SWOT_Analysis__final_prooject

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SWOT Analysis (Netflix) DAVID AWODI IFSM 201 JULY 12, 2022 The SWOT Analysis stands for Strength, Weakness, Opportunity, and Threat. It is a table that helps you identify your businesses or organization’s strengths and

weaknesses internally, as well as external opportunities and threats. This method was developed originally for business and industries, but it can be useful for education or personal growth. I decided to go with Netflix because it is a technology-based application, that I know is worldwide and international. I have been a member of Netflix for a while and I have seen it grow by creating original content, allowing DVD purchases, and being incorporated into some televisions. INTERNAL EXTERNAL STRENGTHS WEAKNESSES OPPORTUNITIES THREATS • Internationally Customer Base • Customer Centric Service • Original Movies/TV shows • Dependent on Internet • Increasing Prices of subscriptions • Limited Copyrights • Bundle with Providers • Supporting Black Educational Institutions • Several other streaming service • Account Hackings • Piracy In the strengths category on the SWOT table, we have the international customer base, customer-centric service, & original movies/tv shows. Having an international customer base is one of the greatest strengths, a streaming service can have. Netflix is being provided to 190+ countries around the world, and over 167 million subscribers so when you have that much of a strong base it allows Netflix to have more leverage when it comes to dealing with studios for exclusive content. Now no one likes when they can’t 2

watch tv or without Wi-Fi, what if I was on a plane and wanted to finish a series and that’s where is improving. They now have options where you can download your tv shows and movies when you’re on Wi-Fi. That way when you’re traveling and don’t have an internet connection you can watch your entertainment on the go. The last strength is how supportive Netflix is in allowing starter filmmakers in creating original content. It allows the filmmaker to gain experience, but also lately Netflix has been making money from their original content. So, if Netflix can allow young filmmakers to get experience while bringing in money off their content it’s a win-win. Some of Netflix’s weaknesses are its dependence on the internet connection, its price increase, and limited copyrights. Internet dependency can be a real pain when it comes to any streaming service. As I discussed before in the strength category, yes Netflix allows you to download some of your shows/movies but some of their content isn’t available for download. One way to lose subscribers is by increasing your price with no new options. Netflix only has 3 packages you can buy: Basic, Standard, and Premium. All the plans are the same only difference is the basic plan doesn’t have HD or Ultra HD, the standard has HD but not Ultra, and finally, the Premium has both. Netflix’s recent price increase made all these plans go to $10, $15.50, and $20, now there is no reason a streaming service should cost this much when the only difference is the quality. You can pay Disney+ $7.99 and get everything and quality, the Hulu plan I have I pay $70 but I get live tv with no ads and regular Hulu. If you start charging these ridiculous prices and don’t add any incentives or anything different people are going to start using other streaming services. Finally, when dealing with content that isn’t exclusively yours that can be tricky because you have no rights over it. So, when the rights get taken away that content is pulled from Netflix, and they end up paying for it. 3

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They pay to stream these other companies’ movies or tv shows and that can pile up debt because of the limited copyrights. Netflix has several opportunities at hand which include they can bundle itself with telecom providers and supporting HBCU’s around the US. What a lot of streaming services are doing now, is bundling themselves with perhaps other streaming services or telecom providers. For example, Disney+ you can do a package where you can Disney+, ESPN+, and Hulu all in one bundle and save some money. With my cellphone provider, T-Mobile with 2 of their plans you can get a Netflix subscription at no extra cost. If Netflix expanded like this with other telecom providers or streaming services, they could bring in a lot of revenue especially if it’s with a top streaming service. Lastly, the fact that Netflix has over a million users, and they support HBCUs and supported African Americans during the Black Lives Matter Movement, shows that they care. The Netflix CEO donated “$40 million to Morehouse College, $40 million to Spelman College, and $40 million to the United Negro College Fund (UNCF)” (Asmelash, 2020). When it comes to HBCUs a lot of African Americans want to go to them and they are very popular however are poorly funded. A lot of companies don’t say anything because they fear the risk which could be good, bad or both. So, Reed Hastings, CEO of Netflix, and his wife Patty Quillin go and take that risk for what they believe in is worth a lot more. Lastly, when it comes to Netflix’s threats, they are kind of big ones, other streaming services, piracy, and account hackings. Netflix is getting easier to hack nowadays by cybercriminals or could be by someone you know. One of the most popular ways people are hacking into Netflix accounts is by leaving accounts open. When it comes to staying at hotels or Airbnb’s, everyone wants to be able to log into their streaming services. So, most of the time when people log in to their accounts in 4

these people’s houses or hotels and do not log out you're allowing people after their personal information. “It’s often possible to find forgotten accounts on this type of equipment, which gives the hackers access to the unsuspecting user’s email and phone number” (Gendre, 2019). They have access to all that information and sometimes more like card information. One of the main threats Netflix will always have is that other streaming services that are available. For instance, Hulu, Disney+, Paramount+, and HBO Max, are Netflix’s competition because they release better content, and their prices are more reasonable. A lot of people are getting mad with Netflix because they aren’t releasing shows or movies that are worth paying for, meanwhile, Disney+ has all the Star Wars movies and Marvel movies and shows. The last threat that is kind of old but still exists is piracy. Piracy is “illegal copying and selling of DVDs and CDs”, which is how people get bootlegged movies. However, the quality of the movies is always poorer quality, or the sound may be muffled. One of the main piracy websites is Popcorn Time, they would upload movies before they hit the theater, although you can choose what quality you want your movie. In conclusion, when it comes to Netflix, they have their work cut out for them with all these new streaming services coming out. However, they still have plenty of benefits and opportunities where they can improve and make Netflix worth the money. Netflix may not be the number 1 streaming service, but not once has it fallen to the point where no one uses it. That goes to show that they have a very secure base that allows them to still stand and rise. 5

References: Asmelash, L. (2020, June 17). Netflix CEO donates $120 million to black colleges in an effort to 'reverse generations of inequity' . CNN. Retrieved February 6, 2022, from https://www.cnn.com/2020/06/17/business/netflix-ceo-hbcus-donatetrnd/index.html Carolina, Sg, Peterson, & Gupta, S. K. (2022, January 20). Netflix SWOT analysis 2022: SWOT analysis of Netflix . Business Strategy Hub. Retrieved January 24, 2022, from https://bstrategyhub.com/swot-analysis-of-netflix-2019-netflix-swot- analysis/ Film and music piracy . nidirect. (2021, July 2). Retrieved February 6, 2022, from https://www.nidirect.gov.uk/articles/film-and-music-piracy Gendre, A. (n.d.). 3 ways cybercriminals hack into Netflix accounts . Vade. Retrieved February 5, 2022, from https://www.vadesecure.com/en/blog/3- wayscybercriminals-hack-into-netflix-accounts Netflix SWOT ANALYSIS: EdrawMax Online . Edrawsoft. (n.d.). Retrieved January 24, 2022, from https://www.edrawmax.com/article/netflix-swot-analysis.html 6

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