Internal Changes Netflix Has Made Before and After 2011

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Case Study on Netflix: Before and After 2011
Introduction
The current paper focuses on the internal changes Netflix has made, since its inception, to become a leader in its industry. In 2011, the organization that had grown steadily from the early 2000s faced significant challenges that resulted in a strategy that transformed the organization into a global leader. The current paper is outlined in two sections: SWOT Analysis, a discussion, and conclusion section.
SWOT Analysis
Netflix's internal strengths, challenges, opportunities, and threats before and after 2011 are different. These differences outline the changes that Netflix has made to become a global brand.
SWOT Analysis in 2011
STRENGTHS
* Visionary leader – Hastings foresaw the power of online streaming services and initiated plans to align Netflix.
* Strong growth projections – Raised $82 million in IPO and reached 4 million subscribers giving it a reliable market base and resources by 2011. As a result, the company was able to survive the 2011 plummeting stocks because of the resources and market base it had accumulated.
* One-day delivery postage services – provided convenience for customers.
* Variety of content – it had obscure movies that were not available at local stores.
* Partnerships – Partnered with Microsoft and Sony to enhance streaming services.
* Innovation – Netflix was able to provide a quick response the merging issues like piracy.

WEAKNESSES
* Netflix could not seek new releases from its content partners because their partners demanded pay-per-view rates. Therefore, it lacked new content while competitors like Blockbuster relied on a new release to grow. At Blockbuster, 78% of the revenue came from the rental of new release movies.
* Poor communications strategy – Netflix did not communicate fundamental changes effectively, leading to dissatisfaction.

OPPORTUNITIES
* The emergence of the DVD – In the late 1990s and early 2000s, Blockbuster was the biggest movie retailer focusing on VHS tapes. The emergence of DVDs in the mid-1990s provided an opportunity for Netflix to compete against the rigid Blockbuster.
* The emergence of online streaming – Further, online streaming services provided Netflix with a new opportunity to lead the future against the competition.

THREATS
* Competition from Blockbuster and Redbox. Redbox competed against Netflix in retailing or renting movies on DVDs. Redbox focused on high-traffic areas and had over 29000 kiosks across the country offering over 200 movies. On the other hand, Blockbuster was still the largest retailer with an established market base.
* Illegal downloads – The emergence of sharing platforms like Piratebay reduced the number of downloads on Netflix because consumers could get the movies for free.

SWOT Analysis between 2011 and 2021
STRENGTHS
* Established market base – since the transition to online streaming services, Netflix has expanded its market base to 209 million paid subscriptions annually.
* Global brand – As a result, Netflix is a global brand channel of distribution spanning over 190 countries and...