Company Overview Free Essay Example

Company Overview

In 1963, the triumvirate of Julian Brodsky, Daniel Aaron, and Ralph Roberts founded the Comcast Corporation. Roberts bought the first cable system in Mississippi, and was first known as American Cable Systems. Eventually, the firm was incorporated and revamped as Comcast when they relocated in Pennsylvania in the late ‘60’s. Industry pundits speculate that the company’s name is in reference to Communications and Broadcasting, thus the name “Comcast”. Arguably, the largest cable television provider in the world, Comcast is a considered as the world’s second largest Internet service provider in the world.

Comcast is an adamant firm in the field of programming.

The firm owns a plethora of cable channels such as: Comcast TV, Comcast Sportsnet, Style Network, Entertainment Television, and Comcast Spectator. The Comcast Network provides subscribers of Cablevision and Comcast, and brings them news around the United States though focusing on Pennsylvania and Washington areas. Comcast puts a premium on sports entertainment as well; it promotes Altitude Sports, which is the official telecast provider of NBA and NHL fames in the Colorado.

The Comcast Entertainment Television has become a crucial and integral channel for the state’s Emergency Alert System, and aids Metro Denver residents in emergency situations.

At present, Comcast employs more than 100,000 people, which serves over 50 millions of its subscribers that are divided into cable customers, digital cable customers, internet users, and voice clients. A commitment that Comcast adheres from its mission statement: “To seek out new communications technology, new opportunities, and more choices.

To provide people with the communications products and services that connect them to what’s important in their lives.” (Comcast, 2008).

SWOT Analysis

Comcast perceives mergers as a crucial part of its external operations. The firm has collaborated with MediaOne, which resulted to the Comcast’s Internet service – AT&T Broadband. Both firms agreed to the $60 billion merger in order to launch AT&T Broadband. Comcast is adamant in acquiring large-scale edifices in order to promote their brand. It acquired the rights and royalties of the University of Maryland’s new basketball stadium, which they purchased for $25 million, and named it the Comcast Center Arena. The firm has proposed the building of a new flagship skyscraper in central Philadephia in 2005 called Comcast Center. The majestic Comcast Center is Pennsylvania’s tallest edifice measuring as high as 1000 ft. Comcast stockholders have been clamoring for increased prices for raw materials used in their broadcasting and communications equipment. Usually, these suppliers are responsible for the prices of raw materials to increase. Suppliers have gained the notoriety of manipulating the cost of raw materials, which generates a deliberate effect on the firm’s part. Suppliers are more manipulative whenever the number of suppliers is low. This gives the handful of suppliers to raise the price of raw materials, which in turn leaves firms line Comcast no further options to purchase commodities of lower cost. At present, Comcast employs more than 100,000 people, which serves over 50 millions of its subscribers that are divided into cable customers, digital cable customers, internet users, and voice clients (Comcast, 2008).

A broadcasting company like Comcast is usually responsible for improving the working conditions in their operating areas. The firm provides the much-needed technical assistance, which help augment the performance of both broadcasting consultants and floor employees. Buyer power is considered the spending capacity of the consumer. In the broadcasting industry, the buyer power is strong. This aspect simply states that the buyer or the consumer has always has a “say” on the price of a specific service like internet and cable services. Furthermore, buyer power is considered crucial due to the fact that it has a deliberate impact on the industry. However, broadcast firms such as Comcast has a discreet mutual arrangement regarding the aspect of buyer power. These intangible mutual contracts between the firm and its consumers have been apparent for quite some time now. Firms have been empowering consumers to augment their buyer power. Buyer power has a relationship with supplier power as well.

Comcast opines for the cost of raw materials it acquires from its suppliers. Buyer power is quite a delicate matter to elaborate on. The asymmetry between the buyer and the industry generates a handful of discrepancies, which contributes to an inconsistent market condition and prevents forward integration for a firm like Comcast (Comcast, 2008).

Broadcasting giant Comcast is considered the “Coke” of the Internet and Cable TV industry. Its brand is synonymous with innovative services that entertain people, as well as augment a myriad of business processes for numerous firms. In 2005, its AT;T Broadband and Adelphia acquisitions have catapulted its sales resulting to an increased in profit margins by $500 per share and $4,300,000 in net profit. Apple’s renewed brand distinction has augmented the sales of Macintosh computers as well. Its linchpin for its sudden rise in the sports entertainment industry has been its Comcast Sportsnet channels, Comcast Sports channels have ushered potential market segments that complement the brand management of Comcast. Furthermore, Comcast’s wide array of cable services and channel providers has been doing well with its sales, contributing to the firm’s revenue generation and increasing its profit margins (Comcast, 2008).

Brand Management has been one of the strengths of the Comcast Company. Its logo alone is etched on numerous minds of consumers. Comcast is considered one of the most recognized and established cable provider in the world. Cable TV enthusiasts and consumers consider Comcast as a lifestyle and not as a brand alone, “lifestyle” in terms of what the firm has to offer with its products such as cable TV and Internet services. This charismatic and apt brand management of Comcast has enticed more consumers that they patronize every service that is promoted by Comcast. With this in mind, the firm has generated a myriad of opportunities for its services.

However, brand management is not enough to avoid the firm’s flaws in terms of quality assurance. Comcast’s series of setbacks has been associated with some minor flaws in its customer relations division. The firm has made a poor performance in terms of quality control such as poor customer service. For instance, a Comcast representative has argued with a client. Eventually, a client named Mona Shaw went to Comcast’s office, and wreaked havoc by destroying office equipment before being arrested. The firm’s customer service quality has been criticized in blogs and lobbyists’ website that bash the firm’s mediocre services. Notable media columnist, Bob Garfield, has lambasted Comcast with harsh statements citing the firm’s inability to address the particular and isolated demands of its clientele.

It should be noted that Comcast owes its financial status to its equity. The firm has a plethora of investors due to the fact that the firm does not have any pending debts. Comcast is more than financially capable, and has enough funds to acquire any firm in order to augment the company’s operations and its revenue generation. The apparent threat of alternative or substitute products is a common adversity for Comcast. A number of cable providers have always attempted to overwhelm Comcast’s market share through attempts in cheaper price movements in terms of services in order for consumers to consider other providers such as Comcast. The subject of price elasticity surfaces whenever the price change of an alternative service affects as the demand for such service.

 The industry where Comcast thrives is saturated by a bevy of substitute services, which to tend to constrained the ability of these companies to make an increase in prices. The Internet and Cable TV industry is always sporadic and innovative in terms of its Research and Development, which can draw consumers to purchase their products and services. The outcome is a letdown in sales for Comcast. Comcast services have a myriad of opportunities, which will augment its operations in order increase their net profit margins and generate revenues.

References

Comcast. (2008). About Comcast Corporation. Retrieved October 4, 2008

fromhttp://www.comcast.com/Corporate/About/Corporateinfo/Corporateinfo.html?lid=1AboutCorporateInfo;pos=Nav

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