Before we move onto the SWOT Analysis, it is imperative to first take a look at the company's

background.
Netflix was founded in the year 1997 by Reed Hastings and Marc Randolph in California, USA.
Initially, Netflix sold DVDs and offered a DVD rental service to its customers. Today, it is a
content platform and a production company. It offers a subscription-based streaming service to
its customers that includes a variety of content, including the content that it produces in-house.
It offers its streaming service to subscribers in over 190 countries.

Strengths
1. Exponential Growth – In the past ten years, Netflix has become an influential brand
for online streaming content not only in the US but across the world.

2. Brand Reputation – Netflix has risen to become a household name within a short
period. In 2019, Netflix was ranked at #4 top regarded companies by Forbes.
3. Global Customer Base – Netflix is serving over 190 countries across the world,
having a global customer base. There are over 167 million subscribers of Netflix, and
it gives the company a strong bargaining power with the studios for securing exclusive
content.
4. Originality – Another one of its strength is that Netflix has been producing original
content over the years with the highest quality. Some of its shows like  Tiger
King, Stranger things, Money Heist, Narcos, Mindhunter, and Orange Is the New
Black became so popular that its subscriber count kept increasing over the quarters.
5. Adaptability – Netflix adapted to various technologies instantly by providing
streaming on all internet-connected devices like personal computers, iPads, mobile
devices, and televisions. Due to this, their business grew immensely over the years.
6.  Affordable Pricing – The pricing strategy of Netflix has given it leverage over its
competitors. The plans that Netflix has designed are affordable and offer great value.
Subscribers can watch unlimited movies, either on DVD or streaming for an affordable
price of $8.99 a month. It is less expensive than cable movies or going to the cinema
and also offers a wider selection.

Weaknesses
1. Limited Copyrights – Netflix does not own most of its content, and this affects the
company negatively. The rights taken from other studios expire after few years, and that
content starts appearing on other sites.
2. Increasing Debt – Netflix is serving its diversified content in many countries around
the world which requires huge amounts of money. Netflix keeps adding to its long-term
debt to fund new content. As of April 2020, Netflix reported $14.17 billion in debt and
plans to raise $1 billion more through a debt offering. The increase in debt every year is
a major weakness.
3. Lack of Original content in several countries
4. Over-dependence on North America Market – Even though Netflix operates globally,
it relies heavily on the North American market. In the fiscal year 2019, Netflix reported
$10.05 Billion revenue from North America, which represents about 50% of its total
revenue ($20.15 Billion). This a major weakness because the North American Market is
nearing saturation
5. Rigid Pricing – Customers demand customized pricing with more options.
Unfortunately, Netflix’s pricing model is rigid with only three tiers, Basic, Standard,
and Premium. The lack of different options has contributed to stagnation in the number
of new subscriptions.

Opportunities
1. As Netflix has a brand reputation, the great demand for OTT platforms in the current
market can allow the brand to expand.
2. Since Netflix is signing up for exclusive Netflix-only content, they can bring in other
product lines, including video games, comic books, and more.
3. Netflix is already a global presence. They can strengthen their subscriber base by a
strategic partnership with local markets that will help them to capture the local market.
4. The company can choose to work on new concepts that are better than other OTT
platforms. Netflix has already said no to the traditional advertising-based business
model, which is an opportunity for them to provide good customer service.

Threats
1. COVID-19 has affected the reproduction of new original shows and movies. Like
most parts of the entertainment industry, Netflix is also affected by the pandemic.
Gradually with normalization, the condition will improve.
2. The government regulations in certain countries can hold them from expansion.
3. Netflix is suffering majorly from content piracy. Many people choose to watch the
pirated version of the original series available without paying, threatening the company.
4. Another reason for fewer customers for Netflix is that many people share one account
simultaneously.

Key Takeways

Netflix SWOT analysis reveals that there are specific weaknesses of the company.
The company can bring in new policies to strengthen their weak areas. At the same
time, they can consider the opportunities supported by their strengths to ensure growth.
Based on Netflix SWOT analysis, here are some recommendations for the brand:

1. Netflix can bring in other content as a part of their original or exclusive content, including
comics, small series, stand-up comedy pieces, anime, and more.
2. The firm can also try to recover its position in the local market by joining hands with local
associates. The company can also make space for unique content for communities that
will appeal to them.
3. Netflix needs to take decisive steps against piracy. They can use technology to stop the
stealing of their copyrighted content.