Netflix Strategy Swot, Porter, Pestel

Strategy analysis of Netflix[pic 1][pic 2][pic 3]

Instructor: Bruno cirillo

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By Amine Bouzar

Ferhat Atl

Manea Calvino

Deng Xinyue

(SKEMA Business School, Sophia Antipolis)

1.Introduction

Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Los Gatos, California, USA. It is an American company that offers television series and movies streaming on the internet. Netflix is ​​established in North and South America, but also in the Caribbean, and in Europe with countries such as France, Germany, Portugal, Norway or Italy. As of January 1, 2016, Netflix has no less than 70.8 million users for 65.55 million users as of June 1, 2014. First of all, the Netflix system consists in being able to rent DVDs by correspondence from the Internet ( the subscriber pays monthly and receives his DVD by mail) and then gradually turned into a video streaming service on the internet for a monthly payment for each relatively low user. This streaming service has been active since 2007. It was not until 2006 with the development of YouTube that came the idea of ​​developing a video streaming service. Many devices are compatible to use Netflix such as smartphones, video game consoles, Blu-ray players, TVs etc ... The geographical expansion of Netflix from 1997 to today has been very important. Netflix grew very quickly abroad. We are even talking about a "born global" company, that is to say a company dedicated to internationalization. On the other hand, Netflix receives many criticisms, for example in France because of its lack of choice in its catalog, contrary to the United States where the catalog is much more supplied. We will therefore make a strategic analysis of this enterprise "born global": Netflix.

1.1 The founder of Netflix

Let's draw a portrait of one who wants to be the creator of a franchise today known worldwide as Netflix: Reed Hastings. Reed Hastings was born on October 8, 1960 in Boston to a wealthy family (a lawyer father who worked for Richard Nixon). Some journalists would even talk about a certain American "nobility", he never lacks anything. So he was dedicated just like his father and grandfather before him to join a prestigious university such as Harvard or Yale, but it is the University of Bowdoin in Maine that he decided to integrate, where he won the prize for the best student in his class and a degree in mathematics. Also, he was working on artificial intelligence and it is quite natural that he decided on his return to send his application to Stanford and MIT. And Stanford will be accepted and start computer studies. In 1991, he founded the successful software company Pure Software and went public in 1995. After a merger, Pure Software was sold for 700 million dollars, Reed Hastings is then rich and only 26 years old. But he has no desire to stop so well, he then decided in 1997 with his friend Marc Randolph to found the company that will make it even more famous, Netflix, an Internet DVD rental company that will add some years later a string to his bow by adding a video-on-demand service via internet. His fortune is currently estimated at $ 840 million.

1.2 Geographical presence of Netflix

Today Netflix is ​​present in 190 countries. Below is the list of countries where the concept of Netflix monthly subscription has been introduced: September 1999: United States ➢ September 2010: Canada ➢ November 2011: 43 countries throughout Latin America and the Caribbean ➢ January 2012: United Kingdom and Ireland ➢ October 2012: Sweden, Denmark, Norway, and Finland ➢ September 2014: Belgium, France, Germany, Austria, Luxembourg and Switzerland ➢ September 2015: Japan ➢ October 2015: Spain, Italy, Portugal ➢ January 2016: Middle East, South Korea, Singapore, Hong Kong, Taiwan, Rest of Europe, Africa.

Here is a summary table of Netflix prices and the variety of the catalog according to different countries.

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The main problem of Netflix in its implementation is the variety of the catalog according to each country. Indeed, we can see from the table above that in the United States, the catalog is much more available than elsewhere.

This is explained by the fact that in France for example.

2.External and Internal analysis

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