Company Analysis of Netflix

3 mn read

Netflix is an online streaming service that provides a cascade of latest and old movies awarded television series and shows, documentaries and other entertaining and educational content that one can enjoy at any time of the day. It not only has distinguishable competencies but core competencies as well. Providing a superabundance of material to watch is one of the distinctive competencies that give it an edge over the television industry. This has also given Netflix the advantage to trounce its biggest competitors in the business market, the film rental industry, and mark its foot in the very emerging digital era of technology. Another of its core competency is that it provides a simple and comprehensive subscription model to its customers has made it quite popular among the young generation. Netflix Company has provided its end users with an exceptional quality of movies and shows, making it the number one go-to streaming application among people. With its option of connecting multiple devices from the same account, it has globalized the experience of movie watching. It uses a technology that personalizes the movies for its consumers. In doing so, the consumers have more to watch and realize the worth of online Netflix streaming.

Its policy of excluding late fees confusion, providing advertisement-free content, and fast and readily available movies and shows are some of its many competitive advantages (Russell Walker). It uses the concept of logical analysis to counter-influence its customers and provide them with high-quality customer service; in this way promotes its platform by enhancing its e-commerce capabilities. Although Netflix never used new technology its innovative way of handling it and management of the flow of charges has helped in proliferating the business on an international level (Solli). The extent of advertising on all sorts of media platforms and creating deals and policies to make the Subscription Video On-Demand (SVOD) for its customer a piece of cake has made Netflix one of the top online streaming services in the global market. Its provision of easily accessible online movies has gained it the most advantage in its journey. The value chain of Netflix for its valuable customers starts with its inbound logistical system. In this way, it keeps an eye on its logistics by producing its own content (Bernat). The customer value chain is the branch of its self-production warehouse. According to the Variety website, Netflix hit a homerun of $15 billion from its own production house in 2019. This propagates to the management of its outbound logistics which transforms to its mobile application and internet browsing. This helps Netflix to monitor and manage its customer logistics and propagate its business accordingly.

Netflix realizes that as time is advancing into a more digital age, the preferences of movie watchers are changing with it. Shifting the marketing paradigm to the online-based and producing content that is unique and all-embracing has increased its market value. The intelligent marketing of Netflix and its irresistible sale approaches, such as advertising through its awarded movies and shows, are the tactics that serve the core of its increasing popularity in the online streaming industry. The horizon of Netflix’s customers and distributors is quite broad, which gives it the advantage of enhancing its name in the global market. Additionally, it provides a wide variety of streaming options within its value chain, like fluctuating resolution of the content and translations and subtitles of various languages making it a globally recognizable and preferable online streaming service. By the analysis of Netflix’s core competencies, it is clear that they are determined to their vision of providing an excellent watching experience to their customers and, in the way, maintain their high level of quality.

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