Example
COMM 401 MIDTERM EXAM
CASE ANALYSIS: NETLIX
Prepared by: Youssef Tazi
COMM 401 Section N Student ID: 9065806
Table of Contents
I. Introduction………………………………………………………………………………3
II. External Environment……………………………………………………………………..3
1. General Environment Analysis……………………………………………………3
2. Industry Attractiveness: Porter’s Five Forces …………………………………….4
III. Internal Environment……………………………………………………………………6
1. Assessment of Netflix‘s Performance……………………………………………..6
2. Corporate Strategy and Gap Analysis…………………………………………….7
3. Netflix’s Core Competencies……………………………………………………7
IV. Strategic Alternatives……………………………………………………………………9
V. Recommendations…………………………………………………………………………9
I. Introduction:
In 2004, Netflix stood out as the nation’s leader in the online movie rental industry. The rapid growth and success of the company was primarily due to being highly differentiated about the service they offer and being the pioneers of this industry. In point of fact, sales figures have confirmed the favorable position of Netflix compared to the industry average. However, with the increasing rivalry of existing competitors and the threat of substitute technologies, whether Netflix’s leadership will sustain became a big question mark.
II. External Environment
1) General environment analysis
How can the technological changes affect the movie rental business in general and Netflix in particular?
It seems relevant to state, from the company’s perspective, that the most preponderant and influential factor of Netflix general environment is the technological segment. In the case of the movie rental industry, as DVDs are considered a commodity, customers will make their rental decision based on low price and convenience. If better delivery methods can provide those two key success factors, customers will turn up to this new technology.
a) An anticipated decrease in
CASE ANALYSIS: NETLIX
Prepared by: Youssef Tazi
COMM 401 Section N Student ID: 9065806
Table of Contents
I. Introduction………………………………………………………………………………3
II. External Environment……………………………………………………………………..3
1. General Environment Analysis……………………………………………………3
2. Industry Attractiveness: Porter’s Five Forces …………………………………….4
III. Internal Environment……………………………………………………………………6
1. Assessment of Netflix‘s Performance……………………………………………..6
2. Corporate Strategy and Gap Analysis…………………………………………….7
3. Netflix’s Core Competencies……………………………………………………7
IV. Strategic Alternatives……………………………………………………………………9
V. Recommendations…………………………………………………………………………9
I. Introduction:
In 2004, Netflix stood out as the nation’s leader in the online movie rental industry. The rapid growth and success of the company was primarily due to being highly differentiated about the service they offer and being the pioneers of this industry. In point of fact, sales figures have confirmed the favorable position of Netflix compared to the industry average. However, with the increasing rivalry of existing competitors and the threat of substitute technologies, whether Netflix’s leadership will sustain became a big question mark.
II. External Environment
1) General environment analysis
How can the technological changes affect the movie rental business in general and Netflix in particular?
It seems relevant to state, from the company’s perspective, that the most preponderant and influential factor of Netflix general environment is the technological segment. In the case of the movie rental industry, as DVDs are considered a commodity, customers will make their rental decision based on low price and convenience. If better delivery methods can provide those two key success factors, customers will turn up to this new technology.
a) An anticipated decrease in