Revo Island

Netflix SWOT

Strengths

1. Well brand reputation and flexible business models
2. No commercial advertisements, to enhance the quality of consumers watching films
3. Create originality contents
4. More critically-acclaimed content and an extensive library than other OTT platforms
5. Appropriate pricing strategy - low price and can unsubscribe at any time
6. Website and mobile device APP optimization are more comprehensive, can watch on a variety of devices
7. Large and growing global customer base

Weaknesses

1. Business models are easy to copy
2. The monthly rental scheme does not apply to people who only want to see certain films
3. Original film and drama cost is higher, capital pressure is greater, increased debt and operating cost problems
4. keeps raising its prices
5. Narrow pricing strategy - only three options to choose from: basic, standard, and advanced.
6. When the copyright expires, consumers will not be able to view the film again
7. Overdependence on the North American market
8. Shortage of customer service staff

Opportunities

1. The COVID-19 outbreak
2. Alliance and Cooperation Strategy - bundle its services with telecom provider
3. The modern Internet has developed extensively
4. Niche marketing - multilingual content development
5. Launch a cheaper annual subscription service

Threats

1. Other OTT companies have also expanded during the outbreak
2. Government Regulations - different governments have different laws and regulations for films, and the review progress is slow, and some films cannot even be approved
3. Piracy - free pirated films are still rampant
4. The North American market is becoming saturated
5. Account hacking

SO Strategies (Max-Max)

S1+O1 Rapid development of a business strategy suitable for COVID-19

S3+O4 Create more albums for different markets and attract more non-North American users

S5+O5 Leverage good pricing strategies to attract regular users to buy cheaper annual subscriptions

ST Strategies (Max-Min)

S1+T1 Stabilize the existing market and gradually increase the share of the international market

S2+T3 Pirate sites usually have a lot of commercials and poor-quality films, while Netflix has good quality films and an ad-free viewing environment

S7+T4 Stabilize the customer base in North America and expand the customer base in other regions

WO Strategies (Min-Max)

W4+O2 Cooperate with telecom operators to offer special offers to customers

W5+O5 Good pricing can provide insights into consumer psychology, a cheaper annual subscription, for example, may make customers more willing to spend more money at once

W7+O1 The explosion of COVID-19 will allow Netflix to move more quickly into other markets and reduce its reliance on North America

WT Strategies (Min-Min)

W2+T1 To attract potential customers who only want to watch specific films by launching diversified programs, such as single purchase or discount combination purchase, and reduce the threat from other competitors

W8+T5 Hire more staff to serve more customers and improve website technology to reduce the risk of account theft by hackers