SWOT ANALYSIS Amazon Prime
| Strengths | Weaknesses | Opportunities | Threats | |
|---|---|---|---|---|
| Internal Factors | ||||
| 1. Content Library | Amazon Prime has a vast library of movies, TV shows, and original content. | 1.Original Content Quality | Opportunities to invest in more exclusive and original content to compete with Netflix. | 1. Competition from other streaming platforms like Netflix, Disney+, and HBO Max. |
| 2. Amazon Ecosystem | Integration with Amazon’s e-commerce platform provides additional benefits for Prime members. | 2.Geographic Limitations | Expanding its global reach by entering new markets and targeting international audiences. | 2. Rising Costs of content acquisition and production. |
| 3. Prime Membership | A large base of Prime members provides a ready audience for streaming content. | 3. Limited International Reach compared to Netflix. | 3. Advertising Revenue by offering a free tier with ads and leveraging Amazon’s advertising platform. | 3. Regulatory Challenges related to antitrust and content censorship. |
| External Factors | ||||
| 1. Market Growth | The streaming industry continues to grow globally. | 1. Licensing Agreements that may limit content availability. | 1. Technological Advancements like 4K streaming, AR, and VR experiences. | 1. Piracy and Content Theft impacting revenue and viewership. |
References for Amazon Prime:
- Reuters. (2021). Amazon Prime Video Aims for More Than 100 Local Films a Year in India.
- Statista. (2021). Number of Amazon Prime Video Subscribers Worldwide from 2016 to 2020.
Netflix
| Strengths | Weaknesses | Opportunities | Threats | |||
|---|---|---|---|---|---|---|
| Internal Factors | ||||||
| 1. Content Originality | Netflix produces critically acclaimed original content. | 1. Debt Burden from continuous investment in content creation | 1. International Expansion by entering new markets and catering to diverse audiences. | 1. Intense Competition from other streaming platforms and traditional media companies. | ||
| 2. Subscriber Base | A large global subscriber base provides a consistent revenue stream. | 2. Content Licensing Costs can be substantial. | 2. Product Innovation such as interactive content or gaming integration. | 2. Content Quality and Viewer Preferences changing over time | ||
| 3. Data-Driven Approach | Utilizes user data for content recommendations and personalized experiences. | 3. Content Rotations as licenses expire. | 3. Monetizing Intellectual Property through merchandise and spin-off opportunities | 3. Net Neutrality Regulations impacting streaming quality and costs. | ||
| External Factors | ||||||
| 1. Streaming Industry Growth | The streaming market continues to expand globally. | 1. Content Competition from other streaming platforms and traditional TV networks. | 1. Emerging Markets with untapped potential for growth | 1. Copyright and Content Licensing Disputes affecting content availability. |
References for Netflix:
- Variety. (2021). Netflix Plans to Spend $17 Billion in Cash on Content in 2021.
- Statista. (2021). Number of Netflix Subscribers Worldwide from 2011 to 2020
