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INTERNAL ENVIRONMENT: factors relating to products, pricing, costs,

profitability, performance, quality, people, skills, adaptability, brands, services,


reputation, processes, infrastructure.
Factors tend to be in the present
Strengths

Weaknesses

Characteristics that give an advantage


over others

Characteristics that place the team at


a disadvantage relative to others

What do you do well?

What could you improve?

What unique resources can you draw on?

Where do you have fewer resources than


others?

What do others see as your strengths?

What are others likely to see as


weaknesses?

European brand. It became the


leading European film subscription
service due to its ample market
share, counting 2 million members in
the UK, Germany, Sweden, Denmark,
and Norway
Highly competitive organisation.
It has a healthy dislike of its
competitors (especially Netflix) due
to its constantly improvement of the
service through signing exclusive
content deals with international
brands
Price leader. Consumers are very
price-sensitive and are attracted to
the lowest UKs monthly price, from
4, 99, with no late fees players and
Internet. Effectiveness in keeping
costs below competitors costs.
Vast-content libraries , nr #1 in
size : 3,284 movies
Wide availability and
accessibility on over 175 Internetenabled devices including PCs,
PlayStation3,Apple iPad, Xbox
360, plus a growing number of BluRays players increase customer
satisfaction as they can access it
regardless of hours or device
No long term-contracts
customers can cancel the
subscription at any time

Low proportion of content on TV


series : 300 TV titles and 589 TV
Lean flow of new content. The
available movies produced after
2011 are only 94
HD picture and closed captioning
content lack high quality. Ensuring
that consumers receive high-quality
content is essential to maintaining
trust in Lovefilm as a service,
therefore it must be improved.

EXTERNAL ENVIRONMENT: factors relating to markets, sectors, audience,


fashion, seasonality, trends, competition, economics, politics, society, culture,
technology, environmental, media, law, etc. Factors tend to be in the future

Opportunities

Threats

Elements that the project could


exploit to its advantage

Elements in the environment


that could cause trouble for the
business

What opportunities are open to you?


How can you turn your strengths into
opportunities?

Engender customers
loyalty and meet their needs
through the variety of movie
ranges it offers (20,000 films
compared to 7,500 of the
competition).This will be
possible considering the
partnership between BBC
Worldwide, Warner Bros, Sony
Pictures, Disney as well as
Entertainment One and Studio
canal and Lovefilm

Attract new subscribers by


means of its wide collections of
movies. Lovefilm Instant is
stealing a march on competitor
due to its differentiated titles
(3,015 of LOVEFiLMs film titles
are not on Netflix; the company
is also adding losses to Netflixs
brunch with the growth of their
TV seasons) as well as its
impressive choice of films from
a specific period (3163, double
the number of Netflixs movie
collection (1667) for movies
dating from 2010 until pre
1980).
Engage a new market niche
through the entertainment
pack available for children
( Lovefilm became Walt Disney
Company UKs and Irelands first
major partner)

What threats could harm you?


What is your competition doing?

Strong competition. In the


conditions in which Lovefilm
is the price leader and
already has its fees at the
minimum that can be
realistically charged whilst
maintaining revenue, an issue
will be raised if the
competition decides to follow
its price pattern, as it will lose
and advantage.

Possibility of customer
loss due to lack of wider
collections of series of the
competition (589 TV seasons
vs. 925 entire TV seasons of
Netflix). Consumers will
become more aware of the
differences between various
content libraries, and make
their subscribing decisions
accordingly.

Subscribers switch to
competitor eventuality due
to the limited number of new
movies available ( only 94
since 2011, against 152 of
Netflixs