Organization & Management

FA3: SWOT and TOWS Analysis

Netflix is the world's leading streaming entertainment service with over 209 million paid memberships in
over 190 countries, enjoying TV series, documentaries, and feature films across a wide variety of genres
and languages. Members can watch as much as they want, anytime, anywhere, on any
internet-connected screen. Members can play, pause and resume watching, all without commercials or
commitments.

In groups of 4-5 members (assigned by your teacher), do the following:

1. Create a SWOT Analysis for Netflix. Perspective is today/current situation we are in. Complete
the SWOT Analysis framework below. List five (5) factors under each category. (20pts)

SWOT ANALYSIS FRAMEWORK

  STRENGTHS
Brand Equity. The name “Netflix'' has
become synonymous with content streaming.
It was the first central platform to receive
widespread acknowledgment for its type of
1 business model.
No Commercials. One of Netflix’s significant
selling marks to the consumer is its total lack
of advertisements, and Netflix has never
included commercials as part of its service.
2 appearing on other channels.
Originality. Netflix is known to produce
high-quality original content, and some of
these original contents are now quite hit with
the young generation.
3 internet infrastructure is not highly developed.
Reasonable Price. It offers unlimited movies
and TV shows on your laptop, TV, phone, or
tablet with high-quality content.
4 issues.
WEAKNESSES
Increased Price Subscription. Not only their pricing
plans are inflexible, but they are also continuously
increasing in price. Most customers were afraid that
their price was going to increase over and over
again.
Copyright issues. Netflix does not own the
copyrights of certain content; the shows that we
watch do not belong to the company. It only gets a
license from a studio to play on its platform, and
after a certain period, expired licenses cause
content to be removed on Netflix. It will start
Internet Requirement. The subscribers can only use
Netflix if only they have access to the internet. Even
now, the subscribers can download and watch series
or movies offline. Primarily the internet is needed to
download content. It could cause a specific problem
for the platform, especially in countries wherein
Lack of support. As of now, the pandemic started,
and people rely upon entertainment like Netflix.
Numerous accounts were hacked during this period,
and it is a problem for the business to reduce its
support teams and working hours. As a result, the
customers have to wait for hours to resolve their
 It has a large and growing global reach. It
operates in almost all the countries across the
globe. So, it has an enormous deal of
worldwide imprint. This makes it more
recognizable to the public and helps with its
publicity.
No environment Initiative. Tech companies put a lot
of emphasis on green initiatives. They’re planning to
utilize clean and green energy, and Netflix lacks in
this sector. The brand should adapt to eco-friendly
and sustainable options.

5
  OPPORTUNITIES THREATS
Cheap Price Streaming Option. Netflix can
propose a lower-priced choice to attract and
retain subscribers in the international
market. Netflix has been testing a more 21st Century Piracy. Because most media
affordable plan only involving mobile devices consumers cannot afford pricing subscriptions, they
in India that costs about $3 per month. This go to pirated sites.
marketing strategy will help Netflix compete
against their competitors like Disney+, Apple
1 TV, etc.
Take advantage of the Ad-Based Model –
Google, Amazon, Facebook, and numerous Fierce Market Competition. Because of its
other specialist organizations make billions in easy-to-replicate business model, movie
advertising income. Netflix can support its distributions have already invested in their
revenue by taking on a publicizing-based plan streaming platforms.
2 of action.
Extend Global Customer Base – With a
particularly immense current subscriber
base, Netflix can take advantage of numerous
nations and grow its administrations and
Steep Local Pricing. Media consumers may result in
supporters. They can begin to focus on the
more affordable local streaming platforms or even
nations where it is not yet accessible. Later,
patronizing pirated sites.
Netflix extended its tasks and included a
couple of more nations in its activity list.
Nonetheless, it is as yet inaccessible in China,
3 Crimea, North Korea, and Syria.
Chinese Constraints. Due to the ban on foreign
Refresh Content library. It can extend its
content, Netflix cannot service the billions of media
content licensing by expanding the
consumers on the mainland. Chinese distributors
agreements with different film wholesalers.
might make a similar platform that will compete
Moreover, Netflix ought to invigorate its
4 with Netflix in the region.
 content library as it is currently creating its
unique content.
Alliances. It can also partner up with various
telecom organizations and propose bundle
sets in multiple countries. Collaborations and
Original Content. Netflix has faced lawsuits for
partnerships are proven to be beneficial and
airing content that contains racial, sexual, and
profitable for Netflix. In the past, Netflix had
opinionated views.
a collaboration with Channel 4. It can create
more stable connections with local
5 broadcasters.

2. Based on your SWOT analysis, come up with four (4) recommendations/strategies through a
TOWS Analysis. One recommendation/strategy for each area (SO, ST, WO, WT). Indicate the item
number you are using (ex: S1, O2; W3, O1) (8pts)
● SO (Strengths-Opportunities):
S3, O3, O4 - Produce a massive number of original Netflix films, series, animations, and
Korean dramas to expand the company's current content library to be able to reach out
to nations that aren't currently accessible, such as China, Crimea, North Korea, and Syria.

● WO (Weaknesses-Opportunities):
W3, O5 -To expand the company's coverage and to be able to serve consumers in
locations where internet infrastructure is weak or non-existent, collaborate with other
telecom providers, and develop strong connections with local networks.

● ST (Strengths-Threats): S3, T5 - Netflix might want to reconsider some of its Original

Content and make a formal basis on topics they air. Age restrictions might also be helpful
for its users under 18. Budget spending on production for Original content has far more
cost-value than other Distributors.

● WT (Weaknesses-Threats): W4, T1 - Because of multiple stolen accounts, Netflix should

reconsider its security protocols and notify email accounts of unwanted log-ins. Content
stealing and piracy are also issues, as Netflix should heighten its firewall for unwanted
3rd-party software that trick and bypass security protocol.

Other instructions:
a. Submission: Hurtado; all members upload the same PDF File.
b. Deadline: August 23, 5 pm, Monday.
c. File Name: FA 3_Last Names (Ex: FA3_Bisnon-Cruz-Santos-Yu)

3. Groupings: