Based in Los Gatos, California, Netflix does an outstanding job analyzing customer buying trends and desires and incorporating that information into its strategic-planning process. Netflix gathers extensive information about its customers usage and content choices, utilizing voluminous individual data into strategic information. An analyst for Janney Capital Markets recently said, Netflix understands its viewers by tracking every single thing they do; and develops patterns among its subscribers, and matches them up properly with content offerings. Doing such an excellent job with customer analysis has enabled Netflix to reportedly obtain one-third of all Internet prime-time traffic in the United States. Lately, the companys streaming video services are focusing more on popular TV shows and less on hit movies. Netflix now has 32 percent of the top 75 TV shows from the past 4 years, compared to Amazons 12 percent, but Amazon is actively promoting its Prime Instant Video service that competes with Netflix. In early 2015, Netflixs stock surged 42 percent in a single day to a 52-week high over $500. Analysts expect Netflixs addressable subscriber base to reach 207 million globally by 2017, as the company grows rapidly across Europe and beyond. Netflix recently entered six European countries: Germany, France, Austria, Switzerland, Belgium, and Luxembourgafter already providing services in the U.K., Ireland, Netherlands, and Scandinavia. Netflix entered Australia and New Zealand in March 2015, followed by Italy, Portugal, Spain, and Japan in October 2015.Pay close attention to Netflixs strategy, and write a case study describing the points listed below.
What are Netflixs internal strengths and weaknesses?
Who are Netflixs competitors?
Do you see Netflixs strategy as effective or ineffective? Why?
Your case study must be at least one page in length, not counting a title page and reference page. Outside sources are not a requirement for this case study, but if you choose to use them, they must be cited and referenced according to APA standards.
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.) [VitalSource Bookshelf version]. Boston, MA: Pearson. Retrieved from https://online.vitalsource.com/#/books/9780134167947
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