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Netflix: Swot Analysis and Efficient Recommendation

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Table of contents

  1. Strengths
  2. Opportunities
  3. Recommendations

Netflix ultimate goal was to stop families from leaving the comfort of their homes and stay in to stream from the couch or bed. A SWOT Analysis will be conducted in order to generate an efficient recommendation. There are a few key Factors that will be mentioned.

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Direct access to movies, Netflix originals, and TV shows

Direct download through all internet connected sources such as Smart TVs, phones, laptops, etc.

Client Loyalty Weaknesses

Technical problems switching DVDs to online videos

Competition from competitors that have been here before their launch such as Pay per view, Red Box, “On Demand” and Channel networks like HBO, Showtime, and Starz.


The company offers streaming that could be streamed from several different devices. Having more than one way to stream is a huge plus in the streaming industry.

Although the streaming industry is greatly congested the platform for new competitors remain. Most competitors don’t have the monetary ability to stream on their own so most try to link up with existing networks to speed up the existence in the industry .Netflix CEO Reed Hastings invented the best internet service for the world. His invention withheld number 1 for a while and that’s what he intended. The company over the years has grown more than 62 million subscribers across the world and averages 36% of households that are Netflix Subscribers. The streaming world hasn’t reached its peak but can imagine how many more millions of household will subscribe. Who will benefit the most from streaming. The rise will solely depends on the separation from major cable Tv subscriptions. Becoming Number one and remaining number one is the main goal.

Gaining a bigger audience and actually getting them what they want and when they want is crucial and has led up to a competitive war. Just when Netflix thought blockbuster had disappeared after filing bankruptcy somehow were able to reinvest $500 million dollars against them. Meanwhile Netflix took the initiative to utilize a defense tactic. This defense strategy helps subscribers to have straightforward utilization of the tools from home. This strategy allows lower overhead through major networks and channels. The competitor red box may offer DVDS but not in the same manner as Netflix . Red Box still requires for you to leave your home, when Netflix offers mailed Dvds as well as online. The greatest advantage that Netflix has over the competitors. The subscriber just goes online on the device the Netflix is located and click the video they wish to view. Netflix has also collaborated with other companies who create and sell devices that have Netflix installed (smart tvs). These assets are Key benefits to have over the other competitors.

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As a recommendation, Netflix focus should overall be on video streaming. Using the Focus strategy to narrow the competitive scope can be very useful and could slowly eliminate other competitors. Recognizing a problem exist is one of the first steps in decision making and allows Netflix to come up with solid solutions. By Obtaining advanced technology develops new audiences. Being number one in streaming technology will entitle Netflix to divide themselves from their rivals which will also put them in the lead in an economical advantage. Streaming will bring a bigger audience than their initial :video through mail” strategy. Streaming offers accommodation for the moment plus years to come globally. Cable and satellite offers the same but at a higher cost. Netflix has lower fees which is the main advantage they have on competitors which generates more subscribers and their loyalty. Netflix should continue to have low fees that are competitive, extraordinary customer service, and a goal to keep their credibility in an evolving industry.

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Netflix: SWOT Analysis and Efficient Recommendation. (2019, August 08). GradesFixer. Retrieved May 28, 2023, from
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