In this project thesis a SWOT analysis will be performed on the media company Netflix, Inc. Netflix is the world’s leading internet entertainment service with over 109 million members in over 190 countries. It ranks place 28 in 2017’s list of the top 100 world’s largest media companies. The success of Netflix has increased constantly in recent years. The reason for this is the evolution of media consumption. The new generation watches series and movies on streaming platforms like Netflix and no longer on television.
People have become more independent and can decide for themselves when and where they want to follow their series and movies. Netflix’s influence grew in the past but the fight about the TV has not started yet. One day in the near future it will commence, and Netflix needs to be prepared for that. In this project thesis a detailed analysis of the strengths, weaknesses, opportunities and threats of Netflix will be conducted.
The special challenge for Netflix is to have a good plan as soon as the cable TV programmes try to attack. Different possibilities of offering better and more customer-oriented content will be analysed. Will Netflix eventually replace the traditional television as we know it and become the number one provider for streaming services? This project thesis will analyse the current situation and in the end a recommendation for Netflix’ future will be given.
Table of Contents
- 1. Introduction
- 2. Definition and methodology of SWOT
- 2.1 The SWOT matrix
- 2.1.1 SWOT combination and norm strategy
- 2.1.2 Benefits and limits
- 2.1.3 Preparation and execution
- 3. Presentation of Netflix
- 3.1 Offering and subscription variety
- 3.2 Business model
- 3.3 Management
- 3.4 Corporate and employee culture
- 4. Presentation of the Video-on-Demand market
- 4.1 Video-on-Demand market in Germany
- 5. SWOT analysis and matrix for Netflix
- 5.1 Strengths
- 5.2 Weaknesses
- 5.3 Opportunities
- 5.4 Threats
- 6. SWOT strategy
- 6.1 Strengths and Opportunities
- 6.2 Weaknesses and Opportunities
- 6.3 Strengths and Threats
- 6.4 Weaknesses and Threats
- 7. Conclusion of strategy
- 8. Critical reflection
Objectives and Key Themes
This project thesis aims to conduct a comprehensive SWOT analysis of Netflix, the world's leading internet entertainment service. The analysis will examine Netflix's strengths, weaknesses, opportunities, and threats in the context of the evolving media consumption landscape and the potential challenges posed by traditional television. The ultimate goal is to provide recommendations for Netflix's future success. * Analysis of Netflix's competitive position within the Video-on-Demand market. * Evaluation of Netflix's business model and corporate culture. * Identification of key strengths and weaknesses of Netflix's service. * Exploration of potential opportunities and threats facing Netflix. * Development of strategic recommendations for Netflix's future.Chapter Summaries
1. Introduction: This chapter introduces the subject of the thesis: a SWOT analysis of Netflix. It establishes the context of Netflix's success within the evolving media landscape, highlighting the shift towards streaming services and the increasing independence of media consumption. The chapter sets the stage for a detailed analysis of the company's current situation and prospects. 2. Definition and methodology of SWOT: This chapter defines the SWOT analysis methodology and its application to the Netflix case study. It explains the structure of the SWOT matrix, detailing the meaning and significance of each quadrant (Strengths, Weaknesses, Opportunities, Threats). The chapter elaborates on the benefits and limitations of using a SWOT analysis for strategic planning and outlines the steps involved in preparing and conducting such an analysis, laying the methodological groundwork for the rest of the thesis. 3. Presentation of Netflix: This chapter provides a detailed overview of Netflix as a company. It explores Netflix's diverse offerings and subscription models, analyzing the different tiers and their impact on market reach and revenue generation. The chapter delves into Netflix's unique business model, examining its revenue streams, cost structures, and overall profitability. Furthermore, it provides insights into the company's management structure and corporate culture, illustrating how internal factors contribute to Netflix's overall performance. 4. Presentation of the Video-on-Demand market: This chapter provides a comprehensive overview of the Video-on-Demand market, both generally and specifically focusing on the German market. It analyzes the market size, competitive landscape, and key trends shaping the industry. This context is crucial in understanding the challenges and opportunities Netflix faces as a key player in the sector. The focus on the German market provides a geographically specific case study within the larger context. 5. SWOT analysis and matrix for Netflix: This chapter presents the core SWOT analysis of Netflix, systematically categorizing its strengths, weaknesses, opportunities, and threats. Each category is thoroughly explored, with detailed examples and justifications. The chapter also presents the SWOT matrix itself, visually summarizing the analysis and laying the groundwork for strategic recommendations in subsequent chapters. 6. SWOT strategy: This chapter builds upon the SWOT analysis presented earlier, developing strategic recommendations based on the identified factors. It systematically examines different combinations of strengths, weaknesses, opportunities, and threats, developing actionable strategies for Netflix to leverage its strengths, mitigate weaknesses, capitalize on opportunities, and address threats. The chapter structures its analysis around four key combinations, offering a multi-faceted approach to strategic planning for Netflix.Frequently Asked Questions: Netflix SWOT Analysis
What is this document about?
This document is a comprehensive SWOT analysis of Netflix, the world's leading internet entertainment service. It provides a detailed overview of Netflix's business, its market position, and strategic recommendations for its future success. The analysis includes a table of contents, objectives, key themes, chapter summaries, and a structured SWOT matrix.
What are the key themes explored in the analysis?
The analysis explores several key themes, including: Netflix's competitive position in the Video-on-Demand market; its business model and corporate culture; its strengths and weaknesses; potential opportunities and threats; and finally, strategic recommendations for Netflix's future.
What methodology is used in this analysis?
The primary methodology used is a SWOT analysis. The document defines the SWOT methodology, explains its application to Netflix, details the structure of the SWOT matrix (Strengths, Weaknesses, Opportunities, Threats), and discusses the benefits and limitations of this approach. It meticulously outlines the preparation and execution of the SWOT analysis.
What aspects of Netflix are analyzed in detail?
The analysis includes a detailed presentation of Netflix, covering its diverse offerings and subscription models, its business model (revenue streams and cost structures), its management structure, and its corporate culture. It also provides a comprehensive overview of the Video-on-Demand market, both generally and specifically focusing on the German market.
What does the SWOT analysis reveal about Netflix?
The SWOT analysis systematically categorizes Netflix's strengths, weaknesses, opportunities, and threats. Each category is thoroughly explored with detailed examples and justifications. This detailed analysis culminates in a SWOT matrix visually summarizing the findings. Subsequent chapters then build on this analysis to develop strategic recommendations.
What strategic recommendations are provided for Netflix?
Based on the SWOT analysis, the document develops strategic recommendations for Netflix. It systematically examines different combinations of strengths, weaknesses, opportunities, and threats (SO, WO, ST, WT), offering actionable strategies for Netflix to leverage its strengths, mitigate weaknesses, capitalize on opportunities, and address threats.
What is the overall goal of this analysis?
The ultimate goal is to provide actionable recommendations for Netflix's future success by identifying key areas for improvement and strategic growth within the competitive landscape of the streaming industry.
What is the structure of the document?
The document is structured logically, starting with an introduction and proceeding through a definition of the SWOT methodology. It then presents a detailed analysis of Netflix and the Video-on-Demand market, followed by the core SWOT analysis and strategic recommendations. The document concludes with a critical reflection on the findings and their implications.
- Quote paper
- Emmy Bethmann (Author), 2018, SWOT analysis of Netflix, Munich, GRIN Verlag, https://www.grin.com/document/590460
