Netflix’s Strengths and Weaknesses (Internal Analysis)
Strengths (Core Competencies/Competitive Advantages):
1. High brand equity of Netflix
2. Large platform of content producers and consumers
3. Capacity for original content creation

Weaknesses:
1. Imitable business model
2. Dependence on content producers
3. Dependence on Internet service providers
Growing Operational Costs – The original content produced by Netflix gives it a competitive advantage, but the cost of supporting this content keeps growing. The projected spending (June 2018) on original programming by the Economist for this year was 12-13 billion USD. The amount has exceeded from the last year’s spending.
Limited Copyrights – Netflix does not own most of its original programming, and this affects the company negatively. The rights taken from other studios expire after few years, and that content starts appearing on other sites.
Increasing Debt – Netflix is serving its diversified content in many countries around the world which requires huge amounts of money. Netflix keeps adding to its long-term debt to fund new content, and as of September 30, 2018, it reported $ 34 billion in long-term debt. The increase in debt every year is the sign of a significant weakness.
Lack of Green Energy – Netflix has still not utilized renewable energy and hasn’t created a business model to promote environmental sustainability. Contrary to this, tech companies like Amazon, Google, Apple, and Facebook have already started using renewable energy to help sustain the environment. The four tech giants have committed to using 100% renewable energy for their businesses. The lack of green energy utilization has a negative impact on the brand image of Netflix.