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Executive Summary

Netflix is an American entertainment company, founded on August 29th in 1997, Scotts Valley,
California by Reed Hastings and Marc Randolph. This global firm worth $289.09 billion provides high
quality streaming media to 214 million paid members in over 190 countries. The individuals who
have a paid membership have full access to enjoyable TV shows, films, documentaries with internet
access over a wide range of genres and languages, to watch whenever and whereever on any device.
To ensure that Netflix maintains their objective of their market lead against competition and to
establish a primary entertainment choice for media consumers, they must continue to diversify their
client base by cultivating long-term relationships with content providers, securing more long-term
content distribution methods, disintermediating their content supply by producing more original
content, and utilising marketing strategies to investigate new sources of original content and
upcoming media device releases. This business report analyses these points by establishing the
strengths, weaknesses, opportunities, and threats as well as Netflix's 4Ps (Place, Product, Price and
Promotion) and target market research reveals a strong core competency in information systems
and technology innovation and execution, and the company may greatly benefit from an end-to-end
content monitoring system that meets several key success metrics. Finally, an examination of
Netflix's marketing strategies to overcome weaknesses and threats, which can aid in the prevention
of piracy and the protection of user data.
SWOT analysis

Strengths
1. Adaptability - Netflix has the ability to be utilised on any device as well as customers
have the option of caching content in both regular and high quality. While there are
certain restrictions on what you can download, Netflix is attempting to improve this.
Viewers can use this tool to save videos and watch them later, even if they don't
have access to the internet.

2. Global customer base - Netflix has 214 million paying members, making it one of the
most popular streaming service providers. It is currently available in over 190
countries and is widely regarded as one of the most popular streaming platforms on
the planet. It provides clients with a streaming service that allows them to watch
movies, documentaries, and original programmes without commercial interruptions.

3. Originality - Netflix began creating its own original content, a daring and costly
venture. Many of the most critically praised and popular new programmes, such as
"House of Cards", "The Crown," and "Orange Is the New Black", launched on Netflix
rather than on established networks. Original content has been a crucial source of
Netflix's success and stock price appreciation through cultivating a devoted and
loyal fan base.

4. Rational pricing - Its price strategy offers it a significant advantage over its
competitors. Netflix's new subscription plans are both affordable and accessible to
the general population. Subscribers pay a nominal price of $10.99 Australian dollars
to have unlimited access to movies and tv series.

5. High brand equity - Netflix's rise to the number one fastest-growing brand is the
result of the streaming service's efforts to stand out with high-quality, popular
original programming that continues to resonate with consumers. Netflix is the
fastest-growing brand in the United States in 2019, with a brand value of $21.2
billion, up 105% from the previous year.
Weaknesses
1. Rising inflation - as competition increases most businesses have the urge to increase there
prices to attain high cash inflow however Netflix could possibly decrease in number of
subscriptions since individuals are not willing to pay a further amount.

2. Over dependence on certain nations - Netflix is a worldwide business, yet it is more focused
on the North American market than any other. Their services to the North American market,
which generates around $20.15 billion in revenue, account for about half of their overall
3. revenue. This over dependence could be the source of a lot of their problems in the future.

4. Imitable business model - Netflix has a replicable business model, which is a strategic
internal issue that disadvantages the company. Competitors may, for example, use the same
business model to build an on-demand internet video streaming network.

5. Lack of popular films - A number of classic or older films have been removed from Netflix's
movie archive as the company has focused on developing more original material. The
amount of money spent on production simply does not allow Netflix to obtain licencing for
classic films, especially given the company's mounting debt over time.

6. Limited copyrights - Netflix does not own the majority of video rights will have a detrimental
impact on the company. Other studios' rights lapse in a few years, and the content begins
to appear on other platforms.

Opportunities
1. New content providers - As streaming grows in popularity, more producers are willing to
offer their own content to other service companies. Disney recently signed licencing
arrangements with Netflix, allowing them to stream their content. Having licencing
arrangements with high demand content producers can assist Netflix stand out from their
competition

2. Mobile streaming facility - Netflix has made their streaming much more efficient as they
created an app on your mobile device which has the ability to sync to select TVs and
streaming media players, allowing you to control your Netflix experience from your phone or
tablet.

3. Niche marketing - Netflix has used niche marketing to great opportunities, creating original
entertainment that its core audience could readily relate to and become enthusiastic about
for example the launch of "Orange is the New Black" which is a series that cannot be found
anywhere else on television or the internet. Reduced competition, higher visibility, improved
audience interactions, and increased sharing within groups are all benefits and
opportunities of Netflix's niche marketing.

4. Personal Advertisement - In order to attract new people to Netflix, the company uses email
as part of its marketing plan. Then, based on their choices, Netflix divides viewers into
groups and gives individualised product recommendations and pertinent updates.
 5. Penetration in new markets - Netflix uses algorithms to figure out what each individual user
enjoys. On a bigger scale, same notion may be used to figure out what a whole region or
nation enjoys, and the multi-faceted technology is capable of doing so. As a result, data
insights and analysis, as well as action based on them, are driving the urge to develop more
original content that is infused with local culture and languages in order to gain a larger
proportion of subscribers in new markets.

Threats
1. Growing Competition - Netflix has several competitors in the entertainment field.
Competitors and related business imitation are a strong threat. In the entertainment
industry, Netflix is up against a lot of competition. Its current major competitors are Disney+,
Apple TV+, Hulu, YouTube, Amazon, and HBO. These businesses are always coming up with
fresh concepts that threaten Netflix's dominance.

2. Cybercrime - through the advancements of technology many people broken the ethical
barriers by committing online crimes, therefore being a threat for Netflix. Some of the
crimes committed include, Fake Netflix emails which have been circulating claiming there are
issues with users’ accounts, telling users to update their payment information.

3. Content piracy - piracy is a major threat to all paid streaming services especially Netflix.
Piracy is the action of downloading content illegally for free instead of purchasing the
subscription.

4. Government regulations - Government regulations are becoming increasingly strict on

internet businesses as time goes on. When streaming services expand into international
regions, they confront new regulatory restrictions. Every nation has its own set of licencing,
streaming, tax, and privacy rules, which can be difficult to navigate.

5. Rapid Technology Advances - While technological advancements might be considered as an

opportunity for Netflix, they can equally be perceived as a major threat. Technology
advancements are making it easier for competitors to copy Netflix's product at similar rates.
Target Market

Netflix uses behavioural segmentation to analyse and categorize its 214 million consumers into
different segments. This segmentation allows Netflix to offer a more effective and customized
content to its subscribers and further enhances their experiences. In regards to genres Netflix relies
on machine learning to learn about consumers via the behaviour on the tv streaming app. By using
an algorithm to identify patterns in consumer behaviour it collects data on its user genre preferences
based on the programs they watch and then uses this data to deliver personalized
recommendations. Netflix also provides options for users to like or dislike the programs, this way can
attain more accurate information and develop better recommendations for its subscribers.
Additionally, Netflix also provides seasonal programs especially near the holiday seasons to optimise
its user engagement. Netflix ensures its consumer satisfaction through its personalised
recommendations. Customers are often more loyal to a brand that offers unique products especially
ones that are customized just for them. Not only does it provide a sense of exclusiveness it also
allows for deeper and more meaningful customer relationships. In regards to occasion and timing,
Netflix analyses the timing to which consumers stream from its service, understanding occasion and
timing at which different user stream shows helps Netflix identify lifestyles of its users and better
enhances its marketing strategy. Drawing upon the consumer consumption history, Netflix is able to
anticipate, suggest and encourage future subscriptions. To keep up with all its consumers, Netflix
provides 24/7 quality entertainment making it accessible to all consumers all the time. Netflix keeps
their consumers engaged through providing a 24/7 streaming service, consumers tend to favour
brands that understand their needs and prefer brands that they can relate to this increases
customer attention and brand loyalty.
4Ps

Price
Price is the amount a customer is willing to pay for a tangible or intangible good. Segments, ability to
pay, market conditions, competitor actions and input costs are all factors that go into Netflix's
pricing strategy. Netflix offers their users a one month free trial in order to attract them and
subsequently convert them into paying subscribers of either the monthly Basic, Standard or
Premium plans which are available between $10 to $20. Since a big percentage of users are in Asian
and third-world nations, they tend to demand cheaper rates, this pricing model satisfies the needs of
the majority of customer categories. This value based pricing is also evident in other businesses such
as Woolworths and Coles therefore making Netflix successful unlike other streaming platforms
including Amazon prime and Hulu which have lost billions in revenue due to the use of cost based
pricing.

Product
The process of bringing a product to market is known as product marketing. This includes
determining the product's positioning and advertising, introducing it, and ensuring that salespeople
and customers are aware of it. Netflix's marketing aims to increase its product demand and
utilisation of their streaming subscriptions by offering an extensive list of programmes such as
features films, TV shows, documentaries, Netflix originals and many more. To keep their audience
attached to their service, Netflix ensures its keeps on updating its platform with the latest content
and offers a diverse choice of content in multiple languages and genres, including some of the most
popular shows such as Money Heist. In the global market, a big number of original movies and series
are extremely popular and in high demand. Money Heist, Stranger Things etc. are in high demand,
and their popularity is only growing. Netflix has maintained its commitment to original
programming. Rather of franchising content created by others, the company focused on producing
its own content, which included a number of well known films, television episodes, and
documentaries. On the positive note, original content made it distinctive from their competitors, but
it also helped it gain traction with new customer segments faster.

Promotion
Netflix utilises to attain high success is promotion, which is to spread brand awareness. The company
primarily employs digital media for promotions and consumer involvement. For promotions and
interaction, the company mainly relies on social media. It uses Facebook, YouTube, and Twitter to
promote its products and communicate with customers all around the world. During the last three
years, its marketing costs have skyrocketed. The firm's marketing expenses have climbed from $1.44
billion in 2017 to $2.65 billion in 2019. As a provider of online streaming services. Netflix has a
significantly better level of brand recognition than any of its streaming service competitors.
Furthermore, the company's continuing focus on customer experience, technological innovation,
and original content has resulted in increased consumer loyalty and a positive reputation. By
investing in high-quality content, the organisation has continued to build its reputation and brand
image.

Place
In the marketing mix place refers to the location the product or service is sold. This strategy outlines
how Netflix gain market share and consumer purchases through their technology advancements as
their platform is an online streaming business which is accessible virtually wherever and at any time.
It is available in nearly 190 countries, with the exception of a few nations and territories where the
service is not available owing to US government limitations on American corporations, such as
Crimea, North Korea, and Syria. Furthermore their content is accessible on Smart TVs, tablets,
smartphones and even gaming consoles as long as subscribers have internet access either to stream
or download.

3 marketing strategies to overcome weakness/threat

For Netflix to overcome their weaknesses and threats which impact their business, they have agile
marketing approaches towards brand development and customer relationship management, which
is achieved through the adoption of recent technology.

Netflix utilises multi-channel marketing to ensure that the threat of arising competition would
slowly ease. They did this by advertising their originals on several channels such as Snapchat,
Twitter, YouTube to guarantee maximum audience engagement. This strategy also gains insight
about the buying habits of customers, which can then help Netflix to draw possible future customers
away from other streaming platforms and sustain high demand for their own products.

The weakness of Netflix having a lack of popular films on their platform can be overcame by
personalization of content which allows their customers to be suggested and categorised into
film/TV show genres and types their prefer. This gives customers an opportunity to explore new
content based on their preference.

For Netflix to understand and overcome the impact of rising inflation they must use the marketing
strategy of reprioritize customer loyalty initiatives. During the state of inflation customer loyalty
becomes an essential aspect to this streaming service. As prices increase, Netflix’s existing customers
will be tempted to move over to lower priced alternatives therefore meaning that Netflix must
create and distribute value added incentives to customers that then encourage them to remain with
their brand, even when inflation occurs.
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