In this article we will construct the BCG matrix of NETFILX, INC, BCG matrix is used by many conglomerate to analyze their multiple segments and products. It helps them to develop strategies for their business and product portfolios. Keeping in mind the industry sales growth rate and market share of the products and segments. BCG matrix was developed by private consulting firm based in Boston to help the conglomerates, which deals in different businesses and products. It helps them to create strategies for each business and product according to their performance in market. It is the four quadrant matrix, each quadrant has been assigned different name. Which are as follow, cash cow, dog, question mark and stars.
Netflix is the internet television network which is believed to be largest network in the world. It has 117 million streamers in 190 countries all over the world. Streamers enjoy 140 million hours of TV shows, documentaries and films daily on Netflix. Netflix launched its streaming service in 2007 and they are the pioneer of streaming service. Currently it has the best streaming service in the world. The company has three segments which are as follow, domestic streaming, international streaming and domestic DVD. Netflix compete with other video provider such as, Amazon, Hulu, Disney, Apple and century Fox. After the brief introduction of company and BCG matrix, now it’s time to construct BCG matrix of Netflix and see which segments requires which strategies and which segment lies in which quadrant of BCG matrix.
Stars
Those segments comes under the category of stars which have high industry sales growth rate and high relative market share. Netflix international streaming segment comes under the category of stars. Netflix market occupy the highest place in the market share of international streaming. Thanks to the quality of streaming and contents Netflix is on the top of international streaming list. The contents which boosted the subscribers of Netflix are as follow, The Crown, Stranger things, Orange is the new black and 13 reasons why, Glow and last but not the least house of cards. Domestic streaming segment of Netflix also comes under the category of stars because in United States more and more people are shifting from traditional cable networks towards Netflix streaming, the industry sales growth is increasing rapidly and Netflix occupy the fare share in the domestic streaming market around 60 %. Which is increasing as the time passes by, both the segments of Netflix are doing well in terms of market share.
Cash Cows
Cash cows are those segment which compete in low growth industry and have high relative market share. The industry growth rate declined over the years because many people now prefer to stream online. However, Netflix still have the highest rate of subscription in DVDs. Netflix should explore other markets where blue Ray is still in demand in that way they can increase their market share. But still DVD segment of Netflix is leading domestically.
Question Marks
None of Netflix segments come under the category of question mark. Those segments comes under the category of Question mark, which have low relative market share and operates in high sales growth industry.
Dogs
None of Netflix segments come under the category of dogs. However, those segments are included into the category of Dogs, which operates in low sales growth industry and have low relative market share.
Recent Comments