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Situation Analysis
Situation Analysis
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1. Imagine you are a newly appointed digital marketing manager and you have been
asked to present your views on how the company can improve its use of digital
channels. Select an existing company to focus on and give context to this
activity.
a) Streaming Platform: Netflix's major digital channel is its streaming platform, which
is available through its website and mobile applications. Users can browse and stream
content from a variety of devices, including as smartphones, tablets, smart TVs, and
game consoles.
b) Social Media Presence: Netflix is active on key social media sites such as Facebook,
Twitter, Instagram, and YouTube. They post fresh release updates, behind-the-scenes
content, trailers, and interact with their audience via comments, likes, and shares.
e) Content Marketing: Netflix has a blog section on its website where it posts articles,
interviews, and behind-the-scenes content about its original episodes and movies. This
information is intended to give value to subscribers and pique their curiosity in
upcoming releases.
2. .Make recommendations for how the company can increase and expand its use of
digital channels.
a) Social Media Interactive Campaigns: Create social media interactive campaigns that
stimulate user engagement. Contests, quizzes, polls, and user-generated content can all be
used to build a sense of community and participation among Netflix users.
b) Enhanced Personalization: Use user data and preferences to further personalize email
marketing efforts. To give more focused and relevant recommendations, leverage
dynamic content based on viewing history, genre preferences, and user ratings.
c) User-Generated material: Encourage users to develop and share material about Netflix
episodes and movies. Reactions, reviews, and fan theories are examples of this. To boost
user involvement and build a feeling of community, Netflix can curate and display user-
generated content on its social media channels.
f) Improved Content Marketing: Expand the Netflix website's blog section to include
more in-depth articles, interviews, and exclusive behind-the-scenes content. This can
provide subscribers with more value and insights into their favorite shows and movies,
hence increasing their engagement with the site.
g) Virtual Live Events and Premieres: Host virtual live events and premieres for new
series and films, allowing subscribers to participate in real-time discussions, Q&A
sessions, and interactive experiences with the cast and crew. This can increase
engagement and viewing by creating a sense of excitement and expectation.
3. Review the potential failure points in Table 4.2 to ensure that your answer to
3 does not expose the company to the risk of failure.
Potential Problem Potential Solution
Netflix's ability to provide a diverse range of To avoid the danger of content scarcity,
material is dependent on licensing deals with Netflix should maintain strong relationships
content creators and distributors. Failure to with content partners, actively pursue new
renew or acquire crucial license deals could licensing options, and engage in generating
lead to a lack of popular material, resulting in high-quality original content.
subscriber unhappiness and possibly turnover,
The streaming industry is cutthroat, with To sustain a great content gathering, Netflix
numerous large competitors struggling for should continue to spend in content
market dominance. Netflix's subscriber base acquisition and production. Furthermore,
and market position are threatened by new evaluating and reacting to market
entrants, changing customer preferences, and developments, consumer preferences, and
shifting industry dynamics. rivals' plans on a regular basis would help
Netflix stay ahead of the competition.
The technological foundation of Netflix is To protect user data, Netflix should prioritize
crucial to its success as a digital streaming cybersecurity measures, regularly execute
service. The user experience could be maintenance, and invest in a strong IT
significantly impacted by any disruptions, infrastructure. Regular testing and monitoring
technical issues, or cybersecurity breaches, can assist in quickly identifying and resolving
which could result in unhappy customers. any potential technical issues.
Any perceived lack of value in comparison to In order to make sure that its price approach
Netflix's subscription prices could result in reflects the customers' perception of value,
user unhappiness or attrition because Netflix Netflix needs review it frequently. A positive
operates in a price-sensitive market. value perception can be sustained by
Furthermore, unforeseen price rises without providing a variety of subscription options,
enough rationale may have a detrimental appealing pricing packages, and dependable
effect on customer loyalty. high-quality content delivery.
Subscribers may lose interest in the platform The user interface of Netflix should be
or abandon it if they have a poor user continually improved, with a focus on
experience, a difficult time navigating, or an simplicity, customization, and clear layout.
unintuitive interface. Regular user testing and feedback gathering
can assist pinpoint problem areas and improve
the user experience as a whole.
As a worldwide streaming service, Netflix is While continuing to place a high priority on
governed by differing legal standards and freedom of speech and creative integrity,
content limitations in various countries. The Netflix should carefully negotiate regional
availability of material may be impacted and regulatory environments, develop strong links
the growth of the market may be constrained with local authorities, and adjust its content
if local laws or demands for content control collection to satisfy local compliance
are not followed. standards.