Okay, so I was messing around with this business analysis thing called “Porter’s Five Forces” the other day, and I figured I’d try it out on Netflix. You know, to see what’s what with their whole deal in the streaming world. It was a pretty interesting little experiment, to be honest.
I started by just jotting down the five forces as they are: competition, new kids on the block, supplier power, customer power, and those pesky substitute products. The usual suspects. Nothing fancy, just wanted to get a feel for the landscape. Just use my pen and notebook to write something down.
First, I tackled the competition part. I listed out all the big streaming services I could think of – Hulu, Amazon Prime Video, Disney+, HBO Max, you name it. Then I started scribbling down what makes each one tick, what they’re good at, and what they’re not so good at. I also took a peek at their pricing and what kind of shows and movies they have. It was like, who’s got the best stuff for the best price, you know?
Next up, I thought about new entrants, which is just a fancy way of saying who else might jump into the streaming game. I looked at some smaller streaming services that are trying to make a name for themselves and also at big tech companies that might decide to throw their hat in the ring. Like, could Apple or Google come up with something to rival Netflix? I also thought about the fact that it costs a boatload of money to create original content, which might make it hard for new guys to compete.
Then it was time to think about suppliers. This one was a bit tricky. At first, I was like, who are Netflix’s suppliers? But then I realized it’s the folks who make the shows and movies – the studios, the production companies, the writers, the actors. I started digging into how much power these guys have. Like, can they demand a huge chunk of Netflix’s profits? It seems like Netflix is trying to get around this by making more of their own stuff, which is pretty smart.
After that, I moved on to customers, which is us, the viewers. I thought about how easy it is for us to switch to another service if we’re not happy with Netflix. And let me tell you, it’s pretty darn easy. Plus, there are so many other things we could be doing with our time, like scrolling through social media or playing video games. So, Netflix really has to keep us hooked, or we’re gone.
- Competition: Checked out the big names and their game plans.
- New Entrants: Looked at who else might join the streaming party.
- Suppliers: Figured out who’s really running the show behind the scenes.
- Customers: Realized we, the viewers, have more power than we think.
- Substitutes: Noted all the other things vying for our attention.
Finally, I looked at substitutes, which are basically anything else that people might do instead of watching Netflix. This could be anything from reading a book to going for a walk. I realized that Netflix isn’t just competing with other streaming services, but with literally anything that can take up our free time.
After I did all this, I just sat back and looked at my notes. I realized that doing this whole Five Forces thing on Netflix was kind of eye-opening. It gave me a much better understanding of the challenges they face and the things they need to do to stay on top. It’s like, they’re not just competing with other streaming services, they’re competing with everything!
Here’s the deal: it looks like Netflix is in a pretty good spot right now, but they can’t afford to get lazy. They need to keep making great shows and movies, keep their prices reasonable, and keep finding ways to keep us coming back for more.
So what’s the point of all this?
Well, for me, it was just a fun little exercise to see how this whole Five Forces thing works in the real world. But I think it also shows that even a big company like Netflix has to constantly watch its back. The streaming world is a tough place, and only the strong will survive.
