Question

Essay

From your personal research, articles and materials about the activities of Xfinity, the Comcast Corporation, develop a comprehensive and well documented Essay answering the following questions about Xfinity Performance:

- Xfinity’s Competitors

- Functional Analysis

- 4P Analysis

- Financial Analysis

- Industry Ratios

- Competitor Ratios

Answer 1

Xfinity Comcast Corporation

Xfinity's Competitors

The Xfinity Comcast Cable in operating in one reportable business segment Cable Communications, and the operations for NBCUniversal has four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Comcast Corporation is one of the biggest pay-TV providers in the United States with more than 29 million subscribers to one or more of its cable services. Its broadband internet service has approximately 25 million subscribers and its voice service has more than 11.5 million customers.

Xfinity's Comcast Corporation main competitors are AT&T Inc., DISH Network Corporation and Charter Communications, Inc.

AT&T Inc. -The company is the largest wireline voice provider and the second largest wireless provider in the US with more than 140 million subscribers. It offers digital TV along with voice and internet service through its U-verse brand and satellite Pay TV through DIRECTV.

DISH Network Corporation - is the fourth biggest pay-TV provider in the US, serving more than 13 million household subscribers. Its Programming includes premium movies, on-demand video service, regional and specialty sports, local and international channels, and pay-per-view in addition to basic video programming.

Charter Communications, Inc.- It is one of the leading cable TV company in the US after Comcast after it acquired Time Warner Cable and Bright House Networks for approximately $70 billion. The company serves about more than 26 million residential and commercial customers across the US. It offers a full range of services to residential subscribers including cable TV, high-speed internet, VoIP, and entertainment packages.

4P Analysis

Price - It''s pricing strategy like offering lower prices for basic cable services and higher for premium services. This pricing strategy can be termed as cross subsidisation. The media and entertainment sector which is highly competitive and it has maintained the price points to stay competitive and it's prices are at par with market prices and follows price discrimination strategy by pricing differently for different customers. In this way it was able to extract the maximum from its customers.

Product- Comcast’s marketing mix can be classified under four units, Comcast Cable, NBC Universal, Comcast Spectator and Comcast Ventures. Comcast Cable – Comcast Labs produces products like voice remote and next generation 3D. It's brand XFINITY TV – is a service provider on various platforms which provides on demand access to entertainment like movies and TV shows; XFINITY Internet – provide high speed internet via hotspots; Internet Essentials; XFINITY Voice; XFINITY Home; Comcast Business and Comcast Spotlight. It's diversification and product mix has immensely helped it in gaining market share.

Promotion- Comcast provides discounts to users as sales promotions and it uses ad campaigns in its own platforms by partnering with others. It promotes its movies in its television channels. NBC Universal and Comcast uses cross promotional strategies to promote their services in the other platforms. It uses multiple sources for promotions like TV channels, social media platforms and its theme parks. Comcast has its internal creative agency which comes up with the required content for promotion. It partnered with Disney and 20th century Fox for cross promotional strategies.

Place- Comcast has footprint in the entire world with its services. Comcast offers a wide range of services that can be accessed from anywhere in the world. Its services are accessible through internet and on multiple platforms like TV, Computer and mobile phone. Its services like internet and telecommunication are available in many states of USA.

Financial Analysis

Figures in million $

	2017	2016	2015	2014	2013
Revenue	84526	80403	74510	68775	64657
Operating Income	17987	16859	15998	14904	13563
Net Income	22714	8695	8163	8380	6816

The revenue has consistently increased from the FY 2013 to FY 2018. The company's revenue was $ 84526 million in FY 2017 compared to $ 80403 million in the FY 2016. The company has registered a CAGR of 5.51 % during this 5 year period.

The company's operating margin ( operating income / revenue) stood at 21.27 % in the FY 2017 Compared to 20.96% in FY 2016.

Industry Ratios

  Company Industry

Price/Earnings	15.62	34.12
Price/ Book Value	2.21	3.10
Price/ Cash Flow	7.93	7.87
Dividend Yield	2.26%	0.00%
Net Profit Margin	26.79%	6.71%

Competitor Ratios

Company	Market Value	EPS	P/E	Dividend Yield
Walt Disney	$ 156 Million	7.5	13.97	1.59
Charter Communications	$ 72 Million	35.97	8.46	N/A
21st Century Fox	$ 51 Million	2.17	22.55	0.74
Comcast Corporation	$ 152 Million	4.90	6.85	2.29