Swot Analysis of Netflix.Docx

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SWOT analysis of Netflix

* Good user experience
Netflix is first provider of delivered DVDs by mail that became common way and convenience for customer. Netflix offers DVDs to customers with quick delivery, which is mostly within one day (Willy Shih, Stephen Kaufman & David Spinola, 2007). In addition, customers utilize good recommendation system provided by Netflix (Scoot Merrill, 2009). Besides, customers are able to be given good customer service support (Katie Hafner, 2009). * Watch instantly streaming service

Netflix provide streaming service with monthly plan that is only provided by Netflix. Customers can watch movies on demand through several electronic devices such as Play station 3, Xbox 360, coming up to Wii, and etc… In the future, streaming service would become major service for rental “movies” (John P. Falcone, 2009). * Reasonable monthly plan and no delay fees

Netflix offers several monthly plans that the best plan is $8.99 with one DVD at a time and streaming service (Netflix, 2009). Customers can keep DVD as long as they want because Netflix never give any late fee. Therefore, customers choose one of the monthly plans depending on how often they watch movies and these monthly plan is more reasonable than the subscription for cable movies. * Recognized brand name

Netflix is the largest online DVD rental company with the brand name which connects with marketing to develop suitable strategy in online rental market. (Netflix, 2009) * Stable relationship with large studios

Netflix uses revenue-sharing agreement to keep the relationship with main studios and gets more copiers as an advantage of fitting their price model.


* Dependent on suppliers
Netflix always relies on suppliers such as movie studios and UPUS. Netflix provides movies but they are under the movie studios. The time when many kinds of movies are available is depending on the studios. Also, Netflix needs to rely on USPS for...
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