This document analyzes the strategy of Netflix using various frameworks. It provides an overview of Netflix, including its founding in 1997 as a DVD rental service and transition to an online streaming platform. A PEST analysis identifies political, economic, social and technological factors. A five forces analysis examines the intensity of rivalry, threat of new entrants, bargaining powers of suppliers and customers, and threat of substitutes. A SWOT analysis outlines Netflix's strengths, weaknesses, opportunities, and threats. The document also includes a market analysis and identifies problems around high competition and recommendations around content creation and live sports streaming.

1. STRATEGY ANALYSIS
OF NETFLIX
Presented by:
Abhishek Sao
PGDIM-22
1502008

2. Content
 About NETFLIX
 PEST analysis
 Five forces analysis
 SWOT Analysis
 Market Analysis
 Problems & Strategy

3. About NETFLIX
Company Profile
 Founded in 1997
 Operated as a flat rate DVD rental via
shipping my mail
 Used data mining to identify customer
needs and provide suggestions based
on customer sales data
 Transitioned successfully to online
streaming platform
 Currently serving more than 45 million
subscribers with more than 1 billion
hours of content per month
Mission & Vision
 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

4. About NETFLIX

5. PEST Analysis
Political
• Piracy laws
• Content licenses and
copyrights
Economical
• Increase in disposable income
• People spending more on
entertainment
• Subscription fees similar to
cable/Dish services
Social
• Television watching is a social
phenomenon
• Netflix suitable more for
personal viewing
• Web series gaining popularity
Technological
• VOD demand increasing
• Requires high internet speed
• Smart TVs not available
everywhere
• App can be accessible

6. Five Forces Analysis
Intensity of Rivalry:
• HIGH rivalry
• Major players like
HBO, Amazon, Cable
TV
• Low entry barriers
Threat of New Entrants:
• HIGH
• Major players like
Apple, Youtube,
TVFplay, Hotstar
Bargaining power of
suppliers:
• HIGH (Content
generated by entire
entertainment
industry)
Threat of Substitutes:
• HIGH
• Apple TV, TV cable
Bargaining power of
customers:
• HIGH (Lot of choices
for substitutes)

7. SWOT Analysis
STRENGTHS
• Data of customer
interests, preferences
and choices
• Experience of 20 years
• Large number of diverse
shows and Movies
THREATS
• Competitive markets
• Price competitiveness in
the market
• Technology penetration
is a challenge
WEAKNESSES
• High fixed cost
• High debt
• System not much
flexible for diverse users
OPPORTUNITIES
• Entry into new markets
like Europe
• Expansion in India
• Producing and creating
more original content

8. Market Analysis
• High Popularity of NETFLIX Original
shows in The Emmys
• The only major streaming platform
in the list of nominations
Sports events cover the largest
share of watched live events on
TV

9. Market Analysis
High share of Netflix among video
streaming alternatives
Netflix has the highest subscription
base in the US

10. Problems & Strategy
Problems Identified Recommended strategy
High threat of
entrants (YouTube,
TVFPlay, Apple TV)
High bargaining power
of suppliers(content)
and
customers(substitutes
)
High technological
requirements (High
speed Internet)
High threat of
substitute
(Cable/Dish TV)
Market penetration
by more services and
low cost
Continue with the high
availability distribution
strategy
Collaborate with
partners to provide
hardware support on
devices
Creating own content
to gain competitive
advantage
Addition of live
streaming of sports
events to fight
competition

11. THANK YOU