Netflix Internal Analysis

Strengths

Entry timing & First mover

Netflix entered the market for DVD rentals at a time when there were few other competitors in the market, allowing them to establish their brand name and image for providing a unique service. They were the first to offer DVD rental by mail and this allowed them to offer a greater variety of DVDs to consumers as compared to their competitors at the time, as DVDs were relatively new to the market. Combined with its successful business model, Netflix's early entry has allowed it to maintain a high relative market share in the online DVD rental industry.

Unique and very large selection of DVDs:

Netflix has the largest and most diverse collection of DVDs out of any competitor. They have more than 100,000 titles, including foreign films and independent films that are usually not carried by other distributors such as Blockbuster Video and Wal-Mart.

Streaming capabilitiies

Netflix can be run on over 200 different devices, which allows it to have an excellent performance, streaming service available on laptops, cell-phones, tablets, game consoles and internet-enabled TVs.

Customer Service

Customer service is a key to a successful business now a day, that why Netflix has over 43 shipping centers all over the USA. Having 43 shipping centers allows Netflix to ship the DVD's in just one business day via United States Postal Service. Netflix uses marketing as a key driver to generate new subscribers. Netflix offers a free one month trial whit no obligation. This key tool creates new customers since when a subscriber signs up they are in love with the service and never call back to cancel.

Networked connections with many partners

From the very beginning of its entry into the market, Netflix understood the importance of making partner- ships with the movie industry, the electronics industry, and retailers. Netflix's name was spread widely through promotions with complementary products, such as DVD players and movie websites. Netflix has alliances with several major companies in order to obtain movie rights. Netflix has recently formed alliances with "Miramax"(D.Thompson), to cater to Mexico, Latin American and the Caribbean. Other alliances include, Starz, Dreamworks, The CW and Closed Captioning. For Netflix, forming alliances with companies to obtain movie rights is essential for their survival and growth. One of the main advantages Netflix has over its rivals is the fact that they are able to now cater to Latin American countries because of the newly formed alliance with Miramax. Alliances help open up important new market opportunities.

Award-winning website

Netflix's website boasts many