Netflix is a globally well-known streaming service that gained fame and recognition from the audience because of its numerous shows and film releases. Still, the brand has specific advantages and disadvantages in the work structure and corporate policies. Throughout its existence, there have been several scandals and issues regarding the decisions and actions of the organization. Therefore, the paper aims to identify and analyze Netflix’s competitive advantage, strengths and weaknesses, policy issues, and incidents.
Netflix’s competitive advantage
Regarding the company’s competitive advantages, several of them contribute to the contribution to the successful promotion. Firstly, Netflix continuously grows and expands its influence outside the United States. Thus, people in almost every corner of the planet at least hear about the organization and are more likely to choose it from other streaming services. Secondly, the corporation developed different subscription plans that suit most viewers, whether they have a high or low budget. Comparing Netflix’s prices to how much the competitors like the Disney+ channel, it is fair to say that the company has the lowest prices (Netflix SWOT Analysis 2022, n.d.). Moreover, due to the service focused primarily on the customers and their needs, the company adapted its technologies so that users could watch their favorite shows on any electronic device. Undoubtedly another factor that adds to Netflix’s even more competitive advantage is the brand’s reputation known for its original and creative content.
Nevertheless, despite all the positive sides of the corporation’s work, it has been involved in some scandals. For example, the public was dissatisfied with the show “13 Reasons Why” because of the graphic and traumatic scenes it contained (Davies, 2021). General people and psychology specialists expressed frustration and criticism towards the series because they thought that some moments from the show could damage adolescents’ mental health. “The Crown” also caused controversy when the media revealed that the lead male actor had higher pay than his female co-star (Davies, 2021). That was a major scandal that involved the problem of equality and fair compensation in the workplace.
However, to achieve this considerable success, the organization actively collects and uses the subscribers’ data to increase the quality of work, and in the process, it can cause specific issues. Netflix tracks such types of data as the user’s location, mobile phone or other devices, personal information, including credit card details, and even the browser used (O’Flaherty, 2021). Moreover, all the information is kept for many years after it was first received, which feels disturbing to some parts of the public. Although it is used for general improvement and more accurate suggestions to the viewers, it raises concerns.
Netflix’s threats and disadvantages
In addition, Netflix has some external threats and disadvantages that lead to numerous problems. Despite the organization’s popularity, it constantly experiences pressure because of other streaming platforms (Netflix SWOT Analysis 2022, n.d.). Some people do not even try to choose any digital services and prefer to download content from pirated websites. Due to this fact, Netflix loses a significant amount of money and income. Moreover, the corporation does not fully own the rights to all the series and films that it streams. After the agreements expire, the shows become available on other websites, and the streaming platform stops being exclusive (Netflix SWOT Analysis 2022, n.d.). Another negative factor is that Netflix still does not attempt to promote sustainability in its work and ignores green alternatives (Netflix SWOT Analysis 2022, n.d.). Unlike other companies that actively use renewable energy, the organization keeps leaving a significant carbon footprint.
Overall, Netflix is a relatively successful corporation that earned global recognition and widely expanded its influence. Particular advantages such as low prices, originality, and adaptability help attract the audience and keep them loyal to the streaming service. However, Netflix could not avoid some ethical scandals considering shows on the platform, privacy issues, and lack of sustainability. Therefore, the organization continues to remain successful but still has some crucial problems that limit its abilities for development.
Netflix SWOT Analysis 2022. (n.d.). Business Strategy Hub.
Davies, R. (2021). Netflix’s biggest scandals. The List.
O’Flaherty, K. (2021). All the ways Netflix tracks you and what you watch. Wired.