Comcast Corporation Harvard Case Solution & Analysis

Comcast Corporation Case Solution

Subject: Evaluation of the possible alternatives for responding efficiently to the changes in the dynamics of the industry

The purpose of this memo is to highlight the possible alternatives we have for responding to the changed parameters in the cable and internet service providing industry. Through the analysis we will be able to analyze the transformed subscriber preference and their demographics. Based on the analysis, we would be able to efficiently analyze what strategy would be most feasible for the company and will help in sustaining the market share.

Popularity of the trend of watching shows on multiple screens has rapidly increased amongst the young segment of subscribers. The chords are being cut by the subscribers and the cancellation rate of subscriptions is rising as they will be able to access their favorite shows with no subscription fees. On the other hand, the comparatively elder segment of the industry is still willing to pay for subscriptions fees for their shows as their need are supported by higher levels of income.

RECOMENDATIONS:

1. Develop a Standalone Product:

Comcast can develop its own standalone product with 0 subscription fees for attracting the young ones in the U.S. Comcast will be able to cater to the young demographics of the market. This product can actively play its part in helping the corporation in sustaining their position in the market. With the new product, Comcast would be able to target the younger ones interested in watching their favorite shows on multiple screens, whereas with its traditional broadcasting of channels it can cater to the individuals over the age of 30 who prefer watching their subscribed channels on their Television sets.

PROBLEM STATEMENT

“What strategic changes or developments can guide Comcast Corporation to respond efficiently to the changed dynamics of the industry?”

ANALYSIS:

SCQ ANALYSIS:

Situation:

It is already known that Comcast Corporation has been the largest cable service provider in the U.S. The company has been successfully generating revenues worth $64.7 billion through providing efficient cable and internet services. Comcast Corporation has a total of 13600 employees who support the operations of the company and deliver the promised services to the subscribers. Comcast Corporation mainly deals in providing cable television, internet services, and voice-over-internet-protocol and content production services.

The business model of Comcast Corporation is under siege due to the partnership of Apple and HBO which will eliminate the role of cable providers. The company might lose its share in the market if we don’t respond to the changing in the industry. Comcast must respond to the situation in order to remain competitive in the market. As in the previous years, Comcast Corporation has been able to overcome the challenges it

has been presented. Joining hands with Apple would not be the solution to the crisis as Comcast would get nothing out of it.
HBO provides its content to a count of 41 million U.S. subscribers and the channel generates revenues worth$4.9 billion, out of which the profits account for $1.7 billion. HBO has the opportunity of persuading 10-15 million TV households towards using multiple screens for watching their favorite shows as it has no subscription fees as compared to cable services. The competitors of Comcast Corporation have also adopted the situation and are establishing new strategies to meet the changing requirements of the subscribers. A competitor of Comcast Corporation named CBS, has introduced its standalone product which has no subscription fees called “CBS All-Access.” All these changes in the market must be tackled efficiently, and if not handled through efficient strategic changes to the business model;then Comcast Corporation might face a vast decrease in its subscriptions and revenues...............

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