Time Warner Cable Strategy

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Several strategies my team came up with to help Time Warner Cable to become more competitive in the market place.

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Time Warner Cable Strategy

  1. 1. Presented by: David Green, Tiffany Gray, Frankie Miamen, Nick Foster, and Tobi Coker
  2. 2.  Company’s Mission Statement *“Connect people and businesses with information, entertainment and each other. Give customers control in ways that are simple and easy.” Vision Statement *To become the premier service provider of internet, phone and television by leading the market in innovation while enhancing the overall customer experience and satisfaction.
  3. 3. Strengths: Weakness: Brand Name Failure to Innovate Strong Market Position Expensive Programming Variety Significant Debt Consistent Revenue Growth Legal Investigations Lowest Programming Cost Heavy Dependence of Suppliers Social Responsibility Requires Personal Information Diversity Customer Service Opportunities: Threats: Online Video Content Stand Alone Services International Market Heavy Competition Fiber Optics Government Regulations Growth of HDTV/3D Licensing Rights Cloud Computing Economic Recession Rapid Technological Changes Slow Industry Growth RateMergers/Acquisitions and Joint Ventures Piracy/Alternative Sources of Video Cord Cutting
  4. 4.  Time Warner  Shift from Broad Cable is currently Differentiation operating under a strategy to Best Broad Cost Strategy. Differentiation strategy.
  5. 5. Company Bundle Packages Basic Packages (just Double Play Internet Alone Voice Services TV) AloneTime Warner Cable $124.85 / month $49.95/month $84.90/month (TV & $34.95/month (High $39.95/month (TV, Internet, Internet) Speed) Phone)Comcast Corp. $99 / month (TV, $29.99 (over 80 $69.99/month (TV & $29.99/month (High $29.99/month Internet, Phone) channels, including Internet or Voice) Speed) on Demand movies & TV shows)DirecTV $75 / month (TV, $29.99 (Over 150 *Only available after *Only available after *Only available Internet, Phone) digital channels) ordering service through a ordering service after ordering “bundle specialist” through a “bundle service through a specialist” “bundle specialist”Verizon Fios $84.99 / month (TV, $64.99 (TV & Internet) $49.99 (with home Internet, Phone) N/A $59.99 (TV & Phone) phone service) N/ADish Network *Pricing only $29.99 (Top 120 Not sure if this is Not sure if this is Not sure if this is available after channels) available. available. available. ordering service.AT&T U-Verse $89.00/ month (TV, $34/month $64.99/month (TV & $39.95 (High Speed) Available through Internet, Phone) Internet) AT&T Wireless & 59.95/month(Internet & Home. Phone)
  6. 6. Financial Objectives Strategic Objectives Increase overall  Increase overall market revenue by 20-25% in share by 10-15% in the the next 3-5yrs next 5 years. Increaseprofit margins  Increase overall by 1-3% in the next 5 customer satisfaction years.
  7. 7.  Offensive  Gain Market Share  Need to innovate Defensive  Need to Strengthen market position  Improve upon our weaknesses
  8. 8.  Strategic Rationale  74% of people apps downloaded by people allow them to regularly get updates on sports, news, weather and stocks.  This will allow us to stand out and offer something that other competitors aren’t doing at the moment.  43% of people download apps that allow them to watch TV and movies. The demand is there for more streamlined line content not only on laptops but, for tablet and smart phones.
  9. 9.  Implementation Strategy: Phase 1  Acquire the licensing rights to allow mobile access Phase 2  Test the mobile app in states we primarily operate Phase 3  Implement the mobile app to all subscribers  Allow current subscribers access to the mobile app if they have purchased a sports package  New subscribers offer sports packages at a discount for a limited time with first release of the app Phase 4  Monitor the results and add new sports that would be profitable
  10. 10. Strategic Rationale Increase Customer Retention Attract More customers Increase Brand Loyalty Raise switching Costs
  11. 11. IMPLEMENTATION STRATEGYPHASE 1 Consumer Research Look at current subscribers to see who bought during a promotion periodPHASE 2 Interpret and Analyze the data Which promotional periods brought in the most customers Begin to structure a loyalty programPHASE 3 Implement the loyalty program to subscribers Begin to market the program to consumersPHASE 4 Keep improving because it will constantly change Continuous consumer research
  12. 12. Strategic Rationale Capitalize on opportunities presented in the SWOT Streamlined Content Cloud Computing
  13. 13. IMPLEMENTATION STRATEGYPHASE 1 Enter into agreements with Amazon and Time Warner IncPHASE 2 R&D on technological capabilities needed to implement the servicePHASE 3 Test it in the market Improve and adjust any areas of errorPHASE 4 Implement it to the market Monitor it to the market Monitor results
  14. 14. Strategic Rationale Enhance our brand image Increase Customer Retention
  15. 15. Implementation Strategy Phase 1  Look into the states with our highest subscriber base  Do customer reviews to see where we fail  Re-evaluate our training program and system Phase 2  Expand and build customer care centers in the states where most of our subscribers reside  Expand more into the Midwest open in Chicago  Begin to design a new training program and improve Phase 3  Monitor results and continue to expand and open up new customer care centers every 6 months to a year  Implement the new program  Current employees must go through training again and monitor results
  16. 16. Strategic Rationale Too expensive Need to be more competitively priced Increase subscriber base and retention rate
  17. 17. Implementation Strategy Phase 1  Look at competitors pricing models Phase 2  Adjust and build upon our tiered system  Match prices to be competitively priced with competitors Phase 3  Implement the new pricing model to all subscribers
  18. 18. Company Bundle Packages Basic Packages (just Double Play Internet Alone Voice Services TV) AloneTime Warner Cable $124.85 / month $49.95/month $84.90/month (TV & $34.95/month (High $39.95/month (TV, Internet, Internet) Speed) Phone)Comcast Corp. $99 / month (TV, $29.99 (over 80 $69.99/month (TV & $29.99/month (High $29.99/month Internet, Phone) channels, including Internet or Voice) Speed) on Demand movies & TV shows)DirecTV $75 / month (TV, $29.99 (Over 150 *Only available after *Only available after *Only available Internet, Phone) digital channels) ordering service through a ordering service after ordering “bundle specialist” through a “bundle service through a specialist” “bundle specialist”Verizon Fios $84.99 / month (TV, $64.99 (TV & Internet) $49.99 (with home Internet, Phone) phone service) N/A $59.99 (TV & Phone) N/ADish Network *Pricing only $29.99 (Top 120 Not sure if this is Not sure if this is Not sure if this is available after channels) available. available. available. ordering service.AT&T U-Verse $89.00/ month (TV, $34/month $64.99/month (TV & $39.95 (High Speed) Available through Internet, Phone) Internet) AT&T Wireless & Home. 59.95/month(Internet & Phone)
  19. 19. Key Success Factor/Strength Time Warner Cable Comcast Corp. DirecTV Dish NetworkMeasure Inc. Importance Strength Score Strength Score Strength Score Strength Score Weight Rating Rating Rating RatingConsumer Relations 0.10 6.0 8.0 0.8 7.0 0.7 10.0 1.0 8.0 0.8Economies of Scale 0.17 8.0 1.4 10.0 1.7 9.0 1.5 3.0 0.5Location/Reach 0.23 6.0 7.0 1.6 9.0 2.1 8.0 1.8 5.0 1.2Clever Marketing 0.12 8.0 1.0 7.0 0.8 7.0 0.8 7.0 0.8New Service Innovation 0.23 6.0 8.0 1.8 9.0 2.1 7.0 1.6 7.0 1.6CapabilitiesProgramming 0.15 9.0 1.4 10.0 1.5 8.0 1.2 5.0 0.8 Sum of Importance 1.00WeightsWeighted Overall Strength 43.00 7.03 52.00 8.88 49.00 8.02 35.00 5.66Rating 46.00 7.62

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