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Content
Company profile
PEST analysis
Five forces analysis
Value chain
Canvas model
Core problem
Differentiation matrix
Ca...
No mission and vision!
Statement
Becoming the best global entertainment
distribution service
Licensing entertainment conte...
Company profile
Founded in 1997
Flat rate DVD by mail
Data mining
Successful transition to streaming content
>40M members,...
PEST analysis
Political

Social

Piracy

Wish to watch on tv screen, applicable

Content licenses and copyright

everywher...
Five forces analysis
Threat of new entrants – high (Apple, Amazon, Hulu, Youtube)
Threat of substitutes – high (Apple TV, ...
Market Life Cycle
Value chain Model
Canvas Model
SWOT analysis
Strenghts – Data, experience, # shows and movies
Weaknesses – Fixed costs, high debt, system not flexible
Op...
Confrontation matrix
SWOT

Europe

NEM

Content

Data

++

+

-

Exp.

++

+

#

++

Fixed

Tech

Prices

Markets

+

o

+...
Core problem
Threat of all five forces is high

Power of suppliers and buyers is especially high
Netflix is stuck between ...
Canvas Model +5
Strategy
Pursue market penetration strategy by excellent service and low prices
Focus on creating its own content to maint...
Netflix Business Model & Strategy
Netflix Business Model & Strategy
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Netflix Business Model & Strategy Slide 1 Netflix Business Model & Strategy Slide 2 Netflix Business Model & Strategy Slide 3 Netflix Business Model & Strategy Slide 4 Netflix Business Model & Strategy Slide 5 Netflix Business Model & Strategy Slide 6 Netflix Business Model & Strategy Slide 7 Netflix Business Model & Strategy Slide 8 Netflix Business Model & Strategy Slide 9 Netflix Business Model & Strategy Slide 10 Netflix Business Model & Strategy Slide 11 Netflix Business Model & Strategy Slide 12 Netflix Business Model & Strategy Slide 13 Netflix Business Model & Strategy Slide 14 Netflix Business Model & Strategy Slide 15
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Capstone presentation on Netflix

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Netflix Business Model & Strategy

  1. 1. Content Company profile PEST analysis Five forces analysis Value chain Canvas model Core problem Differentiation matrix Canvas model +5 Strategy
  2. 2. No mission and vision! Statement Becoming the best global entertainment distribution service Licensing entertainment content around the world Creating markets that are accessible to film makers Helping content creators around the world to find a global audience
  3. 3. Company profile Founded in 1997 Flat rate DVD by mail Data mining Successful transition to streaming content >40M members, > 1 billion hours of TV Shows and movies per month
  4. 4. PEST analysis Political Social Piracy Wish to watch on tv screen, applicable Content licenses and copyright everywhere Economical Technological Unlimited market size VOD increased popularity, Need for high Technology applicable for all countries internet speed
  5. 5. Five forces analysis Threat of new entrants – high (Apple, Amazon, Hulu, Youtube) Threat of substitutes – high (Apple TV, Hulu) Bargaining power of customers – high (a lot of choice for substitutes) Bargaining power of suppliers – high (content is key) Intensity of rivalry – high (HBO, low entry barriers, major players present) Complementors – high (Microsoft, Wall-Mart, Roku, Vizio, LG)
  6. 6. Market Life Cycle
  7. 7. Value chain Model
  8. 8. Canvas Model
  9. 9. SWOT analysis Strenghts – Data, experience, # shows and movies Weaknesses – Fixed costs, high debt, system not flexible Opportunities – Europe, NEM, original content Threats – changing technology, rising prices, competitive markets
  10. 10. Confrontation matrix SWOT Europe NEM Content Data ++ + - Exp. ++ + # ++ Fixed Tech Prices Markets + o ++ - + ++ ++ ++ + ++ ++ ++ + + + -- + + Debt o o -- -- -- - System - -- o -- o -
  11. 11. Core problem Threat of all five forces is high Power of suppliers and buyers is especially high Netflix is stuck between powers
  12. 12. Canvas Model +5
  13. 13. Strategy Pursue market penetration strategy by excellent service and low prices Focus on creating its own content to maintain competitive advantage Increase its innovation budget by 5% next year and continue to do so Use pricing as a last resort measure to increase margin Choose to stream content only, milk its mailing DVD’s within the next 5 years Create more partnerships to create perfect hardware platform for its software Continue its high availability distribution strategy
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Capstone presentation on Netflix

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