Desire on the part of established organizations to stream video online 0 3 0 5

Desire on the part of established organizations to

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Desire on the part of established organizations to stream video online 0 3 0 5 Partially-free streaming services such as Hulu 0 2 0 6 Overreliance on outside entities such as internet providers 0 2 0 7 Large corporations are entering the industry 0 3 0 8 Swift decline in DVD rentals 0 2 0 9 Emergence of rental kiosks such as Redbox 0 3 0 1 0 Video-on-demand offerings by cable television providers 0 3 0 TOTALS 1 3 Appendix C: SWOT Bivariate Strategy Matrix Strengths Weaknesses 1. Convenience 2. Swift domestic growth 3. High-quality selection of independent films 4. Strong value 1. Slow international growth 2. Impediments to international market participation 3. Loss of exclusivity contract with Epix to Amazon.com 4. Decline in DVD-by-mail 30
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BUSI 690-D06: Group Case Study 1: Netflix 5. Original content quality 6. Emphasis placed on film ratings by customers 7. Customer retention strategy 8. Ease-of-use 9. Utilization of emerging technologies 10. Strategic partnerships subscriptions 5. Expired contracts with Sony and Starz 6. Difficulty with raising subscription prices 7. Significant cost of acquiring content 8. Slowing domestic subscriber growth 9. Internet connectivity issues 10. Questionable response to new net neutrality rules Opportunities SO Strategies WO Strategies 1. Decline in cable television subscriptions 2. Increase in consumer ownership of streaming devices 3. Increase in opportunities to expand globally 4. Continued opportunities to develop original content 5. Constant release of new content such as films and television programs 6. New licensing opportunities 7. Failure of competitive forces such as Redbox's Redbox Instant 8. Continuing popularity of original programs 1. Focus on leveraging opportunities for expansion (S2, O3) 2. Continue to focus emphasis on the development and marketing of original content (S5, O4) 3. Continue to utilize customer-supplied data to better serve subscriber needs (S6, O5) 4. Provide incentives for recently-unsubscribed cable television customers to join Netflix (S4, O1) 1. Search for more opportunities to work with content producers to exclusively distribute films and television programs (W3, W5, O6) 2. Leverage the increase in consumer ownership of streaming devices to increase subscription levels (W8, O2) 3. Leverage the increase in global demand for streaming video to quicken the pace of international growth (W1, O10) 31
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BUSI 690-D06: Group Case Study 1: Netflix 9. Lower cost of purchasing televisions 10. Increase in demand for streaming video Threats ST Strategies WT Strategies 1. New net neutrality rules 2. Loss of contracts to competitors 3. Faster international success on the part of some competitors 4. Desire on the part of established organizations to stream video online 5. Partially-free streaming services such as Hulu 6. Overreliance on outside entities such as internet providers 7. Large corporations are entering the industry 8. Swift decline in DVD rentals 9. Emergence of rental kiosks such as Redbox 10. Video-on-demand offerings by cable television providers 1. Form more strategic
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