Netflix SWOT Analysis

Netflix SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Netflix, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

Netflix is one of the leading brands in the media & entertainment sector. The article below lists the Netflix SWOT and includes its target market, segmentation, positioning & USP.

SWOT Analysis of Netflix

For Netflix, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Netflix Strengths

The strengths of Netflix looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value.

A list of strengths is mostly the starting point in starting SWOT analysis. Below are the Strengths in the SWOT Analysis of Netflix :

1. Netflix is one of the most popular streaming service consisting of shows, movies, documentaries, biographies and other forms of content

2. One of the biggest strengths of Netflix has been the originals

3. There are multiple plans as per user's convenience and device type used. e.g. There are mobile only plans for markets where consumers watch content through phone primarily

4. Netflix's Content can be accessed on any device (Smart TV, PC, mobile, tablet etc.) based on the plan 

5. Netflix is available in many countries and is becoming leader in the OTT services across the globe

6. It had more than 200 million subscribers as of 2021

7. Netflix is available in multiple languages catering to local markets as a lot of subscribers prefer and consume content in local languages

8. Netflix was able to cope up during the Covid-19 pandemic situation, it had cut down on HD content at some locations though

9. Netflix has made its service affordable to many as compared to its early days when it had less number of plans and was perceived expensive.

10. Netflix has high brand recall and awareness levels and is seen as pioneer of the OTT industry

11. Some Netflix shows like House of Cards, Stranger Things, Money Heist etc. have brands of their own

12. Netflix has adapted well over the years as the business started from being a CD/DVD rental service and has now become the biggest OTT platform globally

Netflix Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Netflix SWOT Analysis:

1. Services like Netflix is available through high speed internet which is not available to everyone and across all countries

2. With pressure increasing for producing high quality content, the costs to produce originals is rising 

3. Netflix rates are still very high for many geographies as compared to its biggest competitors

4. No user generated content is allowed on the platform which can be a weakness though Netflix controls the content quality themselves.

Netflix Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Netflix SWOT Analysis:

1. Netflix can consider possibility to tie up with telecom providers to offer bundled packages to subscribers

2. It can also tie up with conventional media houses and TV channels to showcase their content to target audience

3. Netflix should produce more local content for specific countries

4. Possibility of Netflix phone or tablet can be considered

5. Netflix opportunities would definitely including collaborating with local content producers for certain geographies to have more loyal and diverse audience

6. Gaming and related content is one area where Netflix can diversify

Netflix Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Netflix are as mentioned:

1. Threat from other streaming competitors

2. Government regulations can create issues for services like Netflix

3. High monthly cost of Netflix can be a threat 

4. Services like games can take the timeshare

Similar to Netflix

1. Amazon Prime

2. Hulu

3. HBO

4. Youtube

5. SonyLiv

6. Viacom

7. ErosNow

8. Showtime

9. CBS Interactive

Hence this concludes the Netflix SWOT analysis.

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About Netflix

Netflix Overview
Parent Company	Netflix
Category	Digital Entertainment/Streaming
Sector	Media & Entertainment
Tagline/ Slogan	See What's Next;Watch Anywhere
USP	One of the biggest online streaming subscription based service in the world
Netflix STP
Segmentation	People looking for digital entertainment
Target Market	18-40; Upper Middle Class
Positioning	Digital Streaming which can be accessed anywhere and anytime

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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