Where we want to be. . .
Be present in as many countries as possible, increase subscription number and
have the largest market share, make profits from our international markets.
Situation analysis
Economical, social cultural, technological, political and legal factors
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Technological factors
• The fact that they do not have their own web
services
• Expenses that they have to incur to keep up the
tech changes
• New innovation might put them out of business
ex. Now DVD by mail product line is on decline
Political
They have a PAC(Political action committee) for
lobbying purposes eg.
The Network Neutrality issue
Video Privacy Protection Act (VPPA)
Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Strengths
largest Streaming library
Production of original content
Strong Brand Recognition
Weaknesses
Does not have latest content
Opportunities
Product Line Expansion of original
shows
More expansion in International
market.
the live sports, and online games
Threats
Network Neutrality Principal issue
web services from Amazon (a
competitor)
Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Close competitors Amazon, Hulu and others are Red-box Instant, X-finity
Stream-Pix, I-Tunes, Love-Film, and cable TV companies.
Netflix
Hulu
Amazon
Market share
67%
10%
2%
Price per month
$ 7.99
$7.99
$6.77
Strengths
Largest library strong
brand, recommender
system
original production of
shows
offers Netflix for kids,
social media
integration
Latest movie selection Cheaper of the three
A free shipping offer
Weaknesses
No latest movies
No large library
selection
Still use commercials
1 Year commitment
Some titles are paid
per click
Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Netflix target a mass market of
consumer-paid streaming
subscription of TV shows and movies
Why?
The higher the number of paying
subscribers the more Netflix can
achieve return on heavy investment in
content and technology because only
low prices can be charged due to the
nature of the industry and service.
Situation analysis
Economical, social cultural, technological, political and legal factors
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Netflix target a mass market of
consumer-paid streaming
subscription of TV shows and
movies
Strengths
largest Streaming library
Production of original content
Strong Brand Recognition
Weaknesses
Does not have latest content
Opportunities
Product Line Expansion of original
shows
More expansion in International
market.
the live sports, and online games
Threats
Network Neutrality Principal issue
web services from Amazon (a
competitor)
Amazon, Hulu, Red-box Instant, X-finity Stream-Pix, I-Tunes, LoveFilm, and cable TV companies.
Implementation time table year 2014
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Get recent movies and expand library, be more adaptive of internet speeds for customers, continue the free month trial
membership, banner advertising
(partnerships ISP, content providers, gaming companies), Adding features to the website and Netflix apps
Start a sports section within the library
Add new payment methods for international customers
text Adverts through gadgets like smartphones and tablets once every two months
awareness TV commercials
new features sports& payment forms TV commercials
QR codes
Sundance festival, and other
European festivals
Customer service improvements
Emmy
awards
By implementing these marketing
strategies we hope we will secure
our top position in the industry and
through increasing the reach of
the instant streaming message,
eventually every home will have a
Netflix subscription. Netflix will
not only be a choice but the choice
for everyone.