Paper on “Evaluating Company Resources and Competitive Position”
Discuss whether this company””?s financial performance improved, remained the same, or worsened during the time period you examined.
The financial performances of the Netflix Company improved between the periods of the two years, 2011 to 2011. The financial performances of the Netflix firm improved because of the increase in the number of sales. The sales related to the purchases of the movies and other film related accessory appreciated. This implies that the firm was capable to obtain an incensement in the profitable margin of the industry. The increase for sales was attributed by the fact that the number of the customers purchasing the commodities also increased. The management on a plan to increase the sales decided to introduce a discount plan that was given to the customers (Pride & Ferrell, 2012). The discount plan was to be granted to all the consumers that were willing to purchase certain commodities from the Netflix firm. All the customers that were to purchase the commodities above a given price were to obtain the discount.
Is this firm at a cost advantage or disadvantage relative to competitors in the industry?
The firm, Netflix, is at a Cost Advantage to competitors since it is making more profitable gain than the other industries in the movie industry. The competitors such as the HBO, which is, also a worldwide known company is unable to compete with the Netflix firm because of the difference in the financials. The two organizations are unable to compete because of the increase in the financial profitable margin difference. Apparently, the Netflix firm is making profitable returns from the sales in the movie industry (Afuah, 2009). The increment in the sales of the Netflix organization is attributed by the marketing strategies of the firm. The firm is currently denoted to satisfy the customers’ demands and preferences in the readily available marketplaces of viewers.
Based on research on this company, create a SWOT analysis. How is your SWOT analysis aligned with your financial analysis?
The SWOT analysis of the Netflix firm is based on the strengths that are supporting entities to the success of the firm. One of the key strengths of the Netflix is that it has loyal customers that continuously purchase commodities from the firm. The loyal customers also contribute to the increase in the number of the customers that purchase the products and services offered by the Netflix firm (Goldfayn, 2011). The weakness of the Netflix firm is lack of the steady management that is willing to provide the firm the innovative market strategies. The management of the Netflix firm lacks the appropriate marketing manager. This is for the key reason that most of the firm is filled with the operating managers that ensure that the firm is progressing effectively.
The opportunity of the Netflix firm is that the organization can still invest in other products that will increase the movie selling industry. For instance, the organizations might decide to produce other products that are related to the movie industry such as the empty DVD and compact disks and purchase them to the customers (Goldfayn, 2011). Such products will definitely increase the sales of the organizations. The threat of the Netflix organization is the increase in the number of the film industries that produce and purchase film related accessories. The emerging number of the film industries is what attributed to the threats that are facing the movie industry. The SWOT analysis is aligned to the financial analysis since the strengths reveals in increase in the profitable margins. The opportunity also refers to the…