Comcast corporation an American
multimedia firm that is based in Philadelphia as the largest
broadcasting company with cable & home internet providers in
the world that stands as the third-largest home television provider
service firm. Comcast derives its business by five operating
synergies as mentioned below:
- Cable
Communications that contributes the lion's share into
business as by holding 64% revenues consolidated in 2014, and
largely through its also an Xfinity brand that the Comast holds
into its brand portfolio.
- The other is NBC Universal Imprint
makes up the rest of the business as cable
networks of 14% of USA Network, NBC Sports & among
others.
- Then there is broadcast
television business that holds 12% as the ownership of
Comcast's NBC & Telemundo broadcast networks.
- Finally filmed
entertainment of 7% which has large entertainment
properties produced & distributed globally and also
theme-based parks group as 3 %
operates as universal studios located across the world as the other
portfolio/share in the business.
-With this brief
understanding of the business info we can now assess the firm's
SWOT Analysis framework with some instances as explained
below:
1. STRENGTHS OF THE
FIRM:
- One of the key strength this firm
has its entertainment properties which it has
acquired of NBC Universal which finally closed, then it shifted its
control to a substantial array of integrated media properties in
addition to existing holdings of communication for instance. The
firm had really transformed the entertainment business with various
means of production & distribution they engaged themselves as
licensed entertainment offerings with flexibility into the media
ecosystem that created a drastic evolution into a digital
environment.
- Another strength as the firm it
holds is regional control whereby entry into
telecommunications space has high prohibition due to government
policies but Comcast somehow managed this to be one of the largest
virtual monopoly offering firms in many regions and controlled it.
For instance- due to this google had various issues in expanding
the fiber-optic network into new regions because of the strength
the Comcast had into the regions.
- Another major strength with the
monopoly the Comcast had was stronger brand
portfolio- which for instance over the years the firm has
invested in building it with understanding its strengths &
weakness & also assessing the external opportunities with
threats. This strategy of SWOT framework has really helped the firm
in leveraging the brand to its best possible outcomes & also
manage the portfolio of the business efficiently.
2. WEAKNESS OF THE
FIRM:
- Comcast has a weakness in
the cost of doing business which reflects into
constant competition in various dealings sustainably. To
illustrate- due to the firm has taken many initiatives to update or
innovate the business network infrastructures & also deploy the
new technologies in place it suffered in managing high operating
costs.
- Another major weakness the firm has
is customer satisfaction which it faces. For
instance- the internet and television providers are not popular
among consumers generally which also affects thier stock price due
to material impact of unflattering viral news stories. As there are
competing products into satellite-based alternatives the customer
retention has become more difficult for this firm to manage.
- Another weakness of this firm is
they are not good at product demand forecasting
which leads them into a higher rate of missed opportunities
compared to the peers as competitors in the market. For instance-
one of the reasons it is because of high days inventory holdings
compare to peers due to improper forecasting of the demand which
effecting both in-house & in the channel at large.
3 OPPORTUNITIES TO THE
FIRM:
- Comcast with thier added portfolios
has a wide range of opportunities such as Mergers and
acquisitions- For instance, the firm is good into a
strategic part of the business which may lead to strategic
acquisitions in the future that may enhance the overall potential
as well growth of the firm in the global market.
- Quadruple play
bundles is another opportunity the firm can leverage into
the business. For instance- Many consumers are options out the
conventional bundles that supply phone, internet & television
services on a bill that is one. So to support these groups by
adding a three-way bundle to wireless connectivity Comcast has a
great opportunity to integrate these different bundles by providing
wireless service which can grow its consumer base into an evolving
American media era.
- Comcast can leverage another means
of opportunity into adding new consumers from the online
channel by investing - for instance - a vast sum of money
into this online platform & thereby leverage it with better
consumer serving needs and using various big data analytics to
manage the overall portfolio of the business at the global market
at large.
4. THREATS TO THE
FIRM:
- Potential possible threats to the
firm are regulatory developments that may happen
which can slower do the peer to peer connectivity of offering
services to the clients. For instance- the changes in the network
regulations as net neutrality, being into the argument in the
public domain can be a major impact on the internet & such
service providers.
- Audience
fragmentation is another potential threat for the firm
that may happen- for instance, due to the emergence of new
technologies with various digital platforms have really disrupted
the existing media distribution ecosystem. Moving from network
television to movie theaters, virtually connecting the
entertainment industry, by all means, making more digital means of
leaning consumer preferences are the key issues that can hamper the
firm's costs & operations.
- Finally, the other possible threats
the firm can witness are intense competition to rapid
change in industry/technology, & increasing in demand for
skilled workforce in the global market. For instance, it
is threat to the firm if it did not incorporate the changes with
changing demand in industry, market & business it will fall
short into its portfolios and may go off the track as well.
Conclusion:
Thus, based on above SWOT analysis
of Comcast/Xfinity firm with illustrations clearly signifies the
potential ability that is inherent to the firm as micro to it and
also external forces which are macro to it that the firm must
analyze it & also take the strategic decisions by evaluating
all the factors by integrating it to gain the competitiveness and
also be the survival of the fittest at all levels.