Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Analysis

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Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Analysis could be carried out to create various techniques utilizing the strengths of the business to obtain opportunities, conquer weaknesses and to lower the hazards. It might also be utilized to evaluate that how particular weak points resist particular opportunities and increase the dangers. The techniques prepared utilizing the Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Analysis are offered as follows;
• Utilization of strong global brand position and funds in broadening towards prospective markets.
• Distinct brand name experience might assist the business to better position itself in brand-new markets.
• Resistance in expansion in the prospective global markets motivating variety.
• High costs limits the expansion in different Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand name experience could be made use of to reduce the threat from prospective customers.
• Strict look policies could led to the consumer shift towards Victoria with high social responsibility.
• Limited target audience might resulted in a decline in the total market share of the business.
These techniques could assist the business to improvise its market position and be at the leading position in the market.

Financial Analysis


Monetary analysis for Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Analysis might be carried out to evaluate the schedule of funds to the business that might be made use of in expansion towards worldwide markets. The financial position of the business could be assessed by utilizing the information given in the case Exhibit 1. The ratios that could be considered in monetary performance analysis are given in the Table 1 below;

From the above Table 1, it might be seen that the company has a sensible monetary efficiency with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net revenue margin does not appears to be potential and the company needs to put efforts in increasing its incomes in addition to reducing its operational costs to increase its earnings margins.

Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Help

Segmentation

Many of the business's Brick and Mortar stores are located in United States including above 500 shops in practically each of the state of United States. The company has likewise a global presence in 8 different countries with its highest number of stores situated in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is most likely the 10% of its stores in the US.

Targeting


The company targets its clothing brand name to the young, tall and attractive teens and kids that are considered to be cool. This targeting policy is responsible for various differences in the company related to its rivals. The company hires great looking guys and ladies for its stores and follows a stringent appearance policy to maintain tourist attraction of good-looking people towards its shops and offer a special brand name experience.

Positioning


The company has positioned its brand as a high-end brand targeting only a specific market segment. The company with its non-traditional methods of marketing through models and agents posters its brand name image as a high-end clothing brand targeted to the cool and good-looking characters in society. Although, this market position brings in numerous elite individuals towards the brand however it injures the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Netflix: Disrupting Digital Streaming Case Help faces a lot of competitors in the market with the presence of numerous number of competitors in the market. Space is likewise thought about to be a possible competitor in regional as well as in international; markets as the company is thinking about to move in the international markets.



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