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Two Page Case Analysis Paper The main issue of Ken Belong article is identifying possible strategy that Comcast Cable will have to adopt, in order to remain competitive. Industry Analysis: Comcast is the largest U. S. cable television provider with 21 million subscribers nationwide.
Its structure is largely defined by programming investments: Entertainment Television 60. 5 %, Outdoor Life Network 100 %, The Golf Channel 99. 9 %, Style Network 50. 1 %, G 4 93. 6 %. There are also a few more, less popular channels with Comcast share from 30 to 100 percent. It appears that Comcast has entered a stagnation period because of its failure to acquire Walt Disney Company and also because of an increased competition with satellite television providers. Comcast unique problem is how to maintain the value of its shares thorough continuing acquisition of smaller companies. The best opportunity to do it now seems to be winning bid for Adelphia Comm. Company Profile: Comcast product lines consist of 10 cable channels and broadband Internet access channel.
It has 6 million broadband customers. Companys position is well ahead of its competitors with 21 million subscribers comparing to 10 millions of its closest rival Time Warner Cable. Its financial position is best described as stable. Companys revenue reached 5. 1 billion in second quarter of 2004. Comcast operational condition is active. The advent of satellite television era forced Comcast to look for new ways to compete with it on technological level.
Its now adding an exclusive high-resolution programming to its package. The digital quality of such cable packages can be hardly matched by Comcast satellite rivals. This, of course, will help to retain customers and encourage new ones. Comcast personnel are highly motivated to maintain their high performance level. The entry position salary is higher than with other cable television providers. Employees also enjoy many healthcare benefits.
Corporations production capacity is defined by the fact that it dominates 22 out of 25 National cable markets. The Comcast managerial capabilities appear to be adequate. Their effectiveness is based on well-established marketing traditions, since companys founding in 1960. Also, managers dont enjoy much of a liberty in making decisions, which makes company more financially stable.
This Comcast managerial strength is also its main weakness, as it doesnt encourage managers flexibility, which is very important on todays dynamic financial market. Brief SWOT: Comcast main objective is to remain competitive. The company is too large and because of that it has to be constantly expanding, in order to stay in major league. Company also tries to attract new customers by making its services more technologically appealing, but I think it wont turn out to be beneficial in the long run, as it is only the matter of time before cable technology will be considered obsolete. In my view, Comcast approach towards increasing its effectiveness quite adequate.
Its main objective is to acquire a monopoly status on the cable market, as it will largely undermine satellite providers competitiveness. Still, companys investments in increasing the quality of its services appear to be just a waste of money. Satellite TV will still have the upper hand when it comes to implementation of new technology. Recommendation: I would recommend Comcast Cable to continue with it its present acquisition marketing strategy, although it needs to become much more aggressive. The failure with bidding for Walt Disney Company only proves the lack of aggressiveness on the part of Comcast, as it had more than sufficient funds to do it.
Investing in technology wont benefit Comcast, it can only temporary increase its appeal to customers, but this is not crucial because company already has twice as many subscribers as its closest rival. Important is not to squander money on secondary projects but to concentrate on the main goal becoming U. S cable television monopolist.
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Research essay sample on Walt Disney Company Remain Competitive
