Netflix SWOT Analysis Essay -- essays research papers

S.W.O.T. AnalysisStrengths ?Netflix provides a subscription-style e-commerce service. Over 95% of nodes pay at least $17.99 a month which includes unconditioned rentals with up to three titles at a metre. A comparably low periodical fee, allows Netflix to lead foodstuff share of online videodisc rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix readiness keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has fewer problems in predicting revenues. ?Netflix enjoys lower fixed cost due to the feature that it is an online DVD rental company. As an medical internet business, Netflix incurs less oerhead costs than competitors much(prenominal) as Blockbuster, as well as having fewer employees to kick the bucket the physical locations, thus labor costs are greatly reduced.?Netflix gives customers numberless inlet to the biggerst selection of DVD?s. Netflix?s video library consists of oer 45,000 titles, making their selection the worlds largest, beating out Blockbuster, Movie Gallery, and Hollywood Video.?With over 35 distribution centers across the United States, Netflix has the fastest delivery time of any online DVD rental company. Through the engagement of the United States postal Service over 90% of DVD?s are current by customers within one day of ordering.?Netflix?s easy to use website allows customers to browse the video library by category such as action, romance, drama (sixteen total categories) or by using a umbrella internal search of the library. ?Netflix uses the technology of Cinematch to give customers even better service. Cinematch studies bygone selections made by members, and begins to recommend titles that would likely be enjoyed by the customer based on previous selections.?Charging a monthly fee for unlimited rentals, Netflix eliminates due dates and late fees, as well as eliminating the long lines of a brick and mortar store.?Netflix uses their great customer service to keep customers happy which intern keeps customers from canceling there subscription to the service. If there is a problem that arises during the rental process such as a damaged DVD, or lost DVD during the shipping process, Netflix addresses the problem immediately, and never charges the customer for the problem.?Netflix was the first company to tour DVD renta... ...fering similar service, either directly or as a partnership with another organization. Emerging competition from digital cable and satellite companies that offer movies on pick up. Time Warner digital cable offers video on demand library consisting of a few hundred selections and growing. Users can purchase a movie with the touch of a button for about $4.00. Customers have access to the movie for up to 24hours. Many video on demand services are now offering technologies that allow users to pause, fast forward and rewind the movies they purchase. though the selection offered by c able companies is extremely small in equality to Netflix, it will only be a matter of time originally the number of selections will increase drastically. There are a large number of substitute products. Netflix is in the business of providing personal entertainment at an affordable cost. Since any other form of entertainment is considered a substitute, Netflix?s industry is in direct competition with all other forms of entertainment, whether it be reading, physical exercise, regular television, etc. If trends in popular culture spark away from those related to movies, revenues may be affected.