Stan SWOT Analysis

Stan SWOT Analysis

Strengths

Low Cost Product Should do better in an economic recession since goods are priced low. Low cost provide significant...
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Easy to Navigate Website Having a simplified and easy to navigate website helps users to find the content they need quickly...
Fastest DVD Delivery Amoung Competitors Delivery time is key for Netflix. The faster the DVDs arrive at their customer's houses, the higher...
World's Largest DVD Movie Selection Having lot's of content in one place allows Netflix to maintain control of the market for movies....
Low Fixed Costs Low fixed costs allow a company to adjust to changing economic conditions without suffering big...
Strong Management Strong management can help a company to make good financial decisions, especially in difficult...
Netflix - Wii Partnership Netflix and Nintendo's Wii gaming system formed a partnership that allows movie goers to watch...
Market Share High market share will generate excess profits from large customer base and economies of scale....

Weaknesses

Succession Instability The inability to create a viable succession plan in case the leadership dies, is a big problem for a...
Lack of Streaming Content The largest movie producers have not released their best content to online movie streaming...

Opportunities

International Expansion Strong international presence and expansion should increase growth and profits. Expansion over...
Expansion of Online Rental Market Companies that specialize in renting music and video services to customers can expand into renting...
Online Distribution Network Lowers Costs Online or streaming distribution networks lower costs by avoiding the physical delivery of goods and...
Tiered Pricing Structure A tiered pricing structure allows more consumers to buy a particular product, because lower end...
Internet Video The advent of internet-ready television sets is helping to increase the viability of videos that...

Threats

Increasing cost to license content Netflix was able to generate exceptional profit margins its first few years because content owners...
Cost of Internet Bandwidth Bandwidth providers are threatening to increase the cost of broadband in order to increase their...
Video on Demand Competition Streaming video on demand competition will hurt DVD rental revenue and profits. Additionally,...
Online Security As more and more personal information appears online, the threat to online security grows. From...
Technology Costs and Services Decreasing in Price The cost of technology and the services that technology makes available are coming down in price. As...
First Release Time Delay Streaming media companies are running into problems, because they can't stream new releases until a...
First Sale Issues for DVDs DVD makers negotiated that right to sell their DVDs for one month before streaming and DVD rental...
Reached Market Saturation in The United States When a company reaches market saturation levels, this hurts their ability to expand in that market....
International Competition on Rise Higher international competition could decrease profits and hurt revenue growth. Potential negatives...
Post Office Cutback The threat of a cut in shipping by the post office could delay the delivery of packages, which could...

Stan SWOT Analysis Profile

Netflix, Inc. operates an online movie rental service servicing approximately 7.5 million subscribers in the United States. Through various plans, Netflix subscribers select DVDs online, receive the selected DVDs in the mail, and then return them using provided prepaid mailers. Netflix does not provide deadlines or charge late fees. After a DVD has been returned, Netflix sends the next available DVD in a subscribers wish list. The company has also boasts a library of over 6,000 digital films and videos which subscribers can watch instantly online as a free service to DVD subscription plans. Netflix now offers a streaming only plan without the DVD subscription service. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

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SWOT Conclusion

Strengths + Opportunities = 24

Threats + Weaknesses = 27

The conclusion reached in this SWOT analysis is… … A history of overcoming weaknesses makes it difficult for other firms to exploit their difficulties. The ability to capitalize on opportunities get rewarded with higher profits and lower costs. A good defense against threats lowers the risks that profits will decrease.

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