Netflix Inc. – Strategic Plan

ABSTRACT

The aim of this paper is to analyze the Netflix Incorporation current position and develop strategic plan for this company. For the purpose of the study, I will use the Strategic Management Model designed by Professor Mr. Forgione to analyze the Netflix Company. Additionally, it will be used the SWOT Analysis method to analyse the strengths, weakness, opportunities and threats of the company. Also, it will be examined the competitive market industry and the challenges around this company. Finally, this paper will analyze the new strategy: “Entering the Video on Demand Industry by downloading Streaming Videos on PC’s”.

Netflix’s business model has allowed it to thrive in the DVD rental market, but the development of technologies complementary to Video on Demand services are heralding the outdating of DVDs and its successor formats in the distant future. Netflix can prepare to eventually make a full transition from the DVD rental market to the VOD market by entering the streaming movie market today. By implementing its present entry in limited form, namely by offering streaming videos exclusively as a tie-in to its DVD service, Netflix will be able to differentiate itself from its competitors, and reduce the possibility of hurting its brand name due to any potential shortcomings with their new service. Meanwhile, its streaming service will act as a complement to its DVD rentals for several years to come. Ultimately, the experience Netflix gains while offering this bundle of services, combined with Netflix’s reputation for providing user-friendly interfaces will put Netflix in an ideal position to evolve into one of the major players in the VOD market in the last days of physical media. Taking advantage of the opportunity to enter the VOD market now is essential to Netflix’s future growth and survival [9].