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[TP1一刀未剪版] TP Progress Report 1 – External Environmental Analysis, Group2 …
[TP1一刀未剪版] TP Progress Report 1 – External Environmental Analysis
Five Forces Analysis of Netflix
Threat of Substitutes(Moderate)
Rapid technological advancements may result in new substitutes that could pose a threat in the future
Rely on like TV, DVDs Rentals, and Movie Theatres for entertainment
Rivalry among Industry Firms(High)
Large number of competitors
Streaming entertainment providers,video gaming providers and content producers
Low switching costs
It let customer easily transfer from Netflix to other streaming services
Threat of New Entrants (Moderate)
High reputation in the streaming service industry
These let new entrants more difficult to win over customers
High product differentiation
Offers a wide variety of original tv series for customers
Reduces sales and production cost and offers services at an acceptable quality standard
New entrants with low investment capital are less likely to enter
Bigger companies with strong financial and technical capabilities can be a huge threat to Netflix
Business model is easily to imitate
This let new entrants simply enter this industry
BARGAINING POWER OF BUYERS(High)
Low switching cost
Netflix can't charge customers high prices
Subscribers from all over the world
Maintain a pricing strategy based on customer needs
minimize price increases
BARGAINING POWER OF SUPPLIERS(High)
Fixed suppliers
Few number of supplier producing video and entertainment
Obtain contracts and licenses for distributing content from suppliers
Films are controlled by upstream suppliers
In 2012, it began to produce original albums
Netflix
The impact of Netflix
Impact traditional entertainment
Transformation of traditional industries into streaming service
Changes in viewing methods
The importance of Netflix
streaming service
Brought changes to the film and television industry
Netflix to become the industry leader in streaming platforms
"You can watch movies without going out."
PESTEL analysis
Economical
Due to the coronavirus
more people nowadays regard watching streaming videos
weaker currencies
other streaming sites are emerging
taking content away from Netflix
Netflix add more content and create their own works
Political
censorship and permissions of China
Netflix do not operate in it
Need to work on content restrictions
same films and TV shows are available in every country
U.S. regulations
Untapped potential countries
Syria
Crimea
North Korea
Technology
4K television market growth
Users can avail their content in 4K quality
Not consumed a huge amount of data.
Focus on customer experience
Using algorithms and machine
Recommend the films to the suitable subscribers
Software which automatically grades a translation
Legal
Copyright
users accessing TV content from other countries on multiple streaming devices
Netflix has to fulfill the copyright law standards
User's privacy
In this technology industry
Netflix should be aware of users' datas and personal privacy
The government enacted legal frameworks and laws to regulate this online industry
Regional restrictions
Films or shows are offensive or against the laws in certain country should be restricted
Environmental
less impact on the environment
Energy Consumption
Netflix used a huge amount of electricity to run their services
studios
content delivery network
solutions
They turned to support renewable energy projects
solar panel systems
sustainable operations
wind turbines
Social
Change in media usage patterns
Traditional screens :arrow_right: Smartphones
The most used streaming platform by users
Diverse consumer segments
Mainly customers : Millennials
Cater to the taste of the modern generation
Different societies and cultures
Spans lots of types and languages
Industry and Competitive Analysis
Product Life Cycle
Tangible Products
DVD rentals and sales
On decline stage
Intangible Products
Streaming service
On maturity stage
Netflix’s business partner
Marvel TV
animation studios, including three Japanese companies under ANIMA & COMPANY's NAZ,
Science SARU and MAPPA, and South Korea's Studio Mir.
Chunghwa Telecom
Virgin America, Aeromexico, Qantas, and Virgin Australia.
Netflix's competitors
HBOmax, Hulu, Amazon Movies, Disney+, YouTube Premium, Apple TV+, AT&T, etc.
Group2
Team members
李咨頤 Dorothy
廖柔嘉 Judy
楊怡雯 Wendy
Leader/陳仟容 Karen
周芷萱 Susan
阮皓瑄 Nancy
陳睿瑩 Irene