Porter s value chain analysis of comcast

A question summarizing VRIO resource. The tool was originally developed by Barney, J. According to him, the resources must be valuable, rare, imperfectly imitable and non-substitutable. His original framework was called VRIN.

Porter s value chain analysis of comcast

Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Comcast is also one of the largest internet and television services providers in the U.

Comcast is operating in the media industry, a dynamic and rapidly-evolving industry characterized by intense level of competition and increasing number of substitutes due to the rise of information technology leading to the prevail of new communications and entertainment channels.

The television competitive landscape is classified as a monopoly, with Comcast being the market leader. Similarly, the aggregate number of households will also increase from million to million.

Brief overview of Comcast Corporation

Revenue prospect for media companies is brighter than that of communications companies, with the key drivers include new emerging markets, new channels of digital distribution, and the bundled offer of media content, internet provider, and other services.

Digital content and their distribution channels remain the key issue for media providers to innovate and compete against each other, especially on the mobile platforms. Media companies in this era will be required to constantly upgrade their technology expertise to remain competitive.

For instance, there is the concern of copyrights and protected contents that have led to various numbers of lawsuits.

Porter s value chain analysis of comcast

Publishers and providers alike are required to be more cautious and follow stricter protocols to protect themselves against potential lawsuits and disputes related to the contents provided. Another concern is the increase in piracy and counterfeit contents, especially in less developed jurisdictions.

Media providers are forced to take more precautions and spend more efforts on lobbying for political and regulations to protect their contents and consequently profits against piracy and intellectual violation.

To navigate through complicated regulations and restrictions related to the cable industry, Comcast employs a large team of hundreds lobbyists, with annual budget for lobbying activities reaching dozens of million dollars Continetti, Due to the rapid urbanization rate and economic downturn, people are generally working for longer hours, leading busier lifestyles, leaving less time for television channels and other forms of media and entertainment.

These conditions have negative impacts on the traditional method of news and content broadcasting via television. To handle the changing social environment and provide better service to customers, Comcast is focusing on the communications aspect, employing thousands of client service staff and technicians to provide timely communication and assistance to customers Reardon, This trend requires media content providers to innovate their services, creating alternative medium on which customers can conveniently stream their contents.

Comcast on average provides a more comprehensive package and bundle, at relatively higher prices. Notes Desk Rivals in the industry As analyzed above, the media industry can be characterized as a oligopoly, with the TV broadcasting sector being close to a monopoly.

In this respect, threat of current rivals is small as leading companies such as Comcast enjoy a competitive advantage from their size.

Understanding the tool

However, there is the potential of smaller competitors merging into a larger opponent that can directly compete against Comcast on the same level. Bargaining power of suppliers Comcast have to use a number of specialized equipment in their business, such as setup boxes, satellites, routers…in their business.

As the equipment are highly specialized and can only be provided by a limited number of suppliers, Comcast have a certain degree of dependence on suppliers.

Bargaining power of customers Similar to suppliers, customers are seeing declining bargaining power as companies like Comcast increases in size. With their network, power, and controls, Comcast can raise service prices for more revenue, wipe out smaller competitors, and set data limits which would require customers to pay more.

Threat of new entrants This threat is minimized due to high barriers of entry to the industry i. Threat of substitute products This is the greatest challenge to Comcast and others in the media industry.Comcast Corporation Porter Five (5) Forces Analysis for Services Industry Threats of New Entrants New entrants in Entertainment - Diversified brings innovation, new ways of doing things and put pressure on Comcast Corporation through lower pricing strategy, reducing costs, and providing new value propositions to the customers.

Five Forces Model of Competition Porter’s Five Forces Model of competition comprises five components, which are supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entry (Porter’s, ).

Porter s value chain analysis of comcast

Porter S Value Chain Analysis Of Comcast. firms can gain a competitive advantage, it is useful to model the firm as a chain of value creating activities. For this purpose, Porter identified a range of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain.

The Porter’s Five Forces tool is a very powerful tool. It is simple but excellent for judging exactly where power lies. As it helps to understand not only the strength of current competitive position but also the strength of an expected position, it is very useful.

Managing partners in one's value chain: Netflix vs. Comcast - Business Strategy Blog

Comcast has a total of million total customers. Comcast is a leading corporation in the telemarketing industry. Ranked 46th on Fortune , and 3rd in the telecommunications industry. Comcast is also the largest technology-related industry: television, landline, internet and phone.

Comcast Corporation Porter Five (5) Forces & Industry Analysis [Strategy]

Comcast is the nation's largest video, high-speed Internet and phone provider to residential customers under the Xfinity brand. Comcast has a total of million total customers. Comcast is a leading corporation in the telemarketing industry.

Comcast's Strategy and Corporate Management Style | Susan Price - leslutinsduphoenix.com