Researched Netflix's existing market and recommended strategies for them to develop.
Conducted SWOT analysis, product and market analysis
Based on their market growth ad financial overview, developed marketing strategies
Developed BCG Matrix and understood Porter 5 forces to estimate the competitive strategy
Netflix - Introduction
● Founded in 1997
● Headquartered in Los Gatos, California
● Offered DVD Home Delivery via snail mail
● 2001 announced intention to create a VOD
● By the second quarter of 2014, there were
more than 50 million subscribers globally
● Becoming the best global entertainment distribution
● Licensing entertainment content around the world
● Creating markets that are accessible to filmmakers
● Helping content creators around the world to find a
“Our appeal and success are built on providing
the most expansive selection of DVDs; an easy
way to choose movies; and fast, free delivery”
Netflix Advertising Expenditures
As you can see, the majority of Netflix's advertising budget is
dedicated to TV advertising. They fed that if the potential
customer is already sitting in front of the TV, streaming movies
through TV is something they would interest them.
● Values are what we Value
● We are like a pro sports team
● Freedom & Responsibility
● Context, not Control
● Pay Top of Market
● Promotions & Development
● Big Data
o used to gather and analyze information for creation
of original content
● Netflix Open Source Software Center (OSS)
o repositories full of various cloud managing software
o powered through github
● Orientation of values
● Focus on personalized recommendations
● Create more original content
● Expand and grow to international markets
● Maintain good connections with ISPs
● DVD-by-mail service
● Streaming through 3rd party devices
○ PS4, Wii, Xbox
● Streaming Services
Porter Five Industry Forces
Threat of New Entry
- well established brand
- some expense to enter industry
- experience needed
Overall: moderately low threat
- large number of competing
- moderate customer loyalty
- quick industry growth
Overall: high threat
Threat of Substitution
- very easy to find an alternative product
- moderate number of buyers
Overall: moderate threat
- moderate cost to switch suppliers
- moderate number of suppliers
- able to change and substitute
Overall: moderate threat
- many different customers
- diversified customer base
Overall: low threat
• Internet streaming media in more than 40
countries and continents like North America,
South America(Except Cuba), Denmark,
Ireland, Netherlands, Norway, Sweden, UK,
France, Switzerland, Austria, Belgium,
• More than 50M worldwide subscribers
• Limited offer with low cost and low risk
• Collect extensive data about what people
like, structure programming and investment
around consumer behavior
• Time consuming process with lower profits
• Launched in Canada in 2010
• Started expanding in Latin American
territories with content in English, Spanish
• Plans of expansion in South East Asia, India
• Expansion needs scalability of database and
• Cultural Exception Law in France
• Competitors worldwide: Germany has free TV
channels, Amazon Prime, HBO Online, Filmo TV
• Payment Systems for customers in Latin America
• Slower than expected subscriber growth in Europe
• DVD by Mail, Partnering with DVD
manufacturers in 1997
• Stepping into Streaming in 2007
• Online Streaming, Application on consoles, Set top boxes
• Profiles for users
• Original Content
• House of Cards: Viewership surged 8 times
on the release of second season
• Orange is the New Black
• Marco Polo(Upcoming)
Future- 5 Year Projection
Look at the bigger picture
• Further Expansion: Probably in Spain and
• Cable Network: Lowers risk on being only
• Delivering 4K over the net
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