IF Quiz 1

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Student ID: 180759 – BSAF 6-A

Q. 1: Write down the SWOT analysis of Netflix for international


expansion. Provide strategic suggestions based on that analysis.
Answer:
SWOT analysis includes (Strengths, Weaknesses, Opportunities,
Threats)
1- Strengths:
 Their Content is high value licensed, and award-winning original
content.
 Netflix has a history of adapting with the changes of the industry,
e.g., the change from mail order DVD to Online internet
streaming.
 Netflix supports many internet-connected devices e.g., LEDS,
Computers and mobile devices etc.
2- Weaknesses:
 Need to strike strong deals with content owners.
 High subscription prices.
 Low profit margins due to the cost of international expansion and
currency fluctuation.
 Dependence on content licensing costs and relationships with
distributors.
 Potential dependences on regulations and laws in different
countries.
3- Opportunities:
 Entry into Regional language content
 Netflix is still not available in China- more international expansion
 Finding local partners to further international expansion
 Capitalizing on its exiting user base
 Scale and popularity will help potentially lower their content
licensing fees and can potentially increase their average revenue
per user per month.
4- Threats:
 Local & International competition like Amazon Prime, YouTube
 Black market around the world i.e., Piracy
 Rising content costs, limited access to content due to stiff
competition with cable tv's and conflicts with content owners.
 Competition and price wars between streaming services.
 legal issues with local authorities and content providers because
of licensing and violation off regulations.
Strategic suggestions:
 Make the service available to areas where its competitors are not
present, and make prices affordable without decreasing the
content quality.
 Use procedures to ensure content safety from black market.
 Supporting the legal systems and regulations of authorities in
different areas.
Q. 2: How would you recommend that Netflix overcome its
challenges in the international market?

Answer:
I think Netflix should use the following methods to overcome its
challenges:
 Partner with Multichannel Television Provider
(Netflix will be able to provide its members with access to
additional TV series, offering exclusive content, it is a necessity for
Netflix to continue to expand its content library and make it
accessible across multiple channels.)
 Continue International Expansion
(There are many territories that Netflix need to target like China.
This will provide advantage to Netflix, related economies of scale,
and early mover benefits in many international markets.)
 Leverage offline streaming Technology
(Allowing customers to offline buffer content to view when
internet is unavailable will attract more customers. Customers in
India often don’t get to view online streaming content in many
areas as it consumes maximum bandwidth.)
Q. 3: Give an overview of Netflix current position of worldwide
business. (latest 2020/2021)

Answer:
 Netflix currently has 203.66 million subscribers as of today.
 Netflix generated $24.99 billion in 2020.
 Netflix has 5,415 content titles in their US library.
 63.7% of Netflix subscribers are based outside of the US &
Canada.
 In 2020, 80% of the most watched original series in the US
belonged to Netflix.
 Netflix subscribers spend an average of 3.2 hours per day
watching content on the platform.
 Netflix’s mobile app for iOS & Android was downloaded 19 million
times in January 2021 alone.

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