Netflix Case Study

Explain Netflix’s marketing strategy. Can it sustain its competitive advantage? Why or why not?

Netflix's marketing strategy was to try and reach as many customers as possible by doing direct streaming online and mailing out dvd's for rental. I do think that they can sustain its competitive advantage because they do both, something competitors like Redbox don't do. They offer rentals but not in the mail, and they do not offer direct streaming online. They offer convenience which a lot of customers are looking for. 

How has their strategic change and rapid reversal affected their customers?  Do you believe this situation is short-term public relations nightmare or a long-term reversal of fortune?

Their customers were furious when they learned about the split in services and up in prices. Most customers wanted both services since they offer different things but were upset with the 60% increase in price. It caused them to lose a lot of customers. I do think it was just short term though, because Netflix is still thriving and people are still paying for the services. 

Perform a SWOT analysis for Netflix. What are its biggest threats and which opportunities should it pursue? You may attach an attachment if necessary.

Strengths: well known company, thrust-worthy, convenient, available in the mail or streaming online.

Weaknesses: people have to pay for separate services on different websites, price increase 

Opportunities: international streaming, original content

Threats: more and more companies being started to compete with, illegal streaming 

What is the best way for Netflix to grow its business? Justify your answer.

I think the best way to grow their business is to do what they are doing now which is to create original content. They have such a great platform and such a big audience that they can put shows out that will be talked about. People will want to subscribe to see the shows everyones talking about and Netflix will be the only place they can find that content.