Netflix SWOT Analysis

In this blog post, we will be performing a Netflix SWOT analysis. This is a great way to evaluate your company’s strengths and weaknesses so that you can make strategic decisions about how to improve your business.

Background of Netflix:

Netflix is an on-demand internet streaming media company founded in 1997 and began its service to the public in 1999. They now operate as a subsidiary of Netflix, Inc., which both markets their content and licenses other productions. Offered initially exclusively for DVD or Blu-ray rental by mail, they became one of the first television shows distributed over the Internet via iTunes

Importance of Netflix SWOT Analysis:

A SWOT analysis helps evaluate its strengths and weaknesses to make strategic decisions about improving its business. A SWOT can be done on any aspect of a business, but it often focuses on the four main areas that are critical to determining performance:

Strengths (S), Weaknesses (W), Opportunities (O), and Threats(T). These categories should not only reflect where your organization currently stands but also what could happen in the future. For instance, opportunities might include an expected change in government regulations, or threats may refer to competitors entering into markets you occupy. The purpose of this exercise is not just to identify these factors, so you know where they stand now but to understand if they may change in the future.

Netflix SWOT Analysis

Netflix SWOT Analysis

Netflix SWOT Analysis


Brand reputation:

Netflix is a well-known brand among customers. Their name, logo, and service are all recognized by regular consumers


With the rise of cord-cutting, Netflix has become a popular choice for entertainment in many households around the country. This means that they have cornered off their niche market within television production and delivery


Netflix has a highly competitive team of employees and is constantly releasing new content. They are known for their original programming, which allows them to stay in touch with the changing public tastes

Exponential growth:

Netflix has grown exponentially since its founding. They have been able to keep this growth up by providing consistent quality, original content and now expanding into new areas like comedy specials

Affordable prices:

Netflix has affordable prices, which means that anyone can subscribe to their service. This attracts a broad audience and makes it possible for Netflix to expand into different markets.

Global customer base:

Netflix has a wide global customer base. This allows them to expand into other markets with ease and reach a wider audience


Netflix can adapt their product or services to meet customer needs. They are always looking for ways to improve and grow



Netflix is expensive for what you get. To gain the services of Netflix, one must pay a monthly fee and then select their package (basic or premium). This means that many people cannot afford this service on top of all the other necessities in life like groceries

Needs internet connection:

The only way to utilize Netflix’s full capabilities is by having an internet connection. The company does offer offline viewing options, but these are limited

Slow delivery times:

Delivery time can be slow when ordering movies from Netflix since they stream content instead of shipping DVDs. It may take up to two weeks before titles become available depending on where someone lives concerning distribution centers around the world

Options not tailored to individual needs:

Netflix does not offer many options that are tailored to meet the specific viewing needs of an individual. They do have a “Kids” section, but other than this, their offerings remain largely standard

Limited copyrights:

Netflix only has the rights to stream movies that are released a certain number of years ago. This means that not many titles from studios like Disney or Warner Brothers can be watched on Netflix

Stagnant marketing:

In recent months, Netflix’s advertising has been less than impressive. Their advertisements barely seem to exist at all, which is problematic for those who rely heavily on this company as an entertainment source

Increased operational costs:

In recent years, Netflix has increased its operational costs. This means that they are spending more money to keep up with the changing industry

Increased marketing campaign:

There have been reports suggesting that Netflix may need an increase in their advertising budget if they hope to compete within this cut-throat industry. With such limited funds already being spent on production, hiring talent, and paying salaries – there might not be enough leftover

Increasing debt:

In recent years, Netflix has seen an increase in debt. This could be a result of the company’s failure to utilize its budget wisely, or it may simply be because they are not making enough money

Increased licensing costs:

Netflix spends more time and money on acquiring licenses for content than most other companies do

Decreased customer satisfaction:

Since 2017 Netflix has seen a decrease in customer satisfaction with their service


Increase in profits with increased subscription rates

If Netflix continues to grow and expand into new markets, it will increase profit margins by increasing pricing on subscriptions. This would allow them more funds for original content production as well as investments into research and development

New customers from the outside current market segment

Recently, Netflix has been expanding its services (e.g., DVDs). It is now possible for people who cannot afford cable tv or don’t want premium channels to subscribe to the service, which gives them access to a multitude of movies. This will allow them more customers from outside the current market segment

An added benefit for newer titles

Although Netflix’s services are limited in terms of what it offers, its licensing rights have improved, and they now offer some new releases that other streaming companies don’t, which can be an advantage

Increase in membership numbers

Many memberships have helped Netflix grow into one of the most popular entertainment sources available today. The company also benefits significantly from this as well since its customer base is loyal



Netflix’s biggest threat may be that other companies out there offer the same services and have a larger variety of titles to choose from. With more than half of Americans having access to streaming video on demand- it is becoming increasingly difficult for Netflix not to get left behind

Increase in operational costs:

The company has been expanding into new markets, which means they will need an increase in their marketing budget as well as higher licensing fees so that they can continue providing content outside of the US market

Decreased profit margins with increased investment:

Although this might seem like a good thing, investing heavily does mean that profits will fall because money is being spent elsewhere – something Netflix needs if they want to keep up with competition within the industry


The problem with Netflix is that it has a smaller selection of titles than other platforms. This, in turn, makes this company more susceptible to piracy since there are some movies and tv shows which people would rather watch illegally

Market saturation:

Netflix has a finite amount of money to spend on their productions which means that they will eventually have to stop and cut back. This may mean less original content is being produced

Government regulation:

The government may want to regulate the price for subscription rates or content rights, making Netflix’s goals more difficult and possibly even leading to bankruptcy. This is something that should be seriously considered since it has been happening with other companies who have had similar problems

SWOT Analysis Assignment Help

SWOT Analysis Assignment Help


-Invest in research and development:

This will allow Netflix to create new content that is more appealing to customers, generating more revenue for the company. This includes investing money into creating better hardware or software as well as buying up patents (e.g., companies such as Apple)

-Focus on customer satisfaction:

Netflix needs to work on its customer service to maintain a higher level of satisfaction with its current clientele. They could do this by improving communication between themselves and clients or even offering refunds if someone isn’t satisfied with the service provided

-Increase membership numbers through marketing strategies:

Netflix should consider advertising within other industries to increase its member base – especially since streaming video content is becoming more popular. They could also try improving their current marketing strategies to reach a larger audience better

-Increase advertising or promotional campaigns:

In the past, Netflix has been successful with using this strategy, and it can only help them now that they are struggling to keep up with other competitors within the industry

-Focus on mobile devices:

Netflix needs to have an increased focus on developing apps so that people who use these devices can easily access their service. In addition, some of the company’s most recent innovations should include integrating streaming services onto consoles (e.g., Xbox) which would increase customer satisfaction – as well as attract new memberships from those trying out new technology offers by providers

We can help you do a SWOT analysis for any company. If facing challenges, we can help out. Our experts are always online to give students the best assistance they deserve.

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