Netflix Analysis Assignment Help- SWOT Analysis


Netflix Inc. Overview

Netflix is a US company that offers subscription platforms for TV shows and films. Marc Rudolph and Reed Hastings founded Netflix in 1997. It is also the world’s pioneer legal streaming following the release of thousands of movies and episodes. Netflix is a modern European market that experiences tremendous economic growth (Lüsted, 2012). Netflix’s head office is located in Los Gatos, California. The company employs more than 2300 staff with a turnover of $5,504.7million. Netflix CEO is Reed Hastings. The main competitors of Netflix include instant video platform by Amazon Prime, HBO, Popcorn Time as well as Hulu Plus. Starting with a DVD rental operation, the firm found it difficult to establish a profitable, favorable cash flow market until the company’s reputation rose as a leader in the transformation of the online entertainment industry (Afuah, 2014). This understanding is consistent with the strategic goal of Netflix of revolutionizing how users view and communicate with content. Lüsted (2012) asserts that their specified idea on how they will do this is to become the best global distributor on entertainment (meaning the cheapest, most straightforward, and most trustworthy) to license the world around and to assist content producers in attracting a foreign audience.
Netflix company has over 130 million subscribers in hundreds of countries around the world. More than a third of all Internet traffic in the US is protected because users have unrestricted, decommercialized, and all-embracing access to the broad spectrum of TV programs, full-length movies, and more (Favaro, 2018). Netflix has conquered the video entertainment market, but the landscape is evolving quickly, and its approach to achieve sustained growth needs to be continuously reassessed. This study analyzes Netflix internally and externally and discusses the competitive issues facing the entertainment giant and provides strategies for meeting its core goals. These recommendations accompany specific behavior and the estimated timeframe for execution.

Innovation and creativity

Innovation entails the introduction of a new way of performing a task or doing something (Luecke, 2013). Business owners develop management, production, marketing, and commercialization approaches and strategies over time. Besides, these innovations work for some time before the redesign of other technologies. A perfect example of creativity is a relatively new concept of Business Intelligence (BI). BI is a compilation of technology and procedures for access and review of data by individuals on all organizations. That makes it easier to make quick decisions because everyone knows what is going on in the organization and has very detailed knowledge.
On the other hand, creativity is the capacity for innovation. Creative people are always looking for new approaches, modern styles, new styles, new problems, and new limits (Goller & Bessant, 2017). This paper will also explore how workers of Netflix should leverage creativity to increase productivity in a quickly developing economic climate. The bulk of innovators are recent entrants. Innovations, fresh thoughts, and a new way of addressing challenges typically come with individuals and businesses. But technology benefits the novice in several ways.

Innovation in Netflix

In 1997, when Netflix began its business model was already a significant breakthrough, selling a service that required people to rent DVDs unlimitedly. DVDs have been shipped to consumers via the post office. We may assert at this stage that Netflix has already embraced the concept of innovation as Stoldt (2016) defined, and that digital media has created a new opportunity for itself. The idea of the blue ocean strategy was introduced to Netflix from the outset. The Blue Ocean Strategy is a historical technique for developing new business, with a new user community that contributes to high revenues. Netflix built a new opportunity and successfully implemented its blue ocean approach with the adoption of DVDs and delivering it to consumers straight to the clients’ residents.
By achieving revenue of $5,006,00, the company also gained some capital in 1999. It helps them to concentrate more on creativity and on how their business can be strengthened (Barker & Wiatrowski, 2017). Therefore, they initiate a tailored suggestion for films in 2000, following a year of evaluation, based on their membership scores. Consequently, this innovation, which offers a superior quality company, rose in 2001 from 292 000 workers, with the number of citizens 200 to 456.00 million. From 1999 to 2007, the Netflix post office distributed DVDs to their customers (Lüsted, 2012). The Internet meanwhile, became a big phenomenon in the year 2007, and is already used by 70.2% of the Americans. Reed Hasting decided to give his company a subscription service that would encourage viewers immediately to view TV shows and movies on their PCs instead of battling this disruption called the “internet,” which might pose a significant challenge for his company. In reality, Netflix has continued to use it as a catalyst for development instead of battling creativity. Netflix was revolutionary in 2009 and 2010 for being compatible with other services such as Xbox, PlayStation, iPad, and iPhone. Netflix is also now available for smart TVs on smartphones and Android devices (Barker & Wiatrowski, 2017). An odd thing about Netflix is that they do not have a consistent invention mechanism deliberately. The definition of the method itself does not blend into the business ethos of Netflix. They even say, ‘You stop innovating when you lock you in a single cycle. Netflix claims that they have to be free to work and consider so that they have the best possible thoughts, without several moves, if you want anything suggested. The theory is an innovative approach that encourages you to evolve and play with new things. This dream of creativity is based on a positive corporate culture, in which every individual can do as he wants so that it suits Netflix.

External Analysis

For many years now, the TV series market has been rising strong. Netflix is the largest worldwide Internet streaming service for film and TV shows. The business reported 7.05 million users in the fourth quarter of 2016, double the number of users introduced in the third quarter. Seventy-three percent of these potential customers come from foreign markets – the customer development approach in the company’s emphasis. Netflix strategy of continuing to develop a network aiming at enabling customers both internally and externally to achieve the best streaming service company

Netflix Company SWOT Analysis


Netflix has been a pioneer in the world of film streaming. As the first enormously profitable film distribution firm, they have made fair use of the first-mover business advantage.
Netflix Company has emerged as among the top distributors of TV shows as well as subscription streaming worldwide, with over 98 million users worldwide. Its Internet-based payment platform makes it easier to deliver more user-friendly content than mainstream channels (Ferrell & Speh, 2017). Netflix launched its services to a total of 130 countries in January 2016, with a total of 190 countries providing streaming. This growth will help to offset the impact of sluggish growth in the US. For many years now, Netflix has delivered exclusive content


Today’s misleading earnings have been announced by Netflix (the price was 11 per cent lower by this writing). The significant decline in foreign subscription supplements is a specific area of concern. Although it expands over 130 countries, the management of Netflix has led to slow the growth of international subscribers from 4.5 million adds to just 2 million in the current quarter.
Cable TV and package services in the United States are very pricey. It is not unprecedented for a family to spend more than $100 a month in packages of bills costing more than $200, costing wireless internet and cable TV. Overseas pay television is much less costly because of greater demand and stricter controls.
Netflix company is going to face a huge number of competitors that focus on cable or satellite-free over-the-top television (OTT) coverage. This year Google will debut its YouTube TV, with Hulu also promising an OTT next year. Dish and AT; T also improve their deals through DirecTV. In the meantime, Amazon’s original material has grown too. More premium programming ensures that Netflix will also be forced to invest more in content.


Binge-watching is a bustling phenomenon in the world today and a custom in which most of us have positively engaged, even though you do not embrace it. Following Netflix’s entry into the realm of Serialized Series, the term came to general use. Since Netflix started showing tv shows during the entire season at once, the viewers could stream as many episodes at a time and on request at any time as they wanted.
RBC analyst Mark Mahaney estimates that Netflix will make over $1billion annual sales of products for its immensely successful originals, such as Stranger Things, a retro science-fi adventure from the 1980s, The OA, and BoJack Horseman’s adult animated comedy. Mahaney said in a recent note to subscribers, “This is a most positive move for Netflix to start selling and distributing its original programming and other deals.” He added that while this will take years, “We see the growth of an increasingly dominant multinational entertainment service. We consider this as being a move forward”.
The goals of Netflix merchandising remain in the early stages. Stranger Stuff premiered at Hot Topic in early December 2016 with its BoxLunch social spin-off (Zappe, 2017). Following a relatively fruitful pilot program, Netflix posted a list for a merchandising and marketing management firm earlier this year to license books, comics, toys, choosing products, soundtracks, and clothes to establish a licensing and merchandising strategy which will intensify the enthusiasm of critical titles by creating new platforms that will enable customers and communities to engage with Netflix.
India and other nearby nations, such as Pakistan, Bangladesh, and South-East Asia, are among the nations that Netflix is looking to grow its viewers. A significant feature of the region is that, in many of these nations, English is used as a second language. Furthermore, Hollywood films are more prevalent within the local market that can minimize the need for personalized content to be produced. (There is a need for personalized contents).


The biggest challenge facing the organization is rising competition. There is also significant technical progress in the market of online entertainment content, and fewer barriers to entry into a streaming marketplace mean that competitors thrive. Most customers use many entertainment providers and can quickly adjust their budgets based on several factors. One such rival is It’s Amazon Prime Subscription is the monthly loyalty scheme, which gives consumers access to their online viewing site, featuring thousands of films and TV shows, besides providing unpaid delivery on millions on physical products (Stoldt, 2016). The wide variety of original titles will contend strongly with Netflix’s selections with viewing. A premium television package has also been announced for the CBS network. Over the coming years, we expect the rivalry to continue to rise.
In specific from peer-to-peer networks, Netflix faced a significant challenge from video piracy. Its famous shows, including White, is the New Black and House of Cards were illegally downloaded by millions worldwide, and suffered immense losses. Netflix may face a possible challenge from the black market around the world in the form of a sale. More and more young people from 20 to 30 years old can download online. Such clients do not require a subscription package because much of their content is free of charge.

Binge Watching Innovation

Binge-watching is a comparatively recent pattern of behavior, characterized as viewing from two to six episodes of a one-session TV series. The creation of this mindset has gained traction in various on-demand entertainment platforms including Hulu, HBO GO, Amazon Prime, Disney+, Crunchyroll and Apple TV. In 2013, Netflix launched different types of watching TV shows, which allow users to browse and display as many shows as they want from a wide selection of content. A TV series is available at once during the entire season. The spectator must not wait a week until the next episode, typical of standard TV, is released. However, binge viewing prevailed earlier and was evident in TV marathons, VHS, DVD, DVR, digital video recorder, or VOD on-demand as viewing several shows. Between 2011 and 2015, the popularity of binge-watching has grown to become a natural way to consume TV series among the general public
Aarsen (2016) uses various approaches to examine modern digital texts’ patterns of use. She analyzes reader encounters of novels, films and TV shows from a theoretical standpoint using a combination of polls, reviews, focus groups and journal receptions. She concluded that textual buildings lead to improved relaxation and travel stimuli during binge-viewing encounters in time with the enjoyment of the audience. This increased cognitive understanding is correlated with the existence of texts that are rendered and created through binge viewing. Furthermore, she suggests that the word marathoning she prefers to binge is ‘an alternate form of flow,’ a definition of TV viewing in the 20th century that tends to be user-driven, self-perpetuating (because of the motivations of the system and the audience) and mostly self-contained.’ This enhancement by the public by better texts is also related to the current contemporary story of the Platinum Era of television (Zappe, 2017). Audiences are not only allowed to regulate their use through technologies; they use the technologies to communicate and create a culture in ways that impact material creators. The appetite of fans of the binge-viewer is rekindling, and streamed channels are purchasing shows which were missed on mainstream broadcast TV, such as the Delayed Growth, which resist typical revenue-based models. It illustrates the conflict in our perception of TV as the ‘political interest of the media is mediated and revamped. Binge-watching is instead a combination of technology and society in motion (Wang, 2019). In practice. It symbolizes the ironic rearticulating of the power over the crowd by viewers who lack their influence
Since binge-viewing transforms how technically and psychologically TV can be interpreted and appreciated, we concluded that it had the authority to transform the way media scientists researched TV. We also looked at how the crowd feels from the point of view that considers the listener, on this conceptual basis. Our methods that substitute the unidirectional researcher express this view!! Supply/controller! Receiver philosophy for We then used the thick details given by the viewers to explore how U&G TV work could be improved with updated technologies and culture of binge viewing. The reflexivity of the participants in the study provides a context to revisit current debates on science and the role of reflexiveness in these debates.
On the contrary, binge-watching has undeniably been the standard and enjoyable way for contemporary viewers to experience television material such as TV shows (Wang, 2019). The pattern has been observed since 2013, but the neurological factors, as well as motivational and emotional processes, as well as personality characteristics, remain scarce. The latest studies stress that repetitive types of binge consumption may be like mental addictions such as computer games/internet dependency and the issue of the use of social media. The immersive activity gives instant pleasure, which can result in a lack of self-control and a much longer time than people initially expected while viewing TV shows. Data also indicates the association between sedentary behavior of this sort and work-related fatigue, sleeplessness, bedtime decatenation, overweight, or rise in unhealthy eating.
Research studies into the health implications of binge surveillance are still under progress, although several reports have raised questions. Avid binge-watchers reported low sleep quality, increased tiredness, and more insomnia, based on a 2017 study conducted in the Journal of Clinical Sleep Medicine (Luecke, 2013). At the 67th annual conference of the International Communications Association in 2017, researchers from Michigan State University discussed a correlation between binge-watching and wrong lifestyle choice as well as for opting for nutritious dinners, unhealthy snacks, and sedentarism.
In the 2018 report, researchers showed that long sittings for binge tracks are equivalent to extended long-haul sedentary activity or disease. They will raise the likelihood of contracting disorders such as deep vein thrombosis, a deadly leg blood clot that splits and spreads to the heart and lungs. In the report, only the required amount of physical exercise was not adequate to reverse the likelihood of coagulation during television binges. Binge-eating and binge-watching are also a part of the practice. Wang (2019) asserts that video marathon and related unmetered snacking will contribute to an increased risk of obesity. Furthermore, data indicate that most people watch binge alone. Studies have related a lack of socialization to increased risk of heart and stroke, not to mention that less critical social ties that increase depression levels and other moody problems.


Netflix has now been the only one that has effectively moved from DVD to online streaming to accommodate the changing customers. The company does not, however, rest on its laurels. Netflix was the first organization to withdraw its commitment to making money watching advertisements between its films and has shown that its consumers, who are sick of time-consuming advertising, are satisfied and comfortable now, more relevant than higher income. In the years to come, I anticipate significant revenue and share income growth for Netflix. The growing portfolio of original content should continue to attract new customers. However, increased pressure on competition will probably remain the primary concern.
Although surely innovating in its website, Netflix does not agree with what constitutes transformative creativity in the McKinsey Company Institutes. Although film rental and streaming have definitely changed, the transition was not swift, nor does it suit the mark of a revolution. Netflix has a wide presence, at the same time that its influence is not large in all countries except continental Iran, Syria and China. This amounts to just 71 million users in 2010. By 2010, 160 million are anticipated by 2019. However, while it satisfies some of the Christensen requirements correctly, it does not follow the transformational mark. It did not transform how people live or operate, and it did not provide any country with competitive advantage. Netflix has disrupted a market that I feel has long been respected by its consumers. Many viewers were confined to cable, satellite or their local tv due to the introduction of subscription platforms. Cable and satellite offered more options than local TV channels, but the options were also stratified and priced differently based on the consumer’s preference.


Aarsen, S. (2016). Craving for more: Binge watching and the level of Addictiveness.
Afuah, A. (2014). Business model innovation: Concepts, analysis, and cases. Routledge.
Barker, C., & Wiatrowski, M. (2017). The age of Netflix: Critical essays on streaming media, digital delivery and instant access. McFarland.
Favaro, M. (2018). Introduction: Netflix as transnational broadcaster. Netflix and the Re-invention of Television, 185-197.
Ferrell, O. C., & Speh, T. W. (2017). Marketing strategy, Loose-leaf version. Cengage Learning.
Goller, I., & Bessant, J. (2017). Creativity for innovation management. Taylor & Francis.
Luecke, R. (2013). Harvard business essentials: Managing creativity and innovation. Harvard Business Press.
Lüsted, M. A. (2012). Netflix: The company and its founders EBook. ABDO.
Stoldt, R. G. (2016). The behavioral effects of the binge-watching Mediamorphosis.
Wang, W. (2019). Is binge watching bad for you? Escapism, stress, self-control and gratifications.
Zappe, F. (2017). Diffusion of service innovation. Innovation patterns of the Netflix and Uber services.

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