Netflix - SWOT analysis and managemetn characteristics PowerPoint Presentation

Netflix - SWOT analysis and managemetn characteristics - PowerPoint Presentation Example Finally, the Netflix model is future-proofed, because the streaming business that originally augmented dvd rentals can grow with the demand for streaming content. Netflix has relatively few weaknesses, but those that exist revolve around the novelty of its business model. People who are not comfortable with the internet (such as aging or rural people) will be resistant to this radical change in rental – furthermore, the subscription service is a barrier to entry to occasional renters or those that rent movies only occasionally. There are extensive opportunities for Netflix. Its robust distribution network, able to get items to consumers in one business day, could be used to distribute other content or products should Netflix decide to expand. Video games or related media spring to mind as an especially viable option, but perhaps Netflix could also expand to book rentals, music rentals and so forth. Netflix is currently also a leader in online streaming video distribution. The obvious growth opportunity here is the development of original material for Netflix online, giving consumers a reason to stick with Netflix rather than go to the numerous copy-cats that exist and have sprung up after Netflix’s success. Netflix, though robust, is not immune from outside threats. One of the biggest threats is the threat to the rental industry in general: the future of media delivery is streaming, but Netflix still relies heavily on dvd rentals for its profit margins. There is danger that Netflix could hurt its own dvd business by building a more robust streaming business, and vice versa. Classic wisdom indicates that people will choose to watch content on one of those two ways, not both. Furthermore, now that Netflix’s model has proven profitable, they will face major competition from upstart companies that might have less pressure to make a profit and lower initial costs. Netflix has a