Ansoff Matrix of Netflix 

Netflix is an American video-on-demand service providing an over-the-top streaming platform and company. Marc Randolph and Reed Hastings started the video business in 1997 and began the online video streaming platform in 2007. Today, we’ll discuss the Ansoff matrix of Netflix; four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification of the Ansoff matrix business example.

Elements of Market Penetration Strategy of Netflix

• Offering highly innovation and creative content for the audience
• Memes on social and digital media channles
• Recommending personalized content relevant to the interests and tastes of users
• Leading top in the searches with advanced SEO strategy
• Buzz marketing for its upcoming content
• Learning from users behaviors based on their watch time and clicks

Top Selling Markets and Geographical Regions of Netflix

• Asia-Pacific – 40.5 million sbuscribers
• Latin America – 42.4 million subscribers
• Europe, Middle East, Asia – 79.8 million subscribers
• USA and Canada – 75.5 million subscribers

Latest and Best Selling Collection of Netflix

• Mending the Line
• The Equalizer 3
• Peter Rabbit 2
• On the Line
• Shirley
• The Casagrandes Movie
• The Accountant
• Damsel
• Irish Wish
• Heart of the Hunter
• Dahmar: Monster
• Stranger Things
• Squid Game

The Ansoff matrix of Netflix would focus on the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here’s the Netflix Ansoff matrix company example as follows;

Ansoff Matrix of Netflix 

Let’s discuss the four growth matrix strategy analysis quadrants in the Ansoff matrix of Netflix as an Ansoff matrix company example; they’re as follows;

Market Penetration Strategy of Netflix

The market penetration quadrant in the Netflix Ansoff matrix business example as growth matrix strategy analysis has the lowest risk rate in the growth strategy. It is because here the online video streaming platform sells its current products and services in the existing customer market. However, the video streaming market is growing, and the market penetration growth strategy is possible.

I-Various Price Packages

In order to target various segments of the existing customer market with current video shows; Netflix offers four types of price packages; Mobile, Basic, Standard, and Premium. The price packaging variety offers customers an opportunity to choose the package relevant to their needs and budget.

II-Captivating Trailers

Netflix runs aggressive marketing and advertisement campaigns for the promotion of its TV series, shows, documentaries, and films. However, the platform runs captivating videos on various channels to attract the attention of customers. It allows the video streaming platform to penetrate the existing customer market with its current shows and TV series.

III-Brand Ambassadors

Netflix has established its own production and distribution line, and various world’s leading actors, actresses, and models appear on its platform. They serve as brand ambassadors of the company by promoting their TV shows in which they’re performing along with the platform.

Market Development Strategy of Netflix

The market development quadrant in the Netflix Ansoff matrix business example as growth matrix strategy analysis has a bit higher risk rate than the market penetration strategy. It is because here you expand your video streaming market and offer your current products and services portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Global Market

Currently, Netflix has a network of 248 million subscribers and operating its video streaming business in over 190 countries across the globe. The video streaming platform keeps on expanding its geographical boundaries and customer market share with its existing product portfolio. The technology development, availability of speedy internet connectivity, and smartphone usage are complementing the growth of the company.

II-Low Price Packages

In order to increase the local market acceptance rate in different countries and regions, Netflix offers lower price package variants to attract the attention of customers. It allows the company to promote its existing shows in the newer customer market.

Product Development Strategy of Netflix

The product development quadrant in the Netflix Ansoff matrix business example as growth matrix strategy analysis has a higher risk rate than the market penetration strategy. It is because here you launch a new product service in the form new TV series, show, or film for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Produce New Shows

As mentioned earlier, Netflix has established its own production and distribution line. Since the platform operates its business in a highly competitive video streaming industry; it compels the company to produce new types of video content in different categories relevant to the needs and demands of customers. If a particular TV series has got higher rating, then the platform creates its sequel to keep up with the demands of customers.

II-Acquires License from 3rd Party

Along with producing its own content; Netflix acquires the video content streaming license from the content producers that has the highest growth potential or demand by its existing customers. It allows the video streaming platform to keep up with customer demands and maintain its rating and subscribers.

III-Data Analysis & Customer Feedback

Netflix invests a significant amount of capital resources in predicting customer behavior and market trends; in terms of their average time spent on watching particular types of shows, their clicks, and view time. It allows the company to make the right choice about producing and streaming a particular type of video content.

Diversification Strategy of Netflix

The diversification quadrant in the Netflix Ansoff matrix business example as growth matrix strategy analysis has the highest risk rate of growth strategy than all three previous growth strategies. It is because here you launch a new video streaming product or service in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

Netflix has been expanding its video service portfolio and customer market ever since its foundation. It allows the company to keep up with the customer demands, and market trends, and maintain its position in a highly competitive position video streaming industry. The platform has never compromised on the quality of content and opened towards new ideas and adopted the latest technological changes.

Conclusion: Netflix Ansoff Matrix Company Example |Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of Netflix; we have realized that Netflix is the world’s leading paid video streaming online platform. If you are learning about the online video streaming platform Netflix Ansoff matrix; then you should keep in mind the abovementioned growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification.