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Desire on the part of established organizations to stream video online0 3 0 5 Partially-free streaming services such as Hulu0 2 0 6 Overreliance on outside entities such as internet providers0 2 0 7 Large corporations are entering the industry0 3 0 8 Swift decline in DVD rentals0 2 0 9 Emergence of rental kiosks such as Redbox0 3 0 10 Video-on-demand offerings by cable television providers0 3 0 TOTALS1 3 Appendix C: SWOT Bivariate Strategy MatrixStrengthsWeaknesses1. Convenience2. Swift domestic growth3. High-quality selection of independent films4. Strong value1. Slow international growth2. Impediments to international market participation3. Loss of exclusivity contract with Epix to Amazon.com4. Decline in DVD-by-mail 30
BUSI 690-D06: Group Case Study 1: Netflix5. Original content quality6. Emphasis placed on film ratings by customers7. Customer retention strategy8. Ease-of-use9. Utilization of emerging technologies10. Strategic partnershipssubscriptions5. Expired contracts with Sony and Starz6. Difficulty with raising subscription prices7. Significant cost of acquiring content8. Slowing domestic subscriber growth9. Internet connectivity issues10. Questionable response to new net neutrality rulesOpportunitiesSO StrategiesWO Strategies1. Decline in cable television subscriptions2. Increase in consumer ownership of streaming devices3. Increase in opportunities to expand globally4. Continued opportunities to develop original content5. Constant release of new content such as films and television programs6. New licensing opportunities7. Failure of competitive forces such as Redbox's Redbox Instant8. Continuing popularity of original programs1. 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
BUSI 690-D06: Group Case Study 1: Netflix9. Lower cost of purchasing televisions10. Increase in demand for streaming videoThreatsST StrategiesWT Strategies1. New net neutrality rules2. Loss of contracts to competitors3. Faster international success on the part of some competitors4. Desire on the part of established organizations to stream video online5. Partially-free streaming services such as Hulu6. Overreliance on outside entities such as internet providers7. Large corporations are entering the industry8. Swift decline in DVD rentals9. Emergence of rental kiosks such as Redbox10. Video-on-demand offerings by cable television providers1. Form more strategic