Netflix is one of the best internet entertainment services company. It delivers its online streaming services in more than 190 countries. Netflix has grown tremendously over the years having approximately 137.1 million subscribers worldwide.
Netflix’s strategy in 2018 promised their customers stellar service, their suppliers a treasured partner, to their investors the predictions of unrelenting profitable growth, and to the employees the appeal of significant impact. It also declared its mission of becoming the best worldwide entertainment distribution service.
Netflix has a justifiable competitive advantage owing that it has a momentous lead in over the top device dissemination. Netflix enjoys an unmatched portfolio of subscription-based digital content rights. It not only possesses the best in class technology structure but also boasts of an iconic brand in streaming video. Netflix has also introduced accessible subscription programs which are simpler and cheaper than what is available in the market. Netflix is accountable for enormous changes in consumer viewing patterns and has almost single-handedly changed the way we experience media forever.
However, the internet entertainment landscape has grown highly competitive and challenging. The challenges and alternatives include:
Rivalry amongst the prevailing competition
Netflix is experiencing competitive pressure from game platforms and social media. To maintain its competitive strength, Netflix has its innovative brand that is investing in differentiation and superior customer experience.
New Entrants
New entrants are not likely to enter the market where a dynamic industry where reputable players such as Netflix keep redefining ideals. Netflix needs to build economies of scale to lower fixed costs per item. It should frequently innovate new products and services.
Bargaining power of suppliers and buyers
Netflix should consider establishing an effective supply chain with various suppliers, develop committed suppliers whose business relies on Netflix. Rapidly innovate and develop new offerings hence decreasing customer defection.