STEEPLE ANALYSIS OF NETFLIX

By Anish DP1 B
Social
● The splendid work environment works in favor of the company.
● Netflix and its CEO are known for their generous nature, and their kind gestures have touched people. Not only do
they allocate 2% of their annual income to the black community, but they also support students with low family
incomes.
● The flexibility has benefited the company. With the latest trend of watching the live stream on mobile, Netflix has
made it possible.
● Overall Netflix provides back to the community a fair share of what they make a year, for improving social status
and relations with and amongst the customer clientele.

Technology

● In Netflix, one can expect high-quality video with minimal data being spent. It is one of the many advantages of the
company.
● The continuously changing algorithms often confuse the users. The best example of this is the content rating
system.
● Hermes, the automatic translating software, is quite popular with Netflix users.
● Netflix also uses AWS, for computing and storage needs, including databases, analytics, recommendation engines,
video transcoding, and more—hundreds of functions that in total use more than 100,000 server instances on AWS.
Economic
● The fluctuating exchange rate affects its economy when buying others’ content. However, Netflix can profit from its
original content like movies and TV shows.
● The loyal customers of Netflix complain about a steady hike in the subscription price. High-quality content can be the
solution to satisfy the viewers to make them realize the content is money’s worth.
● Increased competition in the streaming services poses a threat to Netflix with the uprising of a powerful rival with
high-quality content.
● Content piracy is a massive threat to the security of the company. It affects profitability.

Environmental
● The company’s recent investment in joining hands with EPA showcases its willingness to shift to renewable energy.
Well, this increased environmental awareness may lead to growth.
● Other steps towards a sustainable future include reduced use of papers in the office.
● The media company operates almost online and leaves no direct environmental impact. However, its electricity
consumption is quite heavy
● They personally as a company don’t show any negative impacts on the environment.
Political
● For Netflix, censorship has proven to be an issue. Due to its content, it has been prohibited in some of the
biggest economies like China.
● Due to the government rules and policies, the entire content of Netflix is not available in all countries and its
viewers. Due to this, Netflix faces considerable loss.
● Restricted access does not allow Netflix to operate in many countries. Even if the brand agrees, the
government norms do not allow it.
Legal
● The sudden hike in subscription prices led the company to have a conflict with its customers. Some
dissatisfied customers even filed class-action against the company.
● The continuous copyright claim drives Netflix to face issues with a small segment of its customers. Instead

Ethical
of blocking users from other countries, the company must come up with a suitable strategy.

● Netflix Parties are expected to act and perform their duties ethically and honestly and with the utmost integrity.
Honest conduct is considered to be conduct that is free from fraud or deception. Ethical conduct is considered to be
conduct conforming to accepted professional standards of conduct. Ethical conduct includes the ethical handling of
actual or apparent conflicts of interest between personal and professional relationships as discussed in below.