Netflix strategy has no brick and mortar stores, big stores with a large variety of movies in stock. Netflix relies on the internet for customers’ orders and mail system for the delivery. The company does not have late fees, fluctuating monthly fees, predetermined rental periods, instead has a flat fee. Netflix, allows its customers to view unlimited streaming of movies and TV shows for a monthly fee, and has also developed platforms to deliver its titles for Nintendo Wii, Xbox 360, PlayStation 3, and TiVo. Netflix also supports decks from Panasonic, Insignia, and Seagate, and a number of Android and Apple mobile devices including the iPad. Though Netflix has faced some challenges in previous years because of changes it made to its pricing strategy. Netflix has ...view middle of the document...
Some of the customers felt betrayed by Netflix and switched to other services such as, Hulu and Blockbuster. This being said, most of their customers stayed and went along with it. Though they lost some customers during this time, it was just a short-term situation. People being frustrated with their cable and satellite companies have begun to cut their ties with them and go strictly with online content.
By performing a SWOT analysis, I was able to analyze their Strengths, Weaknesses, Opportunities, and Threats. These strengths are that they supply their services via internet so that makes the customer base huge and since the made their services also available on gadgets and phones that makes the user base even larger. Some weaknesses are that they don't have a store that people can actually go to, this means costumers who can’t afford internet miss out on their services. They still have opportunities, they can open actual stores or even just vending machines like Redbox, for people who don't have internet, which will for sure make their customer base even larger. Since a lot of people will also be urged to actually rent when it’s right there in front of them like the Redbox next to a lot of the stores. There are also opportunities for them to grow their online and streaming content. With all the opportunities they have, they have there are still many threats, like their competitors growing number of titles offered in their libraries. There are some competitors with easier ways of renting content.
I would say the best way for Netflix to grow a business is by actually start opening stores or vending machines that can make it possible for people who don't have internet to pay for their services. Also continue to grow their content library, especially their Netflix Original series and Movies.