PROBL E M- SOLVING

AND RE SE ARCH ME
THODS FOR MANAGERS
RBLP020L086A

NAME: AKHIL PAUL | STUDENT ID:

PAU21535624
 INTRODUCTION
• Netflix operates both a streaming service and a production studio.
sed in Los Gatos,
• Reed Hastings and Marc Randolph launched Netflix in 1997 to give users access
California.
to a growing selection of films and TV shows.

• Its library of original TV shows and films, a plethora of high-caliber programs, and
user-friendly design set it apart from its rivals.

• There are several original TV series and films available on Netflix.

• More than 15,000 contents are available in different languages

 COMPANY
ANALYSIS
• It offers top-notch shows and programs with a user-friendly design, and it is
completely free of commercials.

• Netflix has a collection of original TV shows and movies.

• The platform provides a personalized viewing experience for each viewer based on
their viewing preferences, interests, and platform usage.

• Using big data, Netflix can provide every one of its 208 million users with a
customized experience that includes the material they wish to see. The films can
also be downloaded offline in addition to all of this.
 COMPANY
ANALYSIS
• In the online streaming industry for the past 10 years, Netflix is ruling the market not
only in US but world wide.

• Netflix has become well-known. With a $15.0 billion brand value,

Netflix is ranked 36th by Interbrand in 2021.

• Netflix provides services in 190 countries and more.

• It is one of the most famous streaming service globally

• It stands out from the competition thanks to its collection of original TV shows and
movies, the abundance of top-notch programming, and its user-friendly layout.
 SWOT ANALYSIS OF
NETFLIX
STRENGTH WEAKNESS
• High growth
Growing
• Brand standing
Opera tiona l Costs
• Global audience
Ra ising
• Imagination Flexibility
Prices Rigid
• Awarded Programs
Pricing
Lack of Green
Initiatives Increasing
OPPORTUNITY Debt

• Low-cost Mobile Streaming Alternative

THREAT
• Boost your global clientele Competitive Pressure
Government
• Niche Marketing
Regulations
• Introduce Annual Subscription Prices Ma rket
Sa tura tion
• Updating the content library
Account Hacking
Piracy
 SWOT ANALYSIS OF
STRENGTH NETFLIX
• High growth: In the online streaming industry for the past 10 years, Netflix is
ruling the market not only in United States but also world wide.

• Brand image: They have gained notoriety rapidly and now has $15.0 billion
brand image.

• Netflix gained notoriety quickly and has a $15.0 billion brand value at this
time.

• Global Subscriber Base: Netflix has more than 190 countries in which it
provides services to its subscribers.
 SWOT ANALYSIS OF
STRENGTH NETFLIX
• Originality: Another advantage is that they have constantly generated very high quality
content during these years.

• Its customer base has increased content during these years. As a result, the fame of
some shows including Tiger King, Stranger Things, Money Heist, and more on.

• Their capacity to adapt is seen in the speed with which it launched streaming services
for all internet-enabled devices, including laptops, iPad, smartphones, and televisions.

• It had the effect of causing their company to grow rapidly over time.

• Awarded Programs: It should come as no surprise that Netflix's original programming is

gaining popularity.
 SWOT ANALYSIS OF
NETFLIX
• WEAKNESS
Customers want more alternatives and customized pricing, not rigid
pricing. Sadly, their pricing strategy is restricted to only 3 levels, which
are basic one, standard and premium one.

• Because of this reason, there is a reduction in their customer base.

• Increased Operational Costs: Adding more content makes Netflix stand

out of their competitors, but with this, they are incurring more costs.
 SWOT ANALYSIS OF
NETFLIX
WEAKNESS

Price Increase: When other companies like

Disney, Amazon Prime, Apple TV began to
offer services, Netflix increased their
subscription charges.
 SWOT ANALYSIS OF
WEAKNESS NETFLIX
• Absence of Green Policies: Netflix has not yet created a business
strategy to encourage environmental sustainability, nor has it
used renewable energy.

• Companies like Amazon, Google, Apple, etc have started making

use of renewable energy.

• The reputation of suffers from the lack of utilization of green

energy.
 SWOT ANALYSIS OF
OPPORTUNITY NETFLIX
• Reduced cost for Mobile Watching plans: Netflix offers a cost-effective choice to retain their
customers globally.

• Netflix is providing their service at just Rs199/month for mobile subscriptions in India.

• Build Worldwide Client Base: Netflix can expand its customer and service presence in many
other countries thanks to its huge subscriber base already in place.

• They can begin focusing on the countries where it is still inaccessible.

• The number of nations in which Netflix is present has grown. Expect Syria,
North Korea, China etc.
 SWOT ANALYSIS OF
NETFLIX
OPPORTUNITY
• Niche Marketing: Offering locally specific material in the native
tongues of those regions is another important option for Netflix.

• Netflix got a huge customer base after the release of "Sacred Games"
in India and "La Casa de Papel" in Spain.

• Library updation: They can strengthen their connection with more

content distributors.

• Netflix should revive the catalog of the content that are already
available.
 SWOT ANALYSIS OF
NETFLIX
OPPORTUNITY
• Introduce a More Affordable Annual Subscription: Once the site releases
fresh streamings, customers usually sign up for just a month for Netflix
service and binge-watch all the favorite contents in a short span of time.

• Introducing an annual subscription with incentives can help Netflix to

increase their profit by converting monthly members to yearly plans.
 SWOT ANALYSIS OF
THREAT
NETFLIX
• Effects of competitors: Netflix’s competitors are increasing because
those companies are providing streaming in various nations.

• Netflix’s competitors are providing access to original and fresh content

to their customers on regular basis.

• Governmental Limitations: Service providers like Netflix are restricted by

Government in many countries.

• Netflix won’t provide their service in China, because of China’s

prohibition on foreign content.
 SWOT ANALYSIS OF
THREA
T
NETFLIX
• Market saturation: Netflix couldn’t achieve their target of 600,000 in
Q4.

• Netflix was expected to achieve a target of 218,000 customers in

Canada but gained only 125,000 customers.

• The Growth in North America was slowed down for 3 consecutive times
as a result of Market saturation.

• Future user growth for Netflix will be more difficult due to market
saturation.
 SWOT ANALYSIS OF
THREA
T
NETFLIX
Account hacking: Due to the downtime in quarter one and quarter two of
2020, resulted in an increase of daily user count but mostly it was hacked
account users only.

If account hacking is continuing, frustrated Netflix users will switch their

rival companies.

Piracy: Because of high monthly cost increase, the customers cannot afford
and they are finding out new creative ways to get media access content
keeping copyright issues at priority. This is another main risk of Netflix.
 PESTEL ANALYSIS OF
NETFLIX
POLITICAL ECONOMICAL
01 Censorship has demonstrated to be a
02 When contents are purchased from
problem. distributers, the variable exchange rate has
The services of Netflix is not available in all an impact on the economy.
the nations due to the governmental laws There is a continuous increase in the Netflix
and restrictions. subscription price which is leading to a decrease in
subscriptions.

SOCIAL TECHNOLOGICAL
03 The better office environment is benefical to
04 Very High-quality video are available in Netflix
the business growth. with less amount of data consumption.

Employees have been in a situation that they The subscribers are confused by the frequently
are stuck by the good behaviour of their switching algorithms.
colleagues and CEO.

ENVIRONMENTAL LEGAL
05 06 The rapid increase in the cost of the
Another step to sustainable future and environment is
subscription created an dispute between the
the reduction in the use of office paper.
organization and their clients.

Netflix had to deal with the complaints from a

small percentage of their consumers regarding
continuous copy right issues.
 PROBLEM
STATEMENT
In first two quarters of the year, Netflix lost 1.2 million subscribers. In the second quarter
alone, there were a record 9,70,000 users, and this makes it 2 quarters in single row
where the company has lost their customers. Over 2,00,000 accounts lost last year.

If not for Netflix's decision to ha lt

services in Russia as punishment for
the war in
Ukraine, the figures would have been
positive.

While competitors like HBO Max, Disney, and

Hulu have gained subscribers, employee
layoffs have made headlines for Netflix due to
the decline
in customer addition.
PROBLEM
STATEMENT

PROBLEM STATEMENT -
W HAT CAUSE CUSTOMERS
TO UNSUBSCRIBE THE
SERVICE ?
 RESEARCH
METHODOLOGY
Methods used for data

collection 1. Prim a ry da ta
Accurate information must be obtained from the original source in order to collect data.
collection
Data are collected directly from the population by different methods, such as questionnaires, face to face
interviews, phone interviews etc.

Most of the studies require expert opinions, which is collected as primary data.

Original data from any demographic can be collected, making it suitable for investigations
involving a range of populations.
 RESEARCH
METHODOLOGY
2. Seconda ry da ta collection

• This type of data is not obtained from primary data.

• Data obtained from secondary collection method are mostly from already published research papers.

• Population

• Age group between 18-40, males and females were included

 STRATEGIES BY
NETFLIX
0 To stop the bleeding, Netflix is expected to
1 launch a lower-priced ad-serving version
later this year.

Users can pay less with the ad-

supported subscription plan.

Microsoft will support the platform's

technical and promotional needs.

Drop from its current $15.49 subscription

to between $7 a nd $9.
 STRATEGIES BY
0 NETFLIX
Netflix has also announced a partnership
2 with Ubisoft.

According to reports, Netflix has partnered with

Ubisoft to support its fledgling gaming
business.

With no commercials or in-app sales, the

games will be made exclusively available to
Netflix customers, giving Ubisoft the cha nce
to reach new audiences and try out new
formats for its classic games.
FRAMEWORK FOR PROBLEM
SOLVING
Mckinsey 7 steps process
involves:
Define the problem

Disaggregate the

problem Priotizes the

issue

Plan the analysis

Conduct the

analysis Synthesis
01 DEFINE THE
PROBLEM
WHAT CAUSE NETFLIX TO UNSUBSCRIBE THE
SERVICE ?

02 DISAGGREGATE

In this step the problem should be break down into simple parts for easy
understanading.

Customer attrition
Price Increase
Increased competition
Customer
dissatisfaction
03 PRIORITISE

The problems should be prioritised so that it can be solvedquickly.

The main problem which requires immediate solution is the loss of customers or
customer turnover.

04 WORK PLAN
Reduce the price
Provide high quality
streamings Increasing
alliances
Latest episodes should available right away without keeping the
customers Library updates should be done more often
Selection streaming irrespective of the location.

Parties Involved: CEO, Sales and Marketing, Financial department,

Technical department, Customer success team.
5. ANALYSE
Think evidence:
Here the market should know that Netflix is custmer friendly and
affordable. Increase Market demand
It satisfies the customers expectations from a streaming channel.

6. SYNTHESISE

Customers will be getting Netflix subscriptions at affordable prices as well with all
other features which they were waiting for.

7. COMMUNICATE

By initiationg these strategies the client should understand that Netflix is thinking
and performing out of the box.
All the features at afforable price will make the customer choose
Netflix or switch from their competitors.
CONCLUSION
• Doing something others can't accomplish is the core of a smart approach.

• Selling advertisements is hardly one of them.

• It becomes more challenging to identify Netflix from its rivals as a result.

• Despite the price increase and financial loss, Netflix can employ considerably more effective measures
to escape this situation.

• An unnamed talent agent claims that Netflix should concentrate on marketing particular programs and
motion pictures, boost the caliber of its movies, distribute some of them in theatres, and space out the
release of episodes. Netflix is in peril right now.
REFERENCES
ANDREWS, H., 2022. Netflix Falls to 4th Place in Streaming Services Customer Satisfaction. NERDBOT.

Andy, 2022. Pros a nd c ons of Netflix – Is it still worth it. APPS.UK.

Anon., 2022. Full Marketing Strategy of Netflix Explained with Company Overview and

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Bowman, J., 2022. Has Netflix Lost Its Competitive Advantage. THE MOTLEY FOOL.

Briefs, B., 2022. Why Is Netflix Changing Its Core Strategies. https://swarajyamag.com/analysis/why is-netflix-changing-its-core-

strategies. Campbell, P., 2018. Here's how we tear apart Netflix's pricing. PRICING PAGE TEARDOWN.

Gleiberman, O., 2022. Netflix Lost Subscribers, But It Really Lost Something Larger — Call It Mythology.

jesse, S., 2022. Unsubscribe: A guide to Netflix’s price increase in your country. FILM DAILY. https://filmdaily.co/news/netflixs-price-

increase/. Kovach, S., 2022. Netflix finally admitted two things we already knew about the streaming wars. CNBC.

MANAGER, T., 2020. Netflix customer satisfaction dropped in 2020. https://techymanager.medium.com/netflix-customer-satisfaction-

dropped- in-2020-8a8ecf29d750.
 REFERENCES
Acharya, N., 2022. A Complete Overview of the Marketing Strategy of Netflix. iimskills.

ALVIN, W., 2022. The Pros and Cons of Netflix Adding an Ad-Supported Tier.

makeuseof. Arun, R., 2022. A Case Study on Netflix Marketing Strategy. simplilearn.

AUGUSTIN, R., 2022. Ubisoft Is Developing Three New Mobile Games For Netflix.
Augustman.

Baker, I. O. a. A. S., 2021. NETFLIX: A CASE STUDY ON INTERNATIONAL BUSINESS

STRATEGY DEVELOPMENT. euraseans.

Cain, S., 2022. Netflix is introducing a new subscription with ads. Here’s what you need to know.

Theguardian. Easton, J., 2022. Netflix expands Ubisoft partnership with exclusive Assassin’s Creed game.

DIGITALTVEUROPE. Kain, E., 2022. The Good News And The Bad News About Netflix’s Ad-Supported

Subscription Tier. forbes.

Pallotta, F., 2022. Netflix is back to growing after a nightmare year of losing subscribers. CNN

BUSINESS. Sants, A., 2022. Netflix's advertising strategy is undervalued. Investors Chronicle.

Times, F., 2022. Netflix partners with Ubisoft to bolster fledgling gaming division. Streaming giant will launch three new mobile games next year
based on French company’s popular hits.
THANK
YOU