Time Warner Cable inc

David Green, Frankie Miamen, Tiffany Gray, Nick Foster, Tobi Coker

PEST AnalysisFactor Threats or opportunity Impact Political

-Legal proceedings/ regulations

-Due to our concentrated market political restriction are implemented.

+ Political Advertising

1.moderate

2. high

3. low

Economic + Economic Growth in Europe and Asia- Pacific.

-Economic Recession.

1.low

2. high

Social

(include demographic)

+ 80% of US households subscribe to paid TV services.

+ Increase growth in Latin America and Hispanic population.

+Consumerism

1.high

2.moderate

3.high

Technological + Technological advancements, such as VOD, new video format, and internet streaming and downloading are beneficial.

- Bundles have increased competition.

+ Advancement in the use of internet and mobile devices

+Fiber Optics

1.high

2.high

3.Moderate

4.Moderate

Factor Threat or Opportunity Market Size & Growth rate -European and Asia-Pacific markets are growing

rapidly. Their market reaches 95,875.2 million in 2009, the CAGR is forecasted to be 5.7% by 2014. +TV Advertising and broadcasting is the largest segment of broadcasting and cable accounting for 49% of total market value

Number of Rivals -AT&T and Verizon have upgraded their networks to carry two-way video and substantial bandwidth.-Intense competition

Differentiation -Standardized services -Easy to duplicate new service innovations+Customer Loyalty programs

Supply/Demand Conditions -Heavy reliance of suppliers

Pace of Technological Change -Increase cost of demand for triple play bundles.-Due to the advancement of technology more consumers are able to stream more content from the TV onto their mobile phone. +/-Rapid Technological changes +Fiber Optic Service ( FiOS)

ETOP

ETOP cont.Changes in Cost and Efficiency -Low profit margins

-Programming Cost

Vertical Integration +Reduce programming cost

Industry Trends + Growth of large media companies & Television.-Prices increase for programming-Discrete Consumerism. -+oint ventures/mergers and acquisitions

Threats of New Entrants +Very low due to our concentrated market and fragmented customers. -Restrictive government policies and well established viewing power.

Internet Expansion +Movie on demand and social media.-Customers can get content such as movies from the internet at no charge. -Piracy and Illegal activities

Revenue from U.S. and The Rest of the World

United States47.7%

Europe29.7%

Asia Pacific22.6%

Global Broadcasting and Cable TV

17

28

15

9

Market Share

DirecTVComcastTime Warner CableDish Network

Time Warner Cable Comcast Corp. DirecTV Dish Network

35.10%

50.00% 51.00%

62.00%

Programming Costs

Name of Company Package What Is It? Cost

Time Warner Cable Triple Play TV, Internet, phone $124.85 / month

ComCast Triple Play TV, Internet, phone $99 / month

DirecTv DirecTv Family Package TV, Internet, phone(optional: DVR and HD)

$75 / month+ $7 (optional DVR)+ $10 (optional HD)

Dish Network Dish Family Over 55 channels $20 / month

Industry OutlookMarket Segment: Expected growth:

(2009-2014)

US 3%

Europe 2.9%

Asia Pacific 5.7%

Market Value: (2014) in millions

$147,212

$110,837

$96,472

Porter’s 5ForcesSummary

Force Strength Reason

Rivalry Strong • New Service Introductions • Several Mergers & Acquisitions• Slow Market Growth in the U.S.• Price Competition & Increasingly Standardized Products• Marketing Tactics: Sales Promotions & Advertising

New Entrants Low • Industry is Characterized by Economies of Scale• Strong Customer Loyalty and Brand Preference• High Capital Requirements & Restrictive Government

Policies• Strong Top Competitors

Substitutes Moderate • Streamlined Content• Newspapers & Magazines• Libraries• Movie Theatres• Computers, Video Games, Radio• Wireless Devices & tablets.

Suppliers Moderate to Strong • Extremely High Switching Costs Between Suppliers• Heavy Reliance on a Limited Number of Programming

Vendors & Networks• Integrating Backwards is not Economically Viable for

Setup Boxes & Video Programming

Buyers Moderate • Low Switching Costs Between Firms• Buyers are Becoming more Informed• Lack of Effective Customer Loyalty and Retention

Overall Competitive Force & AttractivenessOverall Competitive Force-Moderate to

StrongUnattractive New EntrantsAttractive Current Industry Members

Key Success FactorsCustomer Relations & ResearchEconomies of ScaleLocation/ReachClever Marketing New Service Innovations/CapabilitiesProgramming

Customer Relations & ResearchImportance weight .10Customer RetentionLoyalty ProgramsCustomer ServiceConsumer ResearchPredicting Trends

Economies of ScaleImportance weight .17Cost ReductionOperating Income/profits

Location and ReachImportance weight .23SubscribersCustomer Service CentersStates or Internationally

Clever MarketingImportance weight .12New revenue streamAdvanced/Dynamic AdvertisingDifferentiation

New Service Innovations and CapabilitiesImportance weight .23Diversification Differentiation

ProgrammingImportance weight .15Programming CostContentNetworksBroadcast Stations

Key Success Factor/Strength Measure

Time Warner Cable Inc. Comcast Corp. DirecTV Dish Network

Importance Weight

Strength Rating

Score Strength Rating

Score Strength Rating

Score Strength Rating

Score

Consumer Relations 0.10 6.0 0.6 7.0 0.7 10.0 1.0 8.0 0.8

Economies of Scale 0.17 8.0 1.4 10.0 1.7 9.0 1.5 3.0 0.5

Location/Reach 0.23 6.0 1.4 9.0 2.1 8.0 1.8 5.0 1.2

Clever Marketing 0.12 8.0 1.0 7.0 0.8 7.0 0.8 7.0 0.8

New Service Innovation Capabilities

0.23 6.0 1.4 9.0 2.1 7.0 1.6 7.0 1.6

Programming 0.15 9.0 1.4 10.0 1.5 8.0 1.2 5.0 0.8

Sum of Importance Weights

1.00

Weighted Overall Strength Rating

43.00 7.03 52.00 8.88 49.00 8.02 35.00 5.66

CSA

Strengths:Brand name

Strong market positionProgramming Variety

Consistent revenue growthLowest programming cost

Social ResponsibilityDiversity

Weakness:Failure to innovate

ExpensiveSignificant debt

Legal investigationsHeavy dependence of suppliers

Requires Personal InformationCustomer Service

Opportunities:Online video contentInternational market

Fiber OpticsGrowth of HDTV/3D

Cloud ComputingRapid technological changes

Mergers/acquisitions and joint ventures

Threats:Stand alone servicesHeavy competition

Government regulationsLicensing Rights

Economic recessionSlow industry growth rate

Piracy/alternative sources of videoCord Cutting

SWOT