How does the concept of Porter's Five Forces apply to Netflix's situation?

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. These forces are: Competition in the industry; Potential of new entrants into the industry; Power of suppliers; Power of customers; Threat of substitute products. In the case of Netflix, the bargaining power of buyers has increased due to the abundance of streaming choices. Customers can easily substitute Netflix for another form of entertainment or switch to a cheaper service. This has led Netflix to pivot and spend less on original TV content and more on new growth areas like video games.

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But now, with an abundance of streaming choices, the bargaining power of buyers has become higher. Viewers can easily substitute Netflix for another form of entertainment or switch to a cheaper service, and the consumer has higher leverage, so Netflix has pivoted to spend less on original TV content and more on new growth areas like video games.

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Competitive Strategies

Do you feel trapped to outdo competitors? Better strategies can build a stronger defense against competition and generate higher ROI on your strategic...

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