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Case Analysis of Netflix

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Preparing an Oral/Written Case Presentation

Based on the outline provided I need to put together a written presentation on the company Netflix:

General Outline:

I. Strategic Profile and Case Analysis Purpose

II. Situation Analysis
A. General Environmental Analysis
B. Industry Analysis
C. Competitor Analysis
D. Internal Analysis

III. Identification of Environmental Opportunities and Threats and Firm Strengths and Weaknesses (SWOT Analysis)

IV. Strategy Formulation
A. Strategic alternatives
B. Alternative evaluation
C. Alternative choice

V. Strategic Alternative Implementation
A. Action Items
B. Action Plans

The Deadline cannot be extended, which is why the credits have been increased.

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Solution Preview

I. Situational Analysis:
Netflix is an American provider of on-demand internet streaming media available to viewers in the United States and several other countries. Its products are video streaming, online DVD, and Blu-ray Disc rental. The movie industry is charging more and is becoming more expensive. Netflix has moved towards TV episodes. The customers like the idea of watching past TV episodes and creating its own original shows for the streaming service. The problem that Netflix has been facing is that movie production houses have increased their prices; however, Netflix cannot increase subscription rates. Its customers will not accept a price rise. The purpose of this analysis is to identify which strategy is appropriate to Netflix's current position and to lay down the plan for implementing the strategy.

II Situational Analysis:
A.The current political environment is stable. The tax policy, employment laws, and trade regulation do not directly disallow the business model of Netflix. The taxation rate is moderate and Netflix does not have to pay sales taxes in all states. The current economic growth is encouraging and the expansion phase of the business cycle has commenced. The interest rates are attractively low and the exchange rate of US dollar is improving. Currently the inflation rate is under control. The people have a positive attitude towards the Netflix business model. There is emphasis on buying legal content from the internet. The Netflix technology is available with competitors and internet access and quality of internet is likely to improve.
B Currently, internet is getting more reliable and easily available. There is an increase in tablet and Smartphone viewing. Smart TV adapters are getting better and cheaper. Most users, who want ...

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