SWOT ANALYSIS ON Netflix
Netflix, Inc., commonly just Netflix, (NASDAQ: NFLX) is an American corporation that offers both on-demand video streaming over the internet, and flat rate DVD and Blu-ray Disc rental-by-mail in the United States and Canada (streaming only).
The company was established in 1997 and is headquartered in Los Gatos, California. It started its subscription service in 1999. In 2009 it was offering a collection of 100,000 titles on DVD and surpassing 10 million subscribers. On February 25, 2007, Netflix announced the billionth DVD delivery.
* Lead market share of online rentals
* Low fixed costs
* Worlds largest selection of DVDs
* Fastest delivery time of any online DVD rental company with over 35 DCs
* Service: over 90% of DVD's are received by customers within one day of ordering
* Strong website (shopability, navigation, reviews)
* Can't control most important expense: shipping expenses
* Older demographic has a hard time understanding their concept
* Watch Instantly feature only allows a small selection of DVD's
* Distribution time
* presence in only DVD segment
* Pricing segmentation (i.e., different plans)
* Online distribution
* Other types of rentals (Video games, educational, institutional, etc)
* Expanding to Video Game rental
Threats[list][*] Rising stamp costs[*] Other larger retailers launching into similar space (i.e., Wal-Mart)[*] Online digital distribution (iTunes, Napster)[*]Redbox[*]Blockbuster allowing the rental of games in addition to movies[*]Like most brick-and-mortar rental businesses, Netflix often has
trouble providing enough copies of new, popular movies.