Summary of Strengths and Weaknesses
There are a number of reasons why Netflix is one of the leading streaming service companies. First of all, the firm is successfully operating in many countries across the globe, which makes its brand highly recognizable and trustworthy. Secondly, due to the fact that streaming service business models can be easily adapted by other companies, Netflix offers Netflix Original production. For this reason, unlike other movies, cartoons, and series that can also be purchased by competing streaming platforms, Netflix provides products that can be accessed solely by its customers. Thirdly, the company allows access to its products from various platforms such as YouTube and Instagram, and different devices including laptops, Smart TVs, tablets, and smartphones. Moreover, the company uses special algorithms with the help of AI as well as ethnographic insights that help it to best determine and target the demands of the customers globally (Charles and Gherman, 2019). Finally, strong leadership that provides wide autonomy and professional growth possibilities ensure that Netflix remains innovative and competitive.
However, although Netflix enjoys wide popularity around the globe and is quite successful, there are still some weaknesses to be addressed. For instance, the company is still over-reliant on the North American market, making it vulnerable to regional demand fluctuations. Additionally, Netflix’s subscription prices are higher than those of other main competitors such as Amazon Prime Video or Disney+. Last but not least, the company possesses a significant debt of around $15 billion (Sherman, 2021). Yet, the firm claims that it will not necessitate external financing any longer.
Best Practices
From the discussion above, it is seen that the two best practices that other companies can adapt from Netflix include the innovative culture and advanced customer analytics. In addition, the company is constantly concerned about data safety which reduces the risks of information leakage (Netflix, 2021). Lastly, Netflix is an example of how its leading change vision helped the company to stay competitive for many years.
Development Opportunities
There are several directions that Netflix can choose to develop further, but one of the most promising ones is forming alliances with other companies. In this regard, one promising cooperation can be formed with internet providers who can include Netflix subscriptions as part of the plan. In a similar vein, Netflix can form alliances with Smart TVs, smartphones, and laptop producers for mutual benefits.
References
Charles, V., & Gherman, T. (2019). Big data analytics and ethnography: Together for the greater good. In J. Kacprzyk (Ed.), Big data for the greater good (pp. 19-33). Springer, Cham.
Netflix. (2021). Netflix Content Security Best Practices. Web.
Sherman, A. (2021). Netflix will consider buybacks as it returns to positive cash flow after 2021. CNBC. Web.