write a brief explanation of the findings and implications of the data identified in the IFE.
- As stated in the text, The Internal Factor Evaluation (IFE) Matrix A strategy-formulation tool that summarizes and evaluates a firm’s major strengths and weaknesses in the functional areas of a business, and provides a basis for identifying and evaluating relationships among those areas (David, et al, 2020).
- The IFE Matrix total weighted score is suggestive of whether a continuation of strategy is needed (scores above 2.5) or a change in strategy is warranted (scores below 2.5) (David, et al, 2020).
Regardless of how many factors are included in an IFE Matrix, the total weighted score can range from a low of 1.0 to a high of 4.0, with the average score being 2.5. Total weighted scores well below 2.5 characterize organizations that are weak internally, implying that new strategies are likely needed and perhaps a new direction, new vision, or mission. Total weighted scores well above 2.5 indicate a strong internal position, whereby a continuation of current strategies may be prudent (David, et al, 2020). Total IFE Score is 1.83 and needs to be addressed.
Strengths that need addressing:
- The business model is flexible and evolves over time
- Strong business model provides competitive advantage
Weaknesses that need addressing:
- Keeps raising it’s prices
- Most of Netflix business resides in US with just about 50% of its revenue in 2019 coming from North America
References:
David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). New York, NY: Pearson Education. ISBN-13: 9780135203699
Netflix. (2021). Netflix Releases Third-Quarter 2021 Financial Results. Netflix Investors. Retrieved from: https://ir.netflix.net/investor-news-and-events/financial-releases/press-release-details/2021/Netflix-Releases-Third-Quarter-2021-Financial-Results/default.aspx