1. Proprietary technology.
Netflix has proprietary technology system to stream TV shows and movies and also including processing delivery and return DVDs. This specific system makes the business in Netflix more efficiency. 2. Goodwill and brand value.
Netflix is a company with reputation. It has 15 years experiences and has a good deal of loyal consumers. 3. Competitive price.
The service is in expensive in Netflix. It just cost 8 dollar per month and subscribers can enjoy unlimited viewing. 4. Simple service process.
The service process in Netflix is simple. There are no commercials, no commitments, no contracts which can save consumer’s time and make the service more efficiency. 5. Open-minded managers.
They continuously receive feedback from their consumers to change their strategy which makes the company more profitable and prevent many risks. 6. Good user experience.
With just a little bit of timing, customers can have movies coming and going so as to almost always have a movie ready to watch. Which generating loyal and enthusiastic customers.
1. Third-party logistics or third-party device.
Netflix have to rely on third-party logistics or third-party device, which mean if consumers lose confident with US mail system or some devices company, it will have bad effect on the reputation of Netflix. 2. Laws and government regulations.
As an industry rely on internet, Netflix has to keep continual attention to laws and government regulations and make a quick reaction if something changed. 3. Pricing power.
It has to accept the rates and delivery schedules set by the U.S. postal service, as well as the rates set by streaming providers. 4. Weak of internet system.
As the main service of Netflix is completed on internet, there has the chance that the system to be attacked by hacker and it will bring tremendous negative effect on Netflix. 5. Debts.