E Business Strategy
E Business Strategy
Everything from buying a new phone to getting new clothing can now be done with a single
click thanks to the advent of the internet. E-companies, often known as online enterprises,
have made a significant impression on the digital world by trading products and services via
the internet. Starting an internet company has a number of benefits, including being quicker
to setup and having the opportunity to reach a worldwide audience. Let's take a closer look at
what eBusiness is and how it differs from traditional business, as well as some of the most
popular courses and occupations in the sector. (leverage edu 2020)
Netflix is the world's greatest Internet television network, with more than 50 million
customers in almost 50 countries watching more than two billion hours of TV and movies
each month, including original programmes. There is no limit to how much a Netflix
subscriber may watch each month for one cheap monthly payment. All members may play,
stop and restart viewing, without ads or obligations. This course-work discusses the internal
and external drivers of Netflix and also the strengths, weakness, opportunities and threats are
analysed by the SWOT analysis technique. (Diaz 2014)
BACKGROUND to NETFLIX
Founded in 1997 by Marc Randolph and Reed Hastings (Forbes, 2022), Netflix is a streaming
entertainment service company. With over 222 million paid memberships in 190 countries
(Netflix, 2021), Netflix has grown to become a popular video streaming service for many
around the globe. Users can access and enjoy a wide variety of movies, TV series, feature
films and documentaries in more than 30 languages over the Internet. Headquartered in Los
Gatos, California, the company operates in three divisions: Domestic Streaming, International
Streaming and Domestic DVD (Forbes, 2022).
Netflix began as an online DVD rental service, which allowed users to subscribe to unlimited
DVDs on a monthly fee and deliver them by mail to their homes (BBC, 2018). But in 2007,
the company made the decision to switch to a video-on-demand subscription model, offering
consumers the ability to stream content via internet-connected devices, game consoles and
TVs (Statista, 2022; BBC, 2018). By 2021, Netflix’s annual revenue amounted to roughly 30
billion US dollars, a massive increase from 1.2 billion US dollars back in 2007 (Statista,
2007). Netflix’s ability to align with customer requirements through innovative technology,
original content, and flexibility has contributed to the company’s continued success within
the entertainment sector (Statista, 2022).
THE MISSION
THE VISION
Netlix's corporate objective is "to maintain our position as a top digital entertainment
company." According to the company's mission statement, the company's goal is to be on top
of its competitors, such as Amazon and Walmart. In several of its official materials, Netflix
declares that it aspires "To maintain leading by providing an excellent entertainment
experience." The following are the primary aspects of Netflix's business vision (ie) Keeping
up the good work, Internet, Entertainment.
THE BUSINESS MODEL CANVAS OF NETFLIX
1. KEY PARTNERS
Netflix offers users a wide variety of genres. Their library (movies or series) is
for everyone who enjoys viewing movies, TV shows, and documentaries.
Netflix provides video for children and adults, but prioritises family-friendly,
educational, and entertaining content.
7. CHANNELS
Users may access Netflix via one or more of the following channels:
Website-based streaming
App-based streaming
TV apps and game consoles
DVDs-by-mail
9. REVENUE STREAMS
Netflix didn't gain considerable money until 2007 when it offered "streaming"
services via subscription plans.
Three monthly pricing choices Basic costs $8.99/month, Standard
$12.99/month, and Premium $15.99/month.
Netflix expanded its consumer base with international streaming.
Upgrade from Basic to Premium, etc.
Netflix originals like Fuller House and House of Cards.
THE COMPETITORS OF NETFLIX
Amazon Prime Video Amazon Prime Video is one of Netflix’s most significant
competitors. Launched in 2006, Amazon Prime Video is
another popular video-on-demand provider that enables
users to purchase or rent a variety of movies and TV
shows. Much like Netflix, Prime Video is accessible on a
selection of devices, including mobile phones, tablets,
game consoles and the Web (Amazon, 2022). As of 2020,
subscribers on Prime Video averaged 200 million people,
and in 2021, it ranked second as the most searched
streaming service globally behind Netflix (Statista, 2022).
Apple TV+ Apple TV+ rivals Netflix. Apple TV+ delivers unique
Apple-made 4K HDR films and series. Apple TV+ costs
$4.99 a month in the US, with a seven-day free trial, and
enables six family members to share an account. This ad-
free service is accessible in 100 countries and 40
languages (Callaham and Sharma, 2022). By 2022, Apple
TV+ had 25 million paying members (Statista, 2022) and
39 million by year's end (Statista, 2022).
SWOT ANALYSIS OF NETFLIX