Netflix Case Analysis Essay

Decent Essays
Situation Analysis The article began by introducing an awful reality for the Netflix Company: in just three months, stock prices had fallen by 75% and the company had lost 800,000 subscribers. This rapid change in consumer’s attitudes was based solely on a pricing decision that Netflix recently made. No longer could subscribers just pay $9.99 for DVD rentals and free online streaming-they would now have to pay $7.99 for DVD rentals and an additional $7.99 if they wanted to continue enjoying online streaming. For the typical Netflix subscriber, their rates went from $9.99 a month to $15.98 a month. However, to understand why Netflix made this decision, a brief history and understanding of the company is necessary. Netflix began as a mail delivery …show more content…
Its first weakness is the lifespan of the product. Shipping is hard on DVDs and it is estimated that each DVD was only good for 24 round trips. Early loss of a product is costly, and was a substantial weakness for the company. The second weakness is the lack of variety with online streaming. Many subscribers liked using online streaming more than the hassle of mail order DVDs, so they quit that subscription and only paid for online streaming. However, they were met with a narrow product selection, which caused disfavor among consumers. This lack of product diversity was another weakness of the company. The third weakness is the accessibility of the product. Many families do not have access to internet, and even if they do, it might not be high-speed internet capable of streaming movies. This inability to distribute and make the product easily accessible is a major weakness for the company and reduces the potential amount of subscribers. In addition to its strengths and weaknesses, Netflix’s opportunities are multitudinous. One opportunity is expansion of the product line through video game rentals via mail or digital streaming (technological). Another opportunity is the potential to expand their market globally, which will be possible as more and more countries gain access to the internet (economic). A final opportunity is to expand the type and variety of movies available through online streaming. For example, Netflix could offer classic movies, which would appeal to their older subscribers

Related Documents

  • Decent Essays

    Tivo Case Study Tv's Case

    • 861 Words
    • 4 Pages

    TiVo’s new features offered consumers the opportunity to not be limited by networkers. However, changing consumer habits was extremely difficult. Most consumers are satisfied if a product is “good enough,” so they do not see a reason to switch. In TiVo’s case, on-demand television was new, but few really switched. Moreover, TiVo’s marketing campaign did not succeed as it was more difficult to explain the features of TiVo than to experience them, generating limited interest.…

    • 861 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The author also explains that as much as many individuals expect a better outcome from the use of the online courses, the results of this step are usually bad and unprogressive especially for the students. Another disadvantage of the method of study is that it is expensive and therefore limits most of the citizens who are not well versed with the digital world from acquiring the reliable information that is needed to pass the course. The online system also inhibits the development of critical thinking skills in students as most of the information is gathered from the internet and through an easy way. It also makes the student dependent on the internet research system distracting their study mechanisms from the books and field…

    • 874 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Yes, give him/her a good computer with unlimited internet connection and watch what their behaviors. The simple truth is that expensive data and poor internet coverage has discouraged many people from using the internet. I am saying all of these because I have experienced it. When I was in the university, poor internet connection was my greatest challenge. There are times I could not download a 200 KB file due to extremely poor connection.…

    • 1141 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Johann Hari, the author of “The Likely Cause of Addiction” has called attention towards realizing that addictions like this are a huge problem. Hari talks about how it is way too easy to be disconnected from society and how it will become worse. The american people today are disconnecting from their society because of social media and they do not realize it. More and more americans are being disconnected from society through social media because most individuals choose to stay at home. For example, back during the seventies the kids during that time did not have the technology we have today.…

    • 1155 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    For a long time no one had any power over monopolies. Eventually the the US realized that monopolies were hurting the economy and ruining other small companies. Even today there are still modern day monopolies that many people do not notice. For example Netflix is a monthly paid application downloaded to your TV and or your phone. Netflix offers lots of TV shows, movies, and TV series.…

    • 919 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    I. Abstract EBay is the most used online shopping website because there is a wide range of items sold that is not available in a lot of others online shopping store. II. Introduction E-business is a way of making people lives easier to buy things which are not available in their country online and it is also a way for people to earn money. E-business is not an easy task which is why a lot of people fail at it as there are various problems they encounter. One example is how information security and quality of product hinder the development of e-business very much.…

    • 1990 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Increasing concerns of Netflix’s customers over the infringement of their private information. 4. Excessive dependence of companies like Netflix on Big Data for creating original programming gravely affects creativity. The recommendations become so specific for a customer that one might not be able to explore any out-of –the-box content at all. ALTERNATIVES 1.…

    • 992 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The Movie Rental Industry

    • 979 Words
    • 4 Pages

    Taking advantage of the competition’s main weaknesses One of Netflix and Redbox’s biggest disadvantages is that their movie libraries are limited. Most classics and foreign-language titles are not readily available, with consumers being forced to look for alternative sources. Focusing on curating a collecting of movies that are hard-to-find ensures that clienteles will return to the store. Another disadvantage is that Netflix relies on a strong internet connection, which, except for a few first-world countries, is hard to come by. This results in a lot of lag on the streaming device and buffering which is quite an inconvenience when it occurs at 5-minute intervals during a movie.…

    • 979 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The biggest weakness that Comcast has is the fact that many view them as a company that will do whatever it can to churn a profit without putting the customer’s wants and needs first. Others just think they are evil. As a way to fix that, they changed their name to Xfinity, so people would forget how bad the name “Comcast” was, but they are still working out the bad publicity they get sometimes, especially with their poor customer service. Another rather large weakness that stuck out was how Comcast offers landline phone options in some of their packages. As discussed in class, not many people even have a landline unless they are forced to due to low cell phone service at their homes.…

    • 1093 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    • Now a day’s older population mostly not interested in latest Sony products which have more better improvement and good features and one of the main reasons they do not purchase these products because they are very costly. Sony products are for the next generation so the older populations don’t go for the products of Sony. • Due to expensive product of Sony as compared to its competitors many people’s can’t afford to buy their products For example mostly Pakistani citizens cant able to afford to buy Sony product so they go for cheaper products available in the…

    • 1795 Words
    • 8 Pages
    Decent Essays

Related Topics