Porter’s Five Forces in Comcast Corporation
Sunilkumar Patel
Wilmington University
Background
Comcast Corporation, based in Philadelphia, PA, with its bundling services operates as a media and technology with its two primary business, Comcast Cable and NBCUniversal. Comcast sprung into life in 1963 and went public in 1973 (James, 2014) It has acquired many corporation to take a firm stand where it is at today. Comcast Cable is nation’s largest video, high-speed Internet which has continuously increased its speed 13 times in last 13 years which now offers up to 505 Mbps to residential customers and up to 10 Gbps to businesses as well as phone services under XFINITY brand (Comcast, 2014). NBCUniversal operates in media, entertainment and sports cable network, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts (Yahoo Finance, 2015). Comcast also invests heavily in innovative businesses that represent the next generation of entertainment, communications and digital technology by partnering with entrepreneurs who have the vision, passion and tenacity to succeed (Comcast, 2015). Financial Info
Comcast’s 2014 financial and operational performance was outstanding with revenue increase by 6.4% to $ 68.8 billion up from $64.7 billion in 2013. Operating cash flow also had an increment of 6.9% which accounted more of $ 22.9 billion on hand up from $ 21.4 billion
operating profit reached $396.7 million in FY2012, an increase of 47.6% over FY2011. Also, the net
For the past 45 years Comcast Corporation has provided customers with variety of entertainment. Comcast is the fourth largest cable company in the world. Comcast is now serving more than 21 million customers. Comcast Corporation innovatively provided millions of customers with products and entertainment around the globe. Comcast Corporation has merged with different telecommunication companies as well as other entities such as E! Entertainment television, QVC, and others channels. Comcast Corporation goal is to become the number one cable provider in world (Comcast, 2008).
My compare and contrast essay is about Comcast and DirecTV. Do they offer the same thing to their customers or is one better than the other one? For the longest time I was curious to know which company has the better deal for their customers. Not just the better price, but I would like to look at service and their reliability as well. Comcast has been around for many years.
Comcast Corporation, based in Philadelphia, Pennsylvania, is the largest cable company in the United States. Comcast develops broadband cable networks and are involved in electronic retailing and television programming content.
Google Inc., American search engine company founded in 1998 by Sergey Brin and Larry Page. Google handled 70 percent of worldwide online search requests, placing it at the heart of most Internet users’ experience. Even though Google’s essential core business is search service, it now offers more than 50 percent Internet services and products from Gmail and online document creation to software for mobile phones and tablet computers. Google successfully maintained its core competence meanwhile expanded its business to advertisement and application three major core businesses. Its success in market levitates Google’s growth by acquiring other tech companies as a way of horizontal integration. For example, its 2012 acquisition of Motorola Mobility put it in the position to sell hardware in the form of mobile phones. Google’s broad product portfolio and size make it one of the top influential conglomerate companies in the high-tech market place. Google plays a very vital role in ICT ecosystem and it is one of the forces that enhance the growth of entire ICT ecosystem. For further illustrating the ICT ecosystem, I chose Apple and Comcast as device and Internet infrastructure firm to compare and contrast against Google.
Comcast had an exceptional year in 2016. Stock prices reached an all-time high, while revenue, assets, and operating cash flow toppled analysts’ projections. The global media and technology company has two primary businesses: Comcast Cable and NBCUniversal. These two businesses make up the five reportable business segments which are: cable communications, cable networks, broadcast television, filmed entertainment, and theme parks. Below is the revenue, operating income before depreciation and amortization, and operating income of each business segment. For 2016, cable communications represent the greatest proportion of each graph. Comcast cable is one of the nation’s largest providers of video, high-speed internet and voice services to
The cable provider would purchase 50 percent of Store Communications Inc., which increased the number of subscribers to over 2 million. At this point in time the company was recognized as one of the largest cable providers in the nation. The company would continue to add subscribers as they acquire Maclean Hunter’s U.S. cable operations, adding 550,000 customers and becoming the third largest cable operator in the United States with approximately 3.3 million customers in 1994. A year later they continued to add subscribers at an alarming rate when they announced the acquisition of E.W. Scripps cable systems, adding 800,000 subscribers and bringing Comcast’s customer total to 4.3 million. In another effort to add more subscribers in 2000 with the acquisition of Lenfest Communications, Inc., the company is able to add approximately 1.3 million cable subscribers. While adding subscribers is important to the business plan, Comcast was always looking for ways to appeal to their customers: specifically, the ones who enjoyed watching sports. So along with entrepreneur and owner
According to Stafford and Heilprin, “American Cable Communications (ACC) was one of the largest cable operators in the United States (AirThread Case).” ACC serviced roughly 24.1 million video subscribers, 13.2 million high-speed internet subscribers, and 4.6 million landline telephony subscribers. In 2007, ACC saw revenues of $30.9 billion and had net income equaling $2.6 billion. In order to adapt to the changes in the industry, ACC started aggressively acquiring smaller companies, which resulted in huge customer growth and the development of, “a strong corporate finance team with significant acumen in identifying, valuing, structuring, and executing corporate control transaction (AirThread Case).” That being said, ACC has set its sights on yet another company--AirThread Connections--with the expectation of further revenue growth and customer acquisition and retention.
The above formula isolates free cash flows to the firm from earnings before interest and tax (EBIT). It can be noted that FCFF are after tax (1-T) but prior to interest expense. This initial overstatement of due tax is by design; the tax deductibility of interest payments will be accounted for when incorporating the after-tax cost of debt in the weighted average cost of capital (WACC) to determine the present value of free cash flows.
Time Warner In 1989, the largest Media Corporation was formed. The integration of Time Inc. and Warner communications produced Time Warner, which in 1996 with the acquisition of Turner broadcasting, regained it's status from Disney as the largest media corporation in the world. The company right now, with over 200 subsidiaries world- wide, is becoming fully global with it's profits from the USA falling, and it's profits throughout the world rising.
As a publicly-traded corporation, Adelphia, Inc. was one of the largest providers of cable services in the United States. After the company went public, it was learned that the company had materially
GE is a highly expanded company. The corporate strategy of GE is to reposition itself as the worlds best Infrastructure and Technology Company. (GE) It focuses mainly on being the infrastructure leadership by investing more on the innovation. I think the investment made by GE is a long term process because it always results in great innovation and more profit after certain time. The six-part growth process and the strategic planning will explain about the corporate strategy of GE in
Comcast is a global technology and media company mainly known for its two main businesses, Comcast Cable & NBCUniversal. Comcast Cable is one of the largest service providers for phone, high-speed internet, video, and television services in the nation. While Comcast Cable is a cable giant in the area of business, the company has publically struggled significantly in the area of customer service. Comcast has had a number of public customer service complaints in recent years which quickly grabbed major media attention. These customers began recording phone frustrating calls with customer service representatives and posting them online via social media. Two of these dissatisfied customers were men named Ryan Block and Aaron Spain who posted their evidence of the
There is no exact definition for Strategy because it is defined in different ways as some people think that make a plan to get success in future is a strategy while others think that future is hard to predict. Exceptionally, some Japanese companies have no strategies though these companies have a good cost and continuous improvement. The definition for strategy is to explain the direction and scope of any company for the long term to achieve advantage for the company or to fulfill the needs and expectations. Strategy is different from Operational effectiveness and they work in different manner in the companies. Michael Porter, who is a professor at Harvard Business School and a strategy expert, says that it should determine how organizational resources and skills should create advantage. Accordingly, Strategy can also be defined as an organizational change during actions in the organizations for better and advantageous results or to determine how we win and get success in the future period. It is a needful developed plan with respect to market to compete the world. Organizations should be responsible for competitive changes according to the market. It is the main goal for any Organizations. Business/IT strategy is very important to know the success rate of your business. Apart from Business Strategy, the other two main types of strategy are Corporate Strategy and Team Strategy. These strategies give competitive advantage of cost leadership, differentiation and focus. The
Oilwell Cable Company, originally known as Chord Cable Company out of New Jersey, has been acquired by new management and relocated in Lawrence, Kansas. Original manager behind this move was Gino Strappoli, who came up with a corporate structure that determined company’s success. His vision of the company was for everyone to have some responsibility, all the way down to the workers in production. One of the reasons behind this approach was that this was a continuous manufacturing process that involved a lot of decision-making involving employees on the spot. In a few short years, the company broke even and actually has reached some significant milestones. In 1985, Gino has left for another position, and was replaced by the production