analysis Aadidas’s case and give some recommendations

the attach is an example about Netflix Company. All I need is do some research and give recommendations about Adidas. At the end, summary the recommendations in bullet points,At least 6 recommendations with some simple explanation,
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Running Head: NETFLIX COMPANY
1
Title
Student’s name
Institution’s name
NETFLIX COMPANY
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Netflix Company
Executive Summary
Netflix has various benefits to its users such as; it has no unnecessary on-screen
advertisement. Ads consume users’ data bundles making unnecessary costs on top of what he
or she has planned to spend on the Netflix website, hence making it more favourable to its
users. Netflix is also simple to use since there are no settings required but all the user is
required to do is to log in to his or her computer or smartphone Netflix. Com and access its
products. It also provides to its new users an offer of accessing its services for free a month to
make good decisions on whether to subscribe or not. The amount of television shows and
movies that its users can watch during the month has no limit.
The SWOT analysis involves the strengths, weaknesses, opportunities and the threats
which a business may experience. Strengths include; brand recognition, accessibility, and
original content, weaknesses are the cost of the content, DVD subscribers and the issue of
raising of subscription fees. Opportunities that the Netflix Company may benefit from are the
international expansion, word-of-mouth campaigns, and the original in-house programmes.
Finally, dangers which a company may experience in the long run include; competition from
its competitors, price of the content and the ISPs.
Introduction
Netflix is an American entertainment industry which was started in the year 1997,
August 29 by Reed Hastings and Marc Randolph, in Scotts Valley, California. The main
reason why it was introduced in the market is to offer to the general public video-on-demand
online, DVD through the mail and to stream media. Netflix enables its users to access its
products such as movies and series through their smartphones, smart Television, laptops, and
tablets for instance. Today, Netflix has 117.58 million users globally making it be ranked
NETFLIX COMPANY
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among the top ten world’s biggest internet industry regarding its revenue. It leads globally as
the provider of on-demand video, movies, and series in more than 183 nations (Mesce, 2015).
Summary of problems at Issue
Netflix Company is faced with problems of competition, piracy issue, issue of
substantial costs and language barrier. Netflix launch in India was not an easy thing since the
gap already was filled by its competitors such as the Hotstar (Shih & Kaufman, 2014). It
faced stiff competition from the local competitors who had enough knowledge of the Indian
culture and also their needs and preferences such as sports on cricket which had a large
number of followers in India. For the Netflix to survive in the market by being competitive, it
provided greater quality and a bigger catalogue of subscription video on demand (SVoD)
service player in the Indian market enabling it to be more competitive than its competitors
who had overtaken it regarding the Indian content.
For the Netflix Company to overcome the challenge of competition and to survive in
the market, it had to incur additional costs for generating their original content just like the
other competitors had done and for obtaining the rights for the existing content. Netflix also
incurred costs in the production of more original movies and series to market itself and to
gain more followers making it more competitive in the market without the aim of obtaining
profits. Piracy issue has been a major problem to the Netflix Company, whereby, some
people want to get free products without incurring any costs which pull it behind since the
company generates its revenue through the subscription fees paid by people to access it. For
example, those individuals who had already subscribed may share with their friends or
relatives passwords which they log in to enabling them to access the website for free.
Up to date, changes in consumer taste and preferences in the market challenges the
product giver whereby, they must keep updated to ensure they deliver what its target market
expects. For example, they should ensure that at least after every one week, there is a new
NETFLIX COMPANY
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movie or a series for the purpose of maintaining already existing customers. Without new
things on the website, some users may decide to migrate to other websites which will offer
them what they want. Thus, the Netflix Company will experience loss regarding fees paid by
the subscriber.
SWOT Analysis
Netflix Company like any other firm has its strengths, weaknesses, opportunities, and
threats. Netflix strengths include; brand recognition, accessibility, and its original content.
Netflix brand is known to many people globally, with 117.58 million users and enabling it to
become among the top ten internet companies worldwide. Netflix Application has made it
possible for its users to stream media on nearly all devices which can access the internet
(Aliloupour, 2016). Netflix began developing original content in the year 2013, with series
such as House of Cards, Orange Is the New Black, Daredevil, and Hemlock Grove whereby,
they enabled it to win awards.
Netflix has weaknesses which involve; the content cost, DVD subscribers and raising
subscription prices. The expenses of mass licensing packages and the in-house original
content production led to the company taking huge sums of debt from financial institutions
and other money lending institutions to undertake their activities effectively. As the world
evolves, the company also needs to move forward; thus, it will be forced to improve
regarding the technology they use to improve the quality of the movies and series they offer
to its users. To enhance the quality of the products they provide to the general public, the
company is required to raise subscriptions fees whereby, people do not understand, and some
may even quit from being their customers.
Opportunities available for Netflix company involves; International expansion,
original in-house programming, and word-of-mouth campaigns. The power of the Netflix to
produce more original content will enable the company to expand internationally regarding
NETFLIX COMPANY
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having sub-branches in other nations. With the original content that the Netflix company has
created and is still creating, it is building its name whereby, it is known to many people
globally thus, they will use little amount ]in marketing their business. The original content
which the firm has created has marketed the company already to the general public hence,
enabling it to have millions of users. Netflix has the potential to start-up original in-house
programmes whereby, with many households entertainment devices accessing the internet,
they can be able to thrive in the market as the subscribers will demand more content.
Netflix like any other business is faced with threats such as; competition, the price of
the content and the ISPs (McCord, 2014). Amazon Prime and YouTube have communicated
to the general public on their original content; thus, Netflix Company is worried that those
two companies may overtake them. The price of licensing and renewing those license
agreements has remained to be the biggest threat to the firm’s capability to perform at the
revenue which it generates after all the deductions have been made. Each day the Netflix
Company expects about 30% of internet traffic flow by its users. If its systems are not
operating as required concerning speed to ensure there is no traffic, the company might be
forced to improve its system which will require money. If the company has no enough
amounts to improve on its system, it might be forced to borrow from a financial institution or
institutions to cater for their needs. Failure to that, the company may lose some of its
customers.
Global Perspective and Position
Global issues involve things such as; aging issue, HIV/AIDs, atomic energy, big data
tor SDGs, children, climate change, decolonization, democracy. Also, food, health, human
rights, international law and justice, oceans and the law of the sea, population, refugees,
water, and women. With all these issues being stable, a business is likely to perform better in
the market and to achieve its set objectives. Disadvantages which may be faced by the Netflix
NETFLIX COMPANY
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company about multifunctional global issues include; an inadequate amount of local content,
language barriers, high price points in various markets and an underdeveloped process of
payment and broadband infrastructure. Netflix Company has competitors who are more
potential regarding resources that can enable them to create an adequate amount of local
content into the market enabling them to acquire more content which is localized.
The language barrier in situations where the subscriber cannot understand the
language used in the content. For example, most of the Netflix content is offered in English
whereby, not every individual can understand thus, limiting the number of users who were
willing to subscribe if they could understand the language. It is a challenge to the Netflix
Company since it is hard for them to cover all the languages which are being used to
communicate with different cultures worldwide. Netflix Company has a pricing point for
monthly subscription fees, whereby, in developed countries, the subscription fees may be
considered fair while in others may be considered expensive especially in developing
countries, 8 dollars for instance.
Netflix website is accessed by individuals online globally, and it may be difficult for
the company to lower its pricing up to potential levels for the developing countries to enable
as many people as possible to access the website. The inability to adjust subscription fees for
the developing markets depending on their capabilities is a disadvantage since there are
individuals who may be willing to access the website but it is beyond their financial power.
Underdeveloped payment process and broadband infrastructure may greatly affect the market
of the Netflix Company whereby, its mode of payment is unfavourable for some people
globally. For example, not every individual knows transacting online through entering
payment information online; hence, the process becomes difficult for some people who are
willing to subscribe to the less educated one. The company should embrace other means of
payment such as through pay bill numbers to ensure the well-being of all its users.
NETFLIX COMPANY
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Quality of Evidence
Financial problems cause the Netflix Company be unable to expand its business
globally (Hallinan & Striphas, 2016). As a result, it loses its potential customers who are
willing to access the website but due to language barriers, as they cannot understand the
language used. Netflix Company offers much of its content in English making it only
accessible by only those people who can read or listen to the conversation and understand
better. With a better understanding of a movie or a series, for instance, it makes it lively to
watch and even have that urge of having more since everything is interesting when one
understands something.
The fact is that, even if Netflix Company had a lot of money, they would never be
able to satisfy all its potential users concerning language as there exist many tribes globally
with each culture having a different language. The opinion is that Netflix Company has no
money enough to create contents which may be offered to the general public in different
languages such that, every individual may have a choice on what kind of language he or she
will listen to. The number of tribes and their languages worldwide are uncountable especially
by a single company which has so much work to carry out daily to ensure that what they
deliver to its customer is perfect.
Alternatives and Recommended Course of Action
Problems facing Netflix Company are the piracy issue, competition, mode of
subscription payment, content and language barrier. To ensure that Netflix Company
performs very well in the market, it should embrace those challenges in a manner that will
enhance its well-being. Netflix Company should offer products to its potential market which
are of high quality and at a fair subscription fee. For example, the company can offer to its
customers an ultra-high-definition (UHD) movies or series at a fair price as a way of
maintaining already existing clients and attracting new ones. Other competitors who are very
NETFLIX COMPANY
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stable in the market, may charge high prices for UHD contents as they have won themselves,
followers, hence, some people may tend to migrate to Netflix company where the same
content at a high quality is charged lower thus, competing effectively in the market.
The company should also ensure that the content which they offer to the general
public in India for instance, covers about 50% of their overall library to prevent the website
users from being disappointed. Thorough research should be carried out before the company
can create contents to ensure they are in line with what the users are expecting from them.
With better content which satisfies the customer’s needs, the company will be able to survive
in the market in the long run (Campbell, Ellingson, Notbohm & Gaynor, 2014). For an
individual to have access to the Netflix company website, payments are required to be done;
first, that is, the subscription fees.
Netflix Company should embrace as many means of payment as possible such as
payment via smartphones using a business number which will favour different individuals for
the well-being of both parties. For example, master cards and visas are not owned by
everyone hence mode of payment will deny some people that privilege of accessing the
website and also, the company will lose a potential customer. For example, people under the
age of 18 years and can pay for subscription fees to access the website are denied a chance to
watch movies or series through the website. Visas and master cards are only obtained when a
person has his or her identification card which a person owns only when he or she has
attained the age of eighteen years.
The challenge of piracy can be addressed by the company through enhancing on its
technology whereby, Netflix can be in a position to detect when a password is being used by
another user and block that particular account. Sharing of password encourages illegal
activities such as receiving services which the person has not paid which are punishable for
risking the survival of Netflix in the market.
NETFLIX COMPANY
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Implications, Consequences and Conclusion
As per my assertions, Netflix has both advantages and disadvantages to its users. The
benefits of Netflix is that it reduces boredom as an individual can subscribe and watch
movies or series during their free time. This cheaper as a person can watch at the comfort of
their home instead of going to cinemas. Also, they have the power to choose any movie of
their interest unlike in cinemas where one does not have any authority over the movie to
watch. Since Netflix can be accessed from any device connected to the internet such as
laptops and smartphones, one can subscribe and view at any time and different place.
Netflix disadvantages include time wastage whereby, in the case of students, they may
waste a lot of time subscribing and watching movies and series online instead of studying
thus, altering their performance in school negatively. An individual may forget his or her
password as a result of a stressful day or long time duration since the last time he or she
accessed the website. As such, the account may block if the person exhausts the given trials
of re-entering the password thus, making him or her start afresh the process of registration
which is not attracting.
Accounts may also be hacked by naughty people to access them for free while the
owner of the account pays for it (Valentin, 2014). Some individuals have knowledge of
technologies which enables them to alter with other people’s passwords and emails that
people use to log in thus, benefiting illegally. Sometimes, the content available on the website
may not satisfy the customer’s expectation. This is in the sense that, an individual may log in
with the need of watching a particular movie or a series, but they find that it has not been
uploaded or has been removed. Finally, Netflix is unfair to those people who watch movies
on their television and those who cannot afford to pay for subscriptions whereby, they offer
low-quality definitions and those that are not a hit. Netflix should treat those watching from
the television similar to those that pay for subscription fees.
NETFLIX COMPANY
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In conclusion, Netflix Company has contributed to the entertainment industry. It has
significantly grown to compete with other entertainment companies over the last few years
(Euchner & Ganguly, 2014). The competitive advantage of the company has been the fact
that, Netflix has been able to meet the customer demand, by targeting all age groups of the
customer scope. It has also been noted with disadvantages as it has led to the unemployment
of the people who operate the retail outlets as people assess the contents online. Hitherto, the
company has provided the customers with options to stream its content without really visiting
the local movie shops or the retail outlet which has resulted in social sustainability.
NETFLIX COMPANY
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References
Aliloupour, N. P. (2016). The Impact of Technology on the Entertainment Distribution
Market: The Effects of Netflix and Hulu on Cable Revenue. Education
Campbell, K., Ellingson, D. A., Notbohm, M. A., & Gaynor, G. (2014). The SEC’s
Regulation Fair Disclosure and Social Media. The CPA Journal, 84(11), 26.
Euchner, J., & Ganguly, A. (2014). Business model innovation in practice. ResearchTechnology Management, 57(6), 33-39.
Hallinan, B., & Striphas, T. (2016). Recommended for you: The Netflix Prize and the
production of algorithmic culture. New Media & Society, 18(1), 117-137.
Lee, S., Lee, S., & Brown, J. (2017). Growth of Global Over-the-Top and Korean Media
Market: Competition and Regulatory Policy Issues. Technology Management.
McCord, P. (2014). How Netflix reinvented HR. Harvard Business Review, 92(1), 70-76.
Mesce Jr, B. (2015). Inside the Rise of HBO: A Personal History of the Company that
Transformed Television. McFarland.
Penzel, D., Kryvinska, N., Strauss, C., & Gregu, M. (2015, August). The future of cloud
computing: A swot analysis and predictions of development. In Future Internet of
Things and Cloud (FiCloud), 2015 3rd International Conference on (pp. 391-397).
IEEE.
Shih, W., & Kaufman, S. (2014). Netflix in 2011. Harvard Business School.
Valentin, E. K. (2014). Business planning and market strategy. SAGE Publications.
Xu, Z., Frankwick, G. L., & Ramirez, E. (2016). Effects of big data analytics and traditional
marketing analytics on new product success: A knowledge fusion perspective. Journal
of Business Research, 69(5), 1562-1566.

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