Analysis of company (Netflix) Coursework Example | Topics and Well Written Essays - 1750 words

Analysis of company (Netflix) - Coursework Example The company was established in 1997 by Reed Hastings. Its headquarters are located in Los Gatos, California. The organization offers proprietary recommendations and merchandising services that aid the subscribers to choose from the extensive digital title library. The company’s mission is becoming an early novel technology adapter that will satisfy consumers’ exact wants. The vision of the organization is to endeavors to be the best international entertainment distribution service. It also wants to; generate accessible markets particularly, to filmmakers; license entertainment content globally; and assist content creators globally to find an international audience. Currently, to achieve its vision, Netflix Inc. applies an extensive differentiation strategy. The differentiation was established through reducing the general prices of renting DVDs, improving customer satisfaction, providing all-inclusive customer service and constantly innovating throughout the years (Resea rch and Markets 2012, n.p) . PART 1: EXTERNAL ANALYSIS The purpose of this section is to analyse the external environment of the company. This includes the macro environment, the industry analysis, and SWOT analysis. 1.1 Macro-Environmental Analysis Like other organizations in the industry of movie rentals, Netflix is cause to experience technological, social, economic, and political macro-environmental factors. Political and Legal factors – with regard to these facets, the company could be influenced through altering laws relating to copyrights of some content types, for instance television and movie shows that Netflix depends on to offer the clients (Krengel et al. 2010, p. 23). Economic factors – To sustain a competitive advantage, Netflix is compelled to price aggressively against competitors. The Company maneuvers in an industry that depends principally on the consumer’s disposable income. If economic increase were to dwindle, while there was a negative inf luence of the consumers’ purchasing power, the organizations in the industry would experience the negative impacts of the reduced purchasing power first. Social factors – The Company depends on the movie popularity among the target market segments. The consumption becomes less popular among the older demographic as the average population age continues to become older. This leads to negative influence of the business. Business could be negatively influenced if the online movie consumption became un-preferred among large population segments. Technological factors – Technologically, since Netflix is an internet-based company, it must compete with the continuously evolving internet, since the industry progresses toward online consumptions (May 2010, p. 21). 1.2 INDUSTRY ANALYSIS: Porter’s Five Forces Rivalry among Organisations Direct rivals threaten the task environment of Netflix. Exclusive content contracts present as a threat to the company’s task environment. This presents as a constriction for the Netflix access to particular content (Thompson & Martin 2010, p. 92). Entry of Novel Competitors Entry of novel of