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Swot Analysis of Netflix’s

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Swot Analysis of Netflix’s essay

Table of contents

  1. Applied Theory
  2. Strengths
  3. Weaknesses
  4. Opportunities
  5. Threats

Applied Theory

The key elements of Netflix’s strategy today are producing their own content to reduce content costs, increasing the number of high quality TV series’, make deals with Comcast and other ISPs to develop high speed internet service to its consumers and

Netflix is a downright threat to cable television seeing as they have original content and having access to another way of distribution, this being the Internet, which will allow customers to stream shows they want and in turn pay a fair monthly fee instead of paying for a bundle of TV shows that you don’t watch.

They all provide alternate products and services by allowing customers access to movies. The strengths of Netflix are the algorithms to help customers find movies and television shows, brand recognition and the increasing number of production studios supplying it with original content.


Streaming Capability- This allows you to watch what you want to at any time and it can be accessed on many different electronic devices.

User Experience- DVDs are delivered to your home which is convenient and customers can almost have a movie to watch as well as the streaming capabilities this all adds up to an overall great experience.

Affordable Prices- a moderate monthly fee is charged while it allows you to watch any movie you want either through streaming or on DVD. It is also less expensive than cable while giving you a wider selection.


Terms of content Distribution- they are not private meaning that Netflix’s competition have access to the same movies and TV shows making it easier for the competition.

Pricing Power- Production studios can still make some serious demands which delaying times when various movies will be available and for how long.

Still Concerning pricing power- it has to adhere to rates and schedules set by the US postal services and also rates set by streaming providers.


Distribution- more pricing power goes to Netflix as its value increases due more subscribers come abroad thus giving Netflix more value as a distributors.

International-Expansion has allowed it to reach out to almost every large international market with the exception of China.


Other streaming offers- Anyone with a large sum of money can get licenses on content and provide this service with YouTube being a serious threat to Netflix.

Content producers going somewhere else- Producers move to where there are favorable deals for their content and if they end up giving their content to Netflix’s competition making it difficult for Netflix to have the same content as the competition resulting in customers favoring competition rather than Netflix.

Increment of Subscription Rates- Due to a higher demand Netflix had to increase its subscription rates which did not sit well with previous Netflix users which resulted in stock prices falling.

Awareness of need-In this stage the customer recognizes their need or want for a product or service which is why Netflix makes sure that each movie has at least have one trailer not only do they release the trailer but along with it comes the release date and that draws the customer with a want to watch these movies. They also advertise themselves online on sites like Facebook which attracts users to it.

Search for more information-This is the stage were the customers now wants to learn more about what exactly you want to offer. The customer relays on external and internal factors as well as past interactions with the brand which influences their decision. Any information regarding Netflix needed by the prospective customer can be seen online with the hopes that it will reel them in and ultimately influence the customers’ decision to be favorable to them. Netflix also gives you a short description of what you searched.

Evaluation of alternatives- At this point of the decision making process the prospective buyer looks at all their options and weigh in all the pros and cons that each option may have. People would normally compare cable services to Netflix, for Netflix to set themselves apart and make them a definite go to where movies and TV series are concerned, they set moderate monthly subscription fees that attracted people seeing as Netflix offers a wider selection of things at a lower price as compared to the over-priced cable television were you are forced to pay for things you don’t even want. This definitely reels in many customers due to the good bargain they believe to be getting at Netflix. They also make sure their services are always exceptional which leads to good customer review and these satisfied customer would end up going to their friends and inadvertently advertise your product for you, which is a technique Netflix seems to have adopted.

Actual purchase decision-With the crazy deals that Netflix offers compared to its competition customers are forced to pick Netflix due to things like the customer reviews as well as the low subscription fee with the promise of having the power to watch movies one after the other just at your fingertips without actually having to suffer through not finding anything you would want to watch at that time since you cannot control what airs on cable. All these factors impact the potentials users end decision and the way Netflix has done it they will have you eating out of their palms in no time.

Post-purchase contact with firm-As a business it is their job to make sure that after the customer has chosen you, you must keep them happy and satisfied to keep them wanting more which would end up with you gaining loyal customers in the long run. Netflix keep their customers wrapped around their fingers and spellbound through the discounts they offer which keep the users coming back for more. Also the fact that nearly every movie and TV series has a trailer keeps the customer happy because they are able to see what it is that they want to watch instead of having to rely on he says and she says. You are also allowed the option to choose to change whatever plan you had previously chosen and change to something that satisfies your needs.

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SWOT analysis of Netflix’s. (2019, March 27). GradesFixer. Retrieved November 28, 2022, from
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