...helps a company excel during good times and maneuver through tough times. However, having a plan does not always determine the direction the company will go, the strategic plan is more like a map or GPS for the company. There are tons of other variables that drive a company. For instance, having great internal and external environments play a role on how the company will progress. The internal environment entails employees, management, the work culture/mission, and ethics. These components help make or break a company’s morale. If your company’s environment is unhealthy, then it is very possible the strategic plans that would be implemented improperly. The external environment is very important in a company as well, these are variables that occur outside the companies facilities that alter the company’s plans. Companies take their environments’ very seriously, there is a process call environmental scanning which, is an analysis of a company’s internal and external environments. Two companies that were recently researched using an environmental scan were Time Warner Cable and Nike. After an environmental scan it is possible to analyze the competitive advantage of Time Warner Cable and Nike. While, analyzing the competitive advantage, it is possible to see the value and effectiveness of Time Warner Cable and Nike’s business strategies. These two companies are in different industries; Nike being a global shoes and apparel company and Time Warner Cable being the second cable, internet...
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...6 March 2009 Memo 5: Strategic Analysis of Time Warner Background: Time Warner, Inc. was formed in 1990 through the merging of Time magazine publisher and Warner Communications. The merger of these two companies brought together different scopes of the media industry, and they hoped to capitalize on the brand equity and marketing aspects contained by each. The purpose for this memo is to look at the different business segments within Time Warner, the strengths and weaknesses of its operations, and a definitive long-term operating strategy that will position them for continued success. Time Warner is one of the largest media companies in the world, but faces tight competition from industry giants like Disney and Viacom. While the company is required to adhere to the restrictions by the Federal Communications Commission, the FCC has been loosening the reigns slightly with regards to the diversification and size of the main media players. The regulation goal of the FCC is to prevent one company from solely influencing the information passing through the airways and entertainment outlets into the mind of consumers. Porter’s Five Forces: In order to carefully formulate the strategies to be employed by Time Warner, a comprehensive examination of each of its business areas needs to be evaluated. Time Warner has five main business lines: AOL, film entertainment, publishing, programming networks and cable systems. We will begin the analysis of T.W. and its merge with AOL, including...
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...Case Analysis 11 AOL Time Warner, Inc.: A Bad Idea from the Start? * Time Warner is the result of a merger of two companies (Time Inc. & Warner Brothers). Both companies * * grew to become industry leaders in media and entertainment. Time Inc. launched various magazines and * * acquired a publishing house. Warner studios released the first talking movie and created Warner Bros. * * Warner studio became a cable industry. Time Warner further expanded its market potential in its industry * * and merged with AOL, an industry leader in online information and other broadband services. AOL purchase * * of brands such as CompuServe and MapQuest along with other brands, was its acquisition strategy. After the * * merger in Jan. 2001 the company became known as AOL Time Warner. AOL offered stock value of $110 for * each Time Warner share that was selling at $64.75 in the market. AOL Time Warner marketing concept was to * combine new and old media to strengthen total position in the market. AOL Time Warner revenues increased * by 78.7% in 2002. Operating income and net income decrease. Net loss was $98.69 billion compared to a loss * of $4.93 in 2001. And a profit of $1.12 in 2000. By 2003 the potential of the merger failed to be seen due to * economic, financial times, internal management and cultural clashes. * * I. Internal Scanning * A. Strengths 1. AOLTW held the...
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...Time Warner Cable 200 8 A N N U A L R E PO R T Time Warner Cable is the second-largest cable operator in the U.S. and a major provider of communications and entertainment services to homes and businesses. Our technologically advanced, well-clustered operations serve about 14.6 million customers in 28 states, with our largest operations located primarily in five geographic areas: New York State (including New York City), Texas, Ohio, the Carolinas and Southern California (including Los Angeles). Time Warner Cable is built on a foundation of technological innovation and commitment to the communities we call home. VIDEO • Time Warner Cable offers packages of ff cable channels to fit a wide variety of budgets. With Digital Cable, customers have access to more than 200 channels, On Demand, parental controls and optional DVR service. • Time Warner Cable’s Digital Cable is the “Home of Free HD.” Our highdefinition service delivers the best fi HD channels and HD On Demand. • On Demand gives customers thousands of viewing choices instantly, with new movies, shows and sporting events added every day—many in HD. • Start Over® is an Enhanced TV feature that lets viewers restart a program already in progress, at the push of a button, even if they haven’t programmed their DVR. HIGH-SPEED DATA • Road Runner High-Speed Online delivers a blazing-fast Internet connection with speeds up to three times faster than standard DSL packages. • Security Suite comes with every subscription and delivers...
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...popular, mainstream media companies were unsure of how to profit off the new sensation. Television sets back then used antennas that received wireless airwaves to produce a picture. Consumers could theoretically watch any channel within a broadcast area for free. While this was taking place Glenn Beck, Former CEO of time INC, was working behind the scenes to implement a service that would allow for viewers to plug into a regulated receiver to have reliable access to a broad range of channels and networks. In 1978, TWC acquired 100 percent of the American Television Communications network and Glenn Beck’s idea of regulated television was put into motion. Time INC merged with Warner Cable Company in 1989, and then three years later ATC and Warner converged to formally become the Time Warner Cable, a subsidiary of Time INC. In 1996, Roadrunner high-speed Internet was introduced; next they unveiled their version of digital phone service in 2003. By 2005, the company had brand named the Triple Play, a combination of all three services. Beck’s idea finally had a face and was a fully operational communications company. Time Warner Cable has three corporate offices along the east coast in Connecticut, North Carolina, Virginia and its headquarters are located in New York City. Time Warner Cable is now completely independent of the Time Warner Company, and operates nationally in 29 different states. (4) More recently, the nation’s second largest communications company has undergone a shift...
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...The PESTEL framework provides a broad analysis of six major organizational factors; Political, economic, social, technological, environmental, legal. The origin of the PESTEL diagnostic model is fairly ambiguous, as it has only recently become a staple in corporate human resource environments within the last ten to fifteen years. The model itself is a broad snapshot of an organization’s big picture. In other words, the PESTEL diagnostic model can be used to help identify strengths, weaknesses, opportunities, and threats. According to Evans and Richardson, “organizations will need to examine competitors (current and potential), in order to determine their capabilities and strategies before evaluating their likely actions or responses” (Evans and Richardson 2007). This suggests further analysis is required after the production of a PESTEL analysis. The PESTEL framework was chosen for a few reasons. First, the analysis creates a general map of the external environments of each organization. Second, a fairly significant portion of mergers and acquisitions occur because of external forces. The PESTEL analysis determines the external forces at play for each organization. Third, the PASTEL analysis external forces only qualify if they are defined as a change in the environment. In regards to the America Online and Time Warner merger, a PESTEL diagnostic analysis can be applied to both organizations. First is an overview of the political external environment. Due to the...
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...compete with that one (Howson, Cindy, Successful Business Intelligence 2013). With the run of time that small firm can turn into a great company or corporation and become a leading monopolistic on the market. This is why I have decided to research Time Warner Cable. The history of the company is unlike any other with their cutting edge digital technology, range of home entertainment and information choices for the whole family to enjoy, and superior customer service that demonstrates customer satisfaction is the company's number one priority. In the late 1940s, entrepreneurs using simple antennas an Army surplus coaxial cable created the country's first cable television system and revolutionized the way Americans watched television (Warner Sperling, Cass, The Brothers Warner 2008). More than 70 years later, Time Warner Cable (TWC), the second largest cable provider, owns and manages advanced, well clustered cable systems throughout the United States and is ready to embark on it's next life phase of merging with Charter Communications. With the spread of the medium of television in the years following World War II, entrepreneurs in rural and valley towns figured out a way to bring distant broadcast signals to their communities using antennas and coaxial cable. During this time, visionaries emerged who would shape both the cable industry as a whole and Time Warner Cable. By the late 1960s, cable is positioned for an explosive growth. A few of the early pioneers are Bill Daniels and...
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...1 Time Warner Ctr. | New York, New York | 10019-016 | USA 1 Time Warner Ctr. | New York, New York | 10019-016 | USA TIME WARNER INC. The beginnings of Time Warner Inc. date back to 1922, when Henry Luce and Briton Haden founded Time Inc. Also during that time, brothers Harry, Abe, Jack and Sam Werner established Warner Bros. Entertainment. Today, Time and Warner Bros., along with Home Box Office, Inc. and Turner Broadcasting System, Inc. combine to make Time Warner one of today’s a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing. Time Warner previously owned AOL, Time Warner Cable and Warner Music Group, but these have all been spun off into independent companies. In March 2013, it was announced that Time Inc. would be spun off as well, completing Time Warner's evolution into a pure-play global entertainment company. The company's cable news channel, CNN, later clarified that the Time Inc. spin-off would happen at the end of 2013, though this has since been delayed to early 2014. It's now being reported that the planned spin-off of Time Inc from Time Warner will take place half-way through 2014 with the company's planned IPO being to happen in late 2014. Time Warner’s corporate strategy revolves around strategic mergers, acquisitions and corporate actions that result in creating cash considerations for the company. Thus, Time Warner is in a strong financial position today as they recorded...
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...FUTURE STRATEGIES Disney’s theme park strategy underscores the importance of vertical integration for the company as a means to exert total control not only over the individual segments of the media value chain, but also over the individual value chains of its business units. For example, by owning all elements of the theme park value chain, starting with travel agencies, over food and merchandising, to the accommodation of the parks’ visitors, Disney made sure that all possible revenue streams were channeled into the group without intermediary-related losses. Despite its precarious financial situation, Disney further extended its vertical reach by investing in the development of a new cable venture, The Disney Channel, launched in 1983, which allowed the exploitation of Disney content on the additional distribution platform cable television. Disney also decided to vertically integrate into syndication in order to exploit further revenues by licensing the individual film rights of Disney’s by now extensive television content library to independent television stations. The merger presented substantial benefits for both sides: Miramax gained guaranteed access to Disney’s national and international distribution network, and Disney could increase its content product diversity by securing content of the type that it lacked in its Disney, Touchstone and Hollywood Pictures output (Lyons, 2003). Through the Miramax acquisition Disney increased movie output from 18 films per year...
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...the market or to create economies of scale or to enter new markets, or to diversify or a combination of many factors as mentioned in this sentence. Sometimes the only reason an acquire may purchase a business is for speculative profits, in that the sole purpose is to purchase with the intention to split them into smaller pieces and selling them or parts thereof for a price which is much higher than the acquiring price. Mergers and acquisition can also come about because of management failures. This situation can come about because management was unable to move the company in a positive direction which would have maximize shareholders wealth. Some of the issues which can lead to management failures include creating strategies which may be assembled with errors in alignment or market conditions may change during implementation. Mergers and acquisition can be forced on businesses or events can drive companies towards mergers or acquisition. There are many drivers which can lead to mergers and acquisition, some of the more common ones...
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...A. BACKGROUND ANALYSIS 1. Provide a brief description of your company: nature of operations, size (in market capitalization and net income), and which industry it is in. Also list the names of several competitors (at least 3) of your company. In www.finance.yahoo.com, you can find a limited list of your company’s competitors by inputting the ticker symbol or the name of your company and hitting “get quotes”. Then look at the vertical menu on the left part of your screen. Under the COMPANY menu, click on COMPETITORS. If you don’t get at least 3 competitors from Yahoo, you need to find another source. “The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments, these five segments include: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The Media Networks segment operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels Worldwide, ABC Family, and SOAPnet, as well as UTV/Bindass. This segment owns eight domestic television stations. The Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation club properties; a retail, dining, and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water...
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...Protocol market namely Comcast Corporation, Time Warner Cable, Cox Enterprises and Vonage have embraced internet technology and wireless broadband making VOIP one of the most sought out service. Skype’s partnership with AT&T only fuels the boost usage of Voice- over Internet Protocol usage over land line usage. In the wake of these technology advancements, it became clear to entrepreneurs that offered voice traffic and internet service would be one of the next major applications to take full advantage of Voice-over Internet Protocol. There are more advances than innovations in the VOIP world. That’s because some of the most important developments had more to do with commercial and political maneuvers than with technical creativity. One of the most prominent developments was net net neutrality which enables user access to participating networks that advocates no restrictions to materials throughout the modes of communication allowed online ("The mobile World," 2011, para. 4). Further, this industry also have to consider pressures influenced by the government ( FCC) that could dismantle net neutrality by limited user access as well as decrease the power of big wireless communication giants like AT&T. Still, such maneuvers often helped spread the benefits of VOIP much more than technical innovation. And collectively, the advances brought some already evident trends in the increasing integration of voice with other applications and services, not to mention the intensifying interest...
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...about the company AT&T merging with Comcast. In this paper, the industry description introduces the company and explains the history of the company. The supportive argument and the argument against the merger are discussed. Keywords: AT&T, Comcast AT&T Merging with Comcast Initially, Comcast proposed to buy AT&T Broadband for 44.5 billion in assets and 13.5 billion in deficit assumption. AT&T’s committee did not accept the acquisition and Comcast offered to merge with AT&T broadband to establish AT&T Comcast. AT&T assets have been dropping and this coalition would probably help them by letting Comcast, which has a great understanding in the broadband business, work with the many resources AT&T has to present. The merger is set at $72 billion. Comcast thinks the coalition with AT&T will keep them rich and it will get 2.2 million broadband consumers and 22 million co responders, news and entertainment supporters. They are evaluating the merger to decide if the aftermath will be an accomplishment or a downfall (Brinkerhoff, 2010). Industry Description: AT&T, is considered to be a telecommunications industry, and is among the world’s premier voice, video, and data communications companies serving millions of consumers, businesses, and the government. By the research and development capabilities of AT&T, Labs this company runs the world’s largest and most sophisticated communications network, and is the largest cable operators...
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...Home Entertainment: Cable TV vs. Internet Streaming Service Miguel A. Resendiz Campbell University Home Entertainment: Cable TV vs. Internet Streaming In my household we are a family of four which includes my wife, my teenage brother, my daughter and me. When it comes to entertainment, we are very dependent on television. We have some shows that we enjoy as a family and because of the age difference and different interest we also have shows that we enjoy watching independently. The necessity of having a home entertainment that is low priced and adaptable to the needs of the family leads to analyze the decision whether to continue with cable television or switch to internet streaming. Home entertainment in America is constantly evolving side by side with technology. The Cable television industry has been dominating home entertainment market for many years but a new industry is now in the challenge, the new competitor is Internet Streaming Service and is also rising with technology. In his book, On-Demand Culture: Digital Delivery and the Future of Movies, Dr. Tyron explains, “Digital delivery not only affects the economic models of the movie industry but also promotes an on-demand culture, in which the practices of movie-going and the perceptions of media culture are transformed. Movie viewers are now re-imagined as individualized and mobile, able to watch practically anywhere or anytime they wish, while having access to aspects of film culture—such as film festivals...
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...Winter Quarter:2010 NETFLIX: A COMPANY ANALYSIS Prepared By Group 5: Alex Krengel, Annie Dudek, Rick Momboisse, Trish Paik, & Tyler Martin  Table of Contents I. Wall Street Journal Article and Executive Summary ..4 I A. Wall Street Journal Article 4 I B. Executive Summary ..5 II. External Analysis ..7 II A. Industry Definition ..7 II B. Six Industry Force Analysis ..8 II C. Macro Environmental Forces Analysis, Economic Trends, and Ethical Concerns ..15 II D. Competitor Analysis ..17 II D. 1 Netflix’s Competitors ..17 II D. 2 Netflix’s Primary Competitors ..17 II D. 3 Primary Competitors’ Business Level and Corporate Level Strategy ..18 II D. 4 How Competitors Achieve Their Strategic Position ..18 II D. 5 Willingness to Pay ..21 II D. 6 Comparative Financial Analysis ..22 II D. 7 Implications of Competitor Analysis ..23 II E. Intra-Industry Analysis ..24 III. Internal Analysis ..24 III A. Business Definition/Mission ..24 III B. Management Style ..24 III C. Organizational Structure, Controls and Values ..25 III C. 1 Organizational Structure ..25 III C. 2 Organizational Controls ..25 III C. 3 Organizational Values ..25 III D. Strategic Position Definition ..26 III D. 1 Corporate Level ..26 III D. 2 Business Level ..27 III D. 3 Resource & Capability Level ..28 Value Minus Cost Profile ..28 Value Chain ..28 VRIO Analysis ..28 Consumer Retention Analysis ..29 4Ps Analysis ..29 Product Life Cycle ..30 III E. Financial Analysis ..31 III E. 1 Netflix Financial...
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