Content

Company profile
PEST analysis
Five forces analysis
Value chain
Canvas model
Core problem
Differentiation matrix
Canvas model +5
Strategy

No mission and vision!

Statement
Becoming the best global entertainment
distribution service
Licensing entertainment content around the
world
Creating markets that are accessible to film
makers
Helping content creators around the world
to find a global audience

Company profile
Founded in 1997
Flat rate DVD by mail
Data mining
Successful transition to streaming content
>40M members, > 1 billion hours of TV Shows and movies per month

PEST analysis
Political

Social

Piracy

Wish to watch on tv screen, applicable

Content licenses and copyright

everywhere

Economical

Technological

Unlimited market size

VOD increased popularity, Need for high

Technology applicable for all countries

internet speed

Five forces analysis

Threat of new entrants high (Apple, Amazon, Hulu, Youtube)
Threat of substitutes high (Apple TV, Hulu)

Bargaining power of customers high (a lot of choice for substitutes)

Bargaining power of suppliers high (content is key)
Intensity of rivalry high (HBO, low entry barriers, major players present)
Complementors high (Microsoft, Wall-Mart, Roku, Vizio, LG)

Market Life Cycle

Value chain Model

Canvas Model

SWOT analysis
Strenghts Data, experience, # shows and movies
Weaknesses Fixed costs, high debt, system not flexible
Opportunities Europe, NEM, original content

Threats changing technology, rising prices, competitive markets

Confrontation matrix
SWOT

Europe

NEM

Content

Data

++

Exp.

++

++

Fixed

Tech

Prices

Markets

++

++

++

++

++

++

++

--

Debt

--

--

--

System

--

--

Core problem
Threat of all five forces is high

Power of suppliers and buyers is especially high

Netflix is stuck between powers

Canvas Model +5

Strategy
Pursue market penetration strategy by excellent service and low prices
Focus on creating its own content to maintain competitive advantage

Increase its innovation budget by 5% next year and continue to do so

Use pricing as a last resort measure to increase margin
Choose to stream content only, milk its mailing DVDs within the next 5 years

Create more partnerships to create perfect hardware platform for its software
Continue its high availability distribution strategy