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Surf Shop Comparison - Essay Example

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This distinctive competence enables the company to lower down its prices and thereby retain its subscription base (Netflix, 2014).
“Our core strategy is to grow our streaming subscription business…
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Surf Shop Comparison
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Netflix Netflix Core Competencies Netflix The core competency of Netflix is its largest customer base around the world. This distinctive competence enables the company to lower down its prices and thereby retain its subscription base (Netflix, 2014).Netflix’s planning in light of Mission and ValuesMission Statement of Netflix:“Our core strategy is to grow our streaming subscription business domestically and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our consolidated net income and operating segment contribution profit targets.

” (Netflix, 2013)The company has adapted to the changes taking place in the industry in a rather quick manner, and in light of its mission statement, i.e. to grow its streaming subscription, the company has planned to replace its old services with the new ones, such as replacing linear TV with a much more user friendly alternative (Netflix, 2014).Potential Internal and External Factors Influencing NetflixThe increased competition in the domestic and international market and the new giants entering the DVD and online streaming market are some major external factors which may influence Netflix’s operations.

Moreover, the internal skills developed by Netflix are imitable and thereby an internal challenge is also there (Netflix, 2013).S WOT Analysis of NetflixFollowing table presents the SWOT analysis of Netflix:StrengthsWeaknessesNetflix enjoys the highest number of subscribers in the world, i.e. more than 48 millionNetflix’s brand value has grown consistentlyNetflix’s services are user friendlyNetflix has the largest DVD selection in the world (Netflix, 2013)Netflix shall consider minimizing the fluctuations in its total subscribersNetflix has significant dependence on third parties, such as AmazonNetflix shall ensure that there is no gap or lack of streaming content on its portal, so as to remain competitive (Netflix, 2013)OpportunitiesThreatsNetflix can expand more internationallyNetflix can increase its capital and thereby expand its operationsNetflix can improve its advertisement activitiesNetflix understands that there is a considerable growth in online visitors searching for better streaming options (Netflix, 2013)Due to entry of Amazon and Apple as competitors, Netflix face significant competitionOther major IT giants, like Google and YouTube, may also pose threats to the operating ability of the company in futureThe issue of off-balance sheet liabilities for Netflix is also a major threat which may influence its future earnings and profits (Netflix, 2013)ReferencesNetflix. (2013). Form 10-K.

Delaware: Netflix Incorporation.Netflix. (2014, May 28). Overview. Retrieved from ir.netflix.com: http://ir.netflix.com/tflixencing Netflix PetroleumFactors Influencing British Petroleum0000000000000000000000000000000000000000000000000000000000

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