Swot Analysis of Netflix

1128 words 5 pages
SWOT analysis for Netflix:
Strengths:
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
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3. The liability for negligence, copyright or patent. Face the potential liability for content uploaded from their users. Netflix have the possible to be litigation if their consumers upload some videos illegal, which will cost Netflix a lot and will have negative results of their operation work. 4. The Copyright law change.
If U.S. Copyright law were altered to amend or eliminate the First Sale Doctrine or if studios were to release or distribute titles on DVD in a manner that attempts to circumvent or limit the effects of the First Sale Doctrine, their business could be adversely affected. 5. Increasingly cost of their acquisition of DVD content and the logistic company.
They are unable to negotiate with the studios because of consumers have lists and they have to buy the movies on the list. As labors cost more and more expensive the delivery DVDs cost is increasing.

Risk 1. If Netflix efforts to attract and retain subscribers are not successful, their business will be adversely affected. 2. If Netflix unable to successfully or profitably compete with current and new competitors, programs and technologies, their business will be adversely affected, and they may not be able to increase or maintain market share, revenues or profitability. 3. If Netflix are unable to continue to recover from the negative consumer reaction to their price change and other announcements made during the third quarter of 2011, their business will

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