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Netflix: Streaming Away from DVDs

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The objective of this case is to analyze the Netflix’s industry structure, to conduct SWOT analysis, and to define its competitive advantages. In addition, students can think about the important question ‒ whether Netflix’s growth is sustainable.

The assignment is limited to 5 pages (double spaced): No introduction or conclusion. Due Date: Oct. 21 (for Lec 01), Oct. 23 (for Lec 05)

1. Industry Analysis (about 2 pages) a Using Porter’s 5-Forces Model, analyze the industry (Internet television network: online streaming and DVD-by-mail) structure.

You need to describe (1) who are they? (2) level of threats & bargaining power, and (3) rationale for your judgment for each force b. You need to make a brief conclusion (e.g. a few sentences) about the overall level of industry-level profitability. The conclusion should be based on your 5-Forces model analysis.

2. SWOT Analysis (about 1 page)
Conduct SWOT analysis for Netflix and provide suggestion.
You can make a short table for SWOT analysis (sing-spaced)
Suggest any feasible S-O, S-T, W-O, W-T strategies c: (one example will be sufficient).

3. Competitive Advantage(s) (about 1 page)
Define Netflix’s competitive advantage(s).
You need to use V-R-I-N framework to define Netflix’s competitive advantages. The framework should be reflected in your writing.

4. Sustainability of Netflix Success (about 1 page)
Provide your opinion about the question: “Is Netflix’s growth sustainable?”. Also, make some suggestions to make Netflix’s success more sustainable. Note:

a. Page allocation (2-1-1-1) is only for recommendation, not requirement. Please, reasonably adjust it with your discretion.

b. Example of Airline industry for your understanding

Who are they?
Level of Threats / Bargaining Power
– Airline manufacturers (Boeing, Airbus)
– Oil companies (for Fuel)
– High concentration in supplier industry
– Lack of substitutes products

(please, use concepts discussed in the class)

c. SWOT analysis
S-O strategy: How to use Strengths to maximize the Opportunities you identified? S-T strategy: How to use Strengths to minimize the Threats you identified? W-O strategy: What actions can you take to minimize Weakness by using the Opportunities you identified? W-S strategy: What actions can you take to minimize Weakness by avoiding the Threats you identified?

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