21919 Business Models And Strategic Planning

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21919 Business Models And Strategic Planning

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21919 Business Models And Strategic Planning

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Course Code: 21919
University: University Of Technology Sydney

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Country: Australia

To realise growth objectives firms often have to fundamentally change how they engage with customers. Business model innovation is about creating or re-thinking a business around a clear yet not always obvious customer need andaligning company resources, processes and revenue streams with this new value proposition.The aim of this subject is to provide students with the knowledge and skills required for examining, designing, testing, improving and re-designing business models. Students gain an understanding of the strategic analysis, planning and decision-making processes that are underlying the generation and invention of value generating activities as they apply to corporate and entrepreneurial organisations. 

As the competition between different companies have increased, it becomes relatively crucial to strategically plan for the future.
In this aspect, the Business Canvas Model has a major role to play and helps in understanding the working of the organization along with the different departmental tasks (Matrix, 2014).
The presentation is based on the Business Model of the Netflix and along with it the strategic tool of SWOT Analysis will be used to analyze the performance of the organization.

The Netflix company is one of he largest entertainment service providers with a customer base of more than 130 million customers.
It provides its services all around the globe in more than 190 countries.
The media service is viewed as a boom in the fast paced life of the modern globe.
With eccentric content from around the globe, the Netflix has proved to be a successful innovation with its dynamic business model.

The SWOT Analysis can be described as a rather useful tool which can be used to analyze the internal strengths and weaknesses of the company along with the factors in the external environment like the Opportunities and Threats are also examined (Gomez-Uribe & Hunt ,2016).

Strengths and Weaknesses


Brand value
Customer Base
Interesting Content


Cost of Production
Issues with respect to Copyright
Environmental factors (Netflix ,2018).
Lack of Major Markets

Opportunities and Threats


Expansion to Global markets
Technological Growth (Bradshaw, 2017).


Competition from rivals like Amazon Prime
Piracy- one of the largest threats

Key Partners
Content Partners- Those who provide content material and actors
Investment partners- Producers and Sponsors
Technical Partners- Those who perform editing and website maintaining services
Key activities
Online streaming of programs
Value Proposition
Provides free one month service
Subscription plans
Feedback mechanism

Customer relationships
Separate kids channel for the children
Niche market
Original contents
No ad streaming
Customer segments
Caters to the needs of those customers who like to view good content and have the purchasing power to pay the monthly rentals for the same.
Key resources
Strong online platform
Intellectual property

Human resource

Netflix mainly performs using the online platform.
Cost structure
Value based and cost based business model
Variable cost is comparatively low
Results in higher value proposition streams
Earns on the basis of subscription
On the basis of online streaming
It gains high revenue from the distribution channels as well.

Connecting SWOT and BMC

The Business Model Canvas of the Netflix is highly innovative in nature.
Netflix tends to regularly update its Business Model canvas based on the opportunities and threats which it observes after continuous analysis of the business environment (Amatriain, 2013).
For instance, with respect to the aspect of piracy which loomed as a threat for Netflix, the organization updated its business model and has made strict technological partners and legal considerations in order to put an end to it.
Moreover, to combat against competition , it invests in high scale content which is assured to be successful.


Based on the SWOT and Business Canvas Model, the following recommendations can be provided:
The organization can look out for global expansion opportunities
Reduction of the subscription costs in emerging countries of the Asia Pacific as per their purchasing power.
Improvement in CSR
Increase their marketing strategies to combat against competition.


Hence, it can be stated:
The company has been performing considerably well and as analyzed the different marketing opportunities which it is exposed to will help the organization to attain success.
The internal as well as external analysis of the organization helped in understanding the working of the firm and also shed light on the different recommendations which can be made to improve the working of the firm.


Amatriain, X. ,(2013). Big & personal: data and models behind Netflix recommendations. Proceedings of the 2nd international workshop on big data, streams and heterogeneous source Mining: Algorithms, systems, programming models and applications, ACM.
Bradshaw, T. (2017). “Netflix boosted as viewers outside the US tune in.” Financial Times.
Gomez-Uribe, C. A. &  N. Hunt (2016). “The Netflix recommender system: Algorithms, business value, and innovation.” ACM Transactions on Management Information Systems (TMIS) 6(4): 13.
Matrix, S. (2014). “The Netflix effect: Teens, binge watching, and on-demand digital media trends.” Jeunesse: Young People, Texts, Cultures 6(1): 119-138.
Netflix (2018). “Company Profile.” Retrieved 26 August, 2018, 

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