Running head: NETFLIX CASE SUMMARY ANALYSIS
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NETFLIX CASE SUMMARY ANALYSIS
Netflix Case Summary Analysis
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1. External factor analysis summary table/ EFAS
External factors
Weight
Rating
Weighted scores
Comments
Opportunities
Social factors
0.20
4
0.80
Netflix focuses on establishing a deep connection with its customers
Technological factors
0.15
4
0.60
The incorporation is invested with improvement in its technology, for instance, the introduction of the content rating features.
Environmental factors
0.05
2
0.10
Not so much focused on environmental factors, as its production is already environmentally friendly.
Bargaining power of buyers
0.10
3
0.30
Focuses more on ensuring customers are well served.
Threats
Threats of new entrants
0.05
4
0.20
It has to keep its research and development department in work to ensure that great features that surpass the entries exist to avoid losing subscriptions.
Political environment
0.10
4
0.40
The incorporation has to deal with complex issues such as tax laws, and international trade policies
Legal environment
0.10
4
0.40
The incorporation has to oblige with every law found in every country of its operation.
Economic factor
0.05
3
0.15
It has to bear with varying economic times, fueled by the existence of inflation.
Bargaining power of suppliers
0.05
3
0.15
Suppliers are less of a concern to Netflix, as the corporation can deliver its original contents to its customers, despite it being expensive.
Threats of substitutes
0.10
4
0.40
It has to keep improving on its products to avoid losing customers.
Rivalry with competitors
0.05
4
0.20
Since it’s a well-known and acceptable brand, it focuses less on dealing with competition.
Total
1.0
3.7
2. Internal factor analysis summary/ IFAS
Internal factor
Weight
Rating
Weighted core
Comments
Strengths
Value chain activities
0.10
3
0.30
Needed for adding value to Netflix services and reducing the cost of differentiating services
Partnerships
0.15
3
0.60
the incorporation gets broad access to content for customers
Servers for storing data
0.05
2
0.10
Allows for easy retrieval and keeping of customers’ data
Improved server security
0.05
3
0.15
Allows privacy for customers streaming to be highly upheld
Use of cloud architecture
0.20
2
0.40
It makes the provision of services easy
Agile marketing
0.05
3
0.15
Allows attraction of a wide pool of customers
Good leadership
0.05
4
0.40
Ensures the best organizational culture
Incentive reward system
0.10
4
0.40
Helps in retaining existing employees
Product differentiation
0.10
3
0.30
It helps in attracting new customers
Weaknesses
High employee retention rates
0.05
2
0.10
Limits room for acquisition of new beneficial talent
Low allowance of employee turnover rates
0.05
2
0.10
May result in the presentation of high conflicts, hence low-quality service provision
High spending on advertisement
0.05
3
0.15
Results in increased expenses compared to the revenues.
Total
1.0
3.05
3. Strategic factor analysis summary/ SFAS
Strategic factor
Weight
Rating
Weighted score
Duration
Short
Intermediate
Long
Opportunities
Social factors
0.20
4
0.80
X
Technological factors
0.15
4
0.60
X
Threats
Political environment
0.10
4
0.40
X
Legal environment
0.10
4
0.40
X
Economic factor
0.05
3
0.15
X
Strengths
Partnerships
0.15
3
0.45
X
Servers for storing data
0.05
2
0.10
X
Agile marketing
0.05
3
0.15
X
Good leadership
0.05
4
0.20
X
Weaknesses
Low allowance of employee turnover rates
0.05
2
0.10
X
High spending on advertisement
0.05
3
0.15
X
Total
1.0
3.4
4. Threats opportunities, weakness, and strength analysis/ TOWS
Internal factors
External factors
Strengths/S
Partnerships
Servers for storing data
Agile marketing
Good leadership
Weaknesses/W
Low allowance of employee turnover rates
High spending on advertisement
Opportunities/ O
Social factors
Technological factors
SO
Form partnerships with companies that have a significant social following.
Use the advantage of their social following to market their services.
Make use of the beneficial leadership to connect well will employees and customers.
WO
Utilize the ability to connect well with employees and customers to allow the employees to be open about challenges that would enable them to turn over their jobs when necessary.
Take advantage of the prevailing advantageous technology to have the best advertising without spending more on advertisements.
Threats/T
Political environment
Legal environment
Economic factor
ST
Utilize the god leadership to help adhere to the prevailing pollical and legal requirements.
Utilize the agile marketing capabilities to help deal with the dynamic economic environment
WT
Allow employees to turn over their jobs at will when they face challenges, as this will limit instances of economic problems related to the production of poor-quality services.
Adherence to political and legal environments requirement to enhance better incorporation’s operations.
5. SWOT ANALYSIS
STRENGTHS
Value chain activities
Partnership
Servers for storing data
Improved server security
Use of cloud architecture
Agile marketing
Good leadership
Incentive reward system
Product differentiation
WEAKNESSES
High employee retention rates
Low allowance of employee turnover rates
High spending on advertisements
OPPORTUNITIES
Social factors
Technological factors
Environmental actors
Bargaining power of buyers
THREATS
Threats of new entrants
Political environment
Legal environment
Economic factor
Threat of substitutes
Rivalry with competitors
Bargaining power of suppliers