Provide incentives for recently unsubscribed cable

  • Liberty University
  • BUSI 690
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  • magpie2015
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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) 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 1. Form more strategic partnerships  to offset the loss of contracts to  competitors (S10, T2) 2. Find ways to increase Netflix’s  value to offset the free streaming  services offered by Hulu (S4, T5) 3. Explore innovative ways to  reduce the need for Netflix’s  subscribers to rely solely upon  internet connections for streaming  service (S9, T6) 1. Develop plans to compete with  international firms in the online  streaming industry (W1, T3) 2. Explore alternative distribution  methods to compete with kiosks and  other emerging methods of  competition (W4, T9) 3. Form a more cohesive  government relations strategy (W10,  T1)
9. Emergence of rental kiosks such  as Redbox 10. Video-on-demand offerings by  cable television providers Appendix D: Boston Consulting Group (BCG) Growth-Share Matrix Appendix E: Competitive Profile Matrix (CPM) Competitive Profile Matrix (CPM)   Netflix Amazon Redbox Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.20 4 0.80 4 0.80 4 0.80 Global Expansion 0.20 2 0.40 3 0.60 2 0.40 Customer Loyalty 0.15 4 0.60 3 0.45 3 0.45 Market Share 0.05 4 0.20 3 0.15 2 0.10 Product Quality 0.10 4 0.40 4 0.40 3 0.30 Top Management 0.05 3 0.15 3 0.15 3 0.15 Price Competitiveness 0.15 4 0.60 3 0.45 3 0.45 Financial Position 0.10 4 0.40 4 0.40 3 0.30 Totals 1.00   3.55   3.40   2.95 Appendix F: Competitors’ Ratios Amazon.com, Inc. Profitability Ratios (MarketWatch, 2015) Gross margin 28.21 Operating margin -0.29 Pretax margin -0.12
Net margin -0.27 Return on assets -0.49 Return on equity -2.35 Return on total capital -1.11 Return on invested capital -1.26 Liquidity Ratios (MarketWatch, 2015) Current ratio 1.12 Quick ratio 0.82 Cash ratio 0.62 Outerwall, Inc. Profitability Ratios (MarketWatch, 2015) Gross margin 21.35 Operating margin 10.81 Pretax margin 7.26 Net margin 4.66 Return on assets 6.17 Return on equity 34.86 Return on total capital 9.16 Return on invested capital 9.67 Liquidity Ratios (MarketWatch, 2015) Current ratio 1.08 Quick ratio 0.66 Cash ratio 0.51
References Dorfman, J. (2014). Net neutrality is a bad idea supported by poor analogies.

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