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Competitive positioning implies the correct understanding of factors influencing the target audience and the market. This includes customer segments, competitive analysis, a method for delivering value, market profile, and current demands. For instance, correctly realizing these factors, Netflix can position itself by establishing price, offering specific context, and focusing on a particular audience attracted by these elements. It might guarantee the generation of a significant competitive advantage.
At the moment, Netflix has several most powerful competitors based on such attributes outlined above, and focusing on quality and choice. Applying these aspects, it is possible to outline the central rivals, such as Disney+, Amazon Prime, HBO Max, Hulu. The following table shows the major findings:
These services provide similar services and operate within the same market. Hulu can be rated by 4 as the quality suffices demand, while choice is not significant. Additionally, it offers a limited number of movies and has less effective customer service than other companies. Disney+ has the rank 10, as it also provides high-quality and diversified content to all viewers. It suggests about 15,000 movies and 2000 TV shows to viewers, with a comparatively low price per month ($7,99). Amazon Prime is in the middle with the rank 5 because of lack of choice related to the original titles (only 70) and limited quality of offered products. Hulu is another provider, with a limited diversity of products (only 900 movies) and comparatively high quality of new series and titles (3,000). Finally, HBO Max is another strong competitor rated 8 as it offers various products characterized by high quality. It has about 1,800 movies and 400 TV shows in the library; however, the original content lacks diversity as only 31 titles were created.
Regarding the existing competition trends, Netflix should focus on diversifying its products to meet customers needs and ensure the proposed content has high quality. It will help to remain attractive for most clients and avoid losing loyal clients because of the absence of the desired features. At the same time, it will help to generate a competitive advantage and move forward. At the moment, the product offered by Netflixs major attributes, such as quality and variety of choice, can be rated 9 and 7 correspondingly. It has one of the highest numbers of original titles (2,400); however, their selection and diversity might be limited in some cases. For this reason, it is vital to continue developing these aspects to meet current demands. The other points compared during the research are at the desired level, meaning that Netflix offers multiple opportunities for its clients.
The following perceptual map shows the position of Netflix and its products. The selected attributes are quality and the scope of choice. The place on the map is determined regarding the number of offered movies, TV shows, original content, and its quality represented in the table above. The significance of these factors for the market is evidenced by the fact that the presence of multiple companies in this segment makes clients more focused on looking for specific content to meet their demands. Under these conditions, to win the competition, providers should cultivate these elements and ensure they meet the relevant requirements. In such a way, the companies presented in the perceptual map can be viewed as relevant Netflix competitors. They offer products with different characteristics to their clients and try to generate an advantage by focusing on a particular element. There are also differences in attributes selected for comparison; however, the brands remain powerful and relevant as they have a loyal audience.
The current position of the direct competitors regarding these attributes can be described as follows. Amazon prime has 6 quality and 5 in choice, as it offers only 70 original titles with medium quality. Hulu has 8 regarding quality and 2 for options, which is explained by the inclusion of high-quality movies but the lack of fresh products. Disney+ can be characterized by high ranks in all dimensions, 10 in terms of quality and 9 regarding choice. The company creates outstanding products and offers about 15,000 movies with 56 original titles. Finally, HBO also suggests the appropriate products (8 quality) while the choice can be more diversified (7) as at the moment it has only 31 original titles, which limits clients. Altogether, the given analysis shows the existing competition trends for Netflix and helps to understand its current position. The company should focus on cultivating selected attributes in its products to increase revenue and acquire new loyal clients.
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