Comcast Corporation is an international media and technological company located in United States. The mentioned Corporation has two key primary businesses; Comcast Cable and NBCUniversal. Imperative to note is that Comcast Cable provides myriad services and products to the consumers. The said business is the nation's largest video subscriber. Also, the Comcast cable is a provider of high-speed internet and phones to the housing customers as well as the businesses. On the other hand, NBCUniversal invariably engages in operations such as well news, sports cable network and entertainment. A notable fact is that the mentioned business is one of the largest and leading in the field of media and entertainment industry. NBCUniversal has in a great way boosted the entertainment industry through development, production and quality marketing of entertainment, information and news to the international audience. Plausibly, Comcast Corporation engages in the sale of shares as one way of boosting its end year profit. Due to the fact that the said corporation invariably evinced quality services to the users, subsequently, it has myriad number of investors. Interesting to mention is the fact that there has been rise in stock prices of Comcast Corporation. For instance, the stock price of Comcast Corporation in 2009 was going at $16.86 whilst in 2013 the stock price soared to $ 51.97. Prevalently, both local and international business constantly engages in stock exchange.
Comcast Corporation just like any other corporation does not exist in isolation. Apparently, business ventures exist in a particular location called environment. Interest to note is the fact that the general environment impact companies in a great way. Additionally, it is the general environment that solely determines the end year profit of any companies (Daft & Marcic, 2012). The fact is the mentioned environment dictates the operations of myriad businesses. Wise to note is that the management of a progressive corporation must, therefore, critically examine and evaluate the general environment surrounding the corporation. Notably, the general environment impacts distinct companies in different ways. For instance, a company trading in communication receives different impact from the general environment as a compared to company engaging in energy industry.
Technology as a product of the general environment influences the operation of the Comcast Corporation. A point to note is the fact that the mentioned Corporation deals in communication and provision of high-speed internet to the end users. The mentioned two products entirely really on the technology; new technology or change in technology greatly impact the corporation. For the mentioned company to flourish in already competitive environment it must innovative novel ideas in technology. Importantly, technology is not static rather dynamic, in view of the said nature of technology the Comcast must, therefore, embrace and ingrain new technology in development of its product (Daft & Marcic, 2012). Interestingly, the consumers are bond to product of high quality, any product below the expected quality will lead to low sales. It is for this reason that the Comcast Company uses technology to produce quality product.
Prevalently, technology influences the product to be produce by the company. Evidently, in the past, the consumers in the communication industry were loyal to the dial up access. Immediately, Comcast Company invented the broad band technology, astronomical users of internet subscribed are now opting for the new technology. The said technology has a high speed in surfing. Invention of quality technology leads to quality products that in the end lead to high sales. Through the exponential sales, Comcast make significant interest. The mentioned company is meticulous to ensure the competitors do not overtake the Corporation in terms of technology.
Economic condition is another primary factor of the general factor that greatly affect the profit and the operations of Comcast Corporation. The fact is a slow economy affect the Comcast Company in many ways. During the slow economy, the populace is economically struggling and is unable to subscribe to the monthly broadband connection that goes at $ 40. The fact is at slow economy broadband connection is a luxury and the consumers opt for saving rather than investing in much expensive connections. Most of the users of the internet will oblige to subscribe to monthly dial up connection that only goes at $ 10. In view of the above example, Comcast Corporation is not in a position to attract significant number of internet users, thereby, reducing the profitability of the discussed company. Similarly, during the slow economy, the stock price significantly falls which further reduces the profit of the organization. Conversely, when the economy is at the peak, most of the users are willing to subscribe to broadband connections. Similarly, the stock price of Comcast Company will be selling at a high price.
Typically there are several industry environmental factors that affect the Company returns, profits as well as the operation of the company. Most importantly, is the fact the mentioned factors in many circumstances led to the closure of many corporations. For a company to compete favorably in a competitive environment then it must critically evaluate the strength and weakness of the competitors. Additionally, the company must have a lucrative financial base and resources as means of survival in the competitive environment. Furthermore, the company must produce services and product of high quality. Industry environmental factors include bargaining power of suppliers, the bargaining power of buyers, threats of new entrance, rivalry among the existing competitors and availability of substitute product.
Rivalry among the existing competitors is a predominant factor affecting the profitability of Comcast Corporation. The mentioned industry is the largest pay-tv provider; however, there are other corporation providing similar services in the same market (Boone, 2013). The above existence of similar corporation, leads to stiff competition among the corporations. There are other corporations which provide similar product to Comcast industry, just to mention but a few, Cablevision System Corporation, Crown Media Holding Company, Charter Communication Inc. The mentioned Corporations communicate to audience in terms of which channel to subscribe to and also compete for advertisement. The mentioned competition significantly slashes the profitability of Comcast Corporation, bearing in mind that the subscription in Comcast Channel is relatively expensive as compared to similar corporation.
Apparently, for Comcast to compete favorably in the already flooded market, the Corporation must, therefore, come with strategies and means of overcoming other competitors. The merger between Comcast Corporation and Time Warner Cable was one of the best strategies for Comcast Corporation to increase its market share in the global market. Evidently, the two corporations combined now control two-thirds of the broadband cable market in US. Similarly, the two corporations now serve up to 33% of the paid TV customers in the country. Importantly, the merger has led to increase in market for Comcast Corporation leading to increase sales. Similarly, the merge has led to significant investors buying the share of Comcast in the assumption that the profitability of Comcast Corporation may increase.
Availability of substitutes is another primary factor affecting the profitability of the Comcast Corporation. Naturally, the customers are bond to product which are relatively cheap and of high quality. A point to note is that the broadband connections are going at $ 40 per month while dial up connection which only goes at $ 10 per month. In view of the cited figures, a customer who opts for dial up connection will save up to $ 30. The mentioned substitute has significantly reduced the subscribers to the Comcast Corporation broadband connection, thereby, reducing its profit and performance of Comcast Corporation in stock-exchange (Boone, 2013). Similar Digital Subscriber line abbreviated as DSL invariably provide high speed internet at a relative low price as compared to Comcast Corporation. Also, DSL recently innovated data bundle package; the innovation has taken the data subscribers with excitement. Similarly, to increase the competition Google joined the market by inventing a high-speed internet.
Prevalently, to address the myriad number of customers opting for dial up connection, Comcast Corporation invented broadband connection that provides a faster internet connection. As a result of high-speed internet many customers opt for broadband connection. Comcast Corporation realized that most of the customers of DSL complained that installation takes time. Comcast Corporation took vantage of the complaints and ensures that its installation is prompt. Also, distance has been an issue for the phone users who prefer to enjoy DSL internet services, Comcast Corporation came up with sophisticated equipment that enable the user from far distance to enjoy its services. A point to note is that Comcast Corporation in addressing the mentioned challenges, there has been huge subscription to Comcast Corporation products and services.
The Corporation must corner on workable strategies to completely triumph its competitors. The pay-tv services are at a high price as compared to other providers of the similar product. In future the Comcast Corporation should consider reducing the price for subscription to the television channels. Decrease in price will attract myriad customers to subscribe to the Comcast Corporation TV channels. On a similar note, the broadband connection goes at a $ 40; the discussed Corporation should reduce the price of its monthly broadband connection.
Comcast Corporation faces external threat from the surrounding environment. Just to mention but a few, the regulatory changes by federal government, local government and the state is a clear threat to Comcast Corporation. The regulation controls the pricing, healthy competition, cases of mergers and acquisition. The pricing and conduct of Comcast Corporation must be tandem with the set federal regulation. Secondly, the presence of the satellite communication providers in the market is a threat to cable providers. Thirdly, the customer survey report explicitly elaborated that the customers were not satisfied with the products and services provided by the Comcast Corporation (Gibson, 2011). Fourthly, audience disintegration of the traditional media, pose a challenge to the discussed Corporation. It has been intricate and expensive for the Corporation to access the said audience. To handle the mentioned threats, the discussed Corporation should produce products and services of high quality at relatively low price. Secondly, the Corporation should conduct more survey and research to effectively address the customers’ complaints.
Similarly, the external environment is full opportunities to the Comcast Corporation. The Corporation has an opportunity to enlarge its horizon through acquisition and joint venture. Secondly, there is an opportunity in the growing digital cable, an opportunity that the Corporation should explore. Thirdly, there has been changing trend towards the emergency of 3D Television; such TV is completely immune to any form of piracy. Fourthly, future growth in the network market will depend on the network upgrade to triple-play service. To utilize the mentioned opportunities, the Corporation must ensure its operation is line with the set regulations of the federal government. Secondly, the Corporation should invest in the digital cable and also consider investment in the 3D television. Moreover, the Corporation should upgrade to triple-play network to positively impact the network market.
Comcast Corporation has significant strength in many areas, just to mention, huge capital expenditure is requisite in cable services as such limits entry of other similar Corporations. Secondly, the discussed Corporation has high brand recognition as compared to other similar firms. Thirdly, it is simply and easy to add additional services to the already existing network. Fourthly, the Corporation enjoys the economies of large scale. Fifthly, the Corporation has a large and stable financial base as compared to other business (Gibson, 2011). The Comcast Corporation should use its huge financial base to investment in additional network services and also to provide quality services to the customers. Also, the corporation should use part of its financial resources to conduct more research and survey as a way of detecting customers’ needs and satisfaction. Through quality services coupled with investment in other network services will lead to attraction and retention of customers. Consequently, the profitability and stock prices of the discussed Corporation will increases in significant way.
Conversely, the Comcast Corporation faces several weaknesses that affect its operations and the end profit. Recently, there has been significant increase in the programming cost, a factor that affects the Comcast Corporation. Secondly, the discussed Corporation still needs a huge capital expenditure to provide quality services to the customers (Gibson, 2011). To iron out the mentioned challenges the Comcast Corporation should merge with other similar Corporation to share the exponential capital expenditure and the rising programing cost.
The Comcast Corporation has lucrative financial base, the company resources include both fixed and current assets. Also, the receivables and investments of Comcast Corporation further boost the financial position of the Corporation. Not to mention, the Corporation has huge cash and cash equivalents as such boost the financial resources of the Corporation. There has been tremendous rise in the Corporation resources from the year 2012 to 2013. The mentioned astronomical financial resources have been competitive advantage of the Corporation in the market. Huge financial resource usually boost the capability of the Corporation, for instance, a Corporation with meager financial resource is unable to invest in other additional network services, thereby, limiting itself from competition. The core competencies of the Comcast Corporation permit the Corporation to have set of skills or rather production techniques leading to provision of product and services with additional value to the customers (Daft & Marcic, 2012). Comcast Corporation utilized its huge resources to enhance its core competencies. For instance, the Corporation produces products and services of sophisticated quality as compared to the competitors. Secondly, the Corporation provides one stop shop to myriad subscribers as compared to its competitors. Thirdly, due to the size and ability to secure fashionable distributions, the Corporation is able to offer a wide range of services to the customers.
The value chain of any given Corporation is to increase the quality or add addition value that makes the product or services to be more appealing to the customers. The Comcast Corporation endeavors to increase the quality of its product as such meet customer expectation. The discussed Corporation utilized its resources and capability to invest in digital cable network leading to the production of high-speed internet to its customers. Secondly, the strategy of Comcast Corporation to acquire the Time Warner Cable was to enable the Corporation to provide quality and more is compelling TV channels to its global audience.
References
Boone, L., & Kurtz, D. (2013). Contemporary Marketing. USA: South-Western, Cengage Learning.
Daft, R. L., & Marcic, D. (2012). Understanding Management. USA: South-Western, Cengage Learning.
Gibson, P. (2011). The World of Customer Service. USA: South-Western, Cengage Learning.
