Internal Changes in Netflix Services Before and After 2011 SWOT Analysis

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Case Study Assignment – Netflix
SWOT Analysis – 2011
Strengths
One of the most notable strengths depicted by Netflix before 2011 is its tremendous growth. The company doubled its subscribers’ number annually from 2001 up until 2004. The company founder and CEO, Reed Hastings, portrays himself as a visionary leader, able to anticipate the future more positively. The business model adopted by Netflix in the early 2000s was one with low costs for its subscribers, further adding to the list of the company’s strengths. International expansion also qualifies as one of the company’s strengths as it signifies an expanded customer base that has consequently increased its revenue. In 2010, the company had registered its presence in Canada, Latin America, and the Caribbean. Securing partnerships with reputable companies in the tech space also offered the company some strengths.
Weaknesses
Netflix CEO and founder Reed Hastings appeared to have made the most important decision in a rather rushed and inconsiderate manner. The decision to separate DVD and video streaming business rendered some of the company’s content redundant. It also portrayed the company as less customer-centered.
Opportunities
By the time Netflix split its business into physical DVD renting and video streaming services, the technology to facilitate video streaming was fairly niche. Moreover, Netflix’s main competitor in video streaming service, Blockbuster, had a rocky start, presenting Netflix with an opportunity to take the market by storm.
Threats
Fierce competition from other exciting companies in the industry proved to be a major threat to Netflix both in the mail in DVD sharing and video streaming. The economic crisis of 2008 also proved to be a major threat to most upcoming corporations of the time, including Netflix. Drastic changes initiated by the company CEO were a major threat to the growth and customer base of the company. Illegal file-sharing systems threatened all legitimate video streaming companies.
SWOT Analysis - 2021
Strengths
The company has its presence in over 190 countries and over 209 million subscribers, implying that it has tremendous revenue streams (Netflix). Netflix has also grown to be a reputable brand in the video stream industry. Its ability to blend in with the emerging technologies of the contemporary era has made it the best in the business. In addition, the monthly subscription for video streaming services, at roughly $9 for a basic, $14 for standard, and $16 for premium services, makes it more affordable than offers from the competitors (Buchi par. 3).
Weaknesses
The technology and most of the content that Netflix relies on for its business are mostly owned by others, making it hard for Netflix to have copyrights and patents. Netflix is yet to put in place strategies that will portray the company as a sustainability enthusiast. Close to 50 percent of Netflix revenues come from the North American market despite its presence globally, and the company may risk stunted growth due to market saturation (Blake). Netflix offers limited pricing options; basic, standard, and premium (Buchi par. 3). This can be a...