Time Warner Cable aims to become the premier provider of internet, phone, and television services through innovation and enhancing the customer experience. Its strategic plan over the next 5 years includes increasing market share by 10-15% and customer satisfaction through new programming content and service packages. Financially, it aims to increase revenue 20-25% and profit margins 1-3% over the next 3-5 years. Time Warner will pursue this vision through an offensive generic strategy of adopting competitors' services like mobile pay-per-view and sports streaming apps to gain new customers and market share.

1. Time Warner Cable
Mission Statement:
“Connect people and businesses with information, entertainment and each other.
Give customers control in ways that are simple and easy.”
Outlook:
According to the company’s annual report, the following represents their plan for the future. “In
2011, as in 2010, our focus will be on developing additional ways to give our customers access
to any content they want, any time they want it, and, increasingly, anywhere they are and from
any device they choose. In addition, we will continue to look for strategic, prudent ways to help
grow our existing businesses and focus on new business opportunities as appropriate.”
Vision:
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.
Time Warner Cable has relied heavily on its brand name and strives to maintain its strong market
position and claim as number two in the broadcasting and cable market. These are heavy claims
and burdens that TWC must carry and despite their strong brand name they have been losing
their grip on the market. They have no explicit vision statement listed on their website or 10-K
which could explain their lack of direction and genuine innovation from the company. The vision
statement we formed is intended to embody what it seems that they are striving to become based
upon their annual report and mission’s statement.
Strategic Objectives:
We plan to increase our overall market share by 10-15% in the next 5 years. This will help
TWC move closer to its vision and mission statement. We plan on doing this through a variety of
strategies. We also want to increase our programming content and offer a wider selection of
packages (perhaps this should also be a part of our defensive or offensive strategy). This will
help us penetrate the market more and increase our subscriber base thus increasing our overall
revenue. Through our strategies we would also like to increase our overall customer satisfaction
and surpass Comcast in overall customer satisfaction. This will be done mainly through our
defensive strategies. As TWC continues to grow and innovate we will attain our vision of
becoming the premier service provider and connect consumers to entertainment and with each
other.

2. Financial Objectives:
We plan to increase our overall revenue by 20-25% in the next 3-5yrs. This will help us to
maintain our debt in a better manner and get it under control. The industry is also experiencing
significant increases in video programming cost so we need to continue to increase our revenue
so we aren’t adversely affected. Our company has the lowest programming costs and through
consistent revenue growth we can maintain that ratio. We also want to increase our profit
margins we currently have the lowest profit margins of 9.2% and would like to see that increase
by 1-3% in the next 5 years.
Generic Strategy
Best Cost Provider
The generic strategy we have chosen is the best cost strategy. We chose to be a best cost provider
because there is a huge need to differentiate, but at the same time, there is a need to be
competitively priced. The industry has stiff price competition, which is especially true with the
big industry members, when offering bundles and standalone services that offer individual
services at cheaper prices. TWC needs to differentiate and change its pricing model to be more
competitively priced. One of the weaknesses identified by our SWOT is that we are too
expensive to be competitively priced with the competition. The industry has become very
standardized, especially with the rapid change in technology and how easy it is for industry
members to copy other competitors’ new services or innovations. This is why it is immensely
important for TWC to be able to differentiate itself by offering superior services at competitive
prices. This will also help bring in subscribers particularly because of the weak economic
conditions the nation is experiencing. Consumers are looking for the best value, which makes
offering something beyond the perceived price value to be very important for all industry
members. The best cost strategy works best for us because we do not want to be the lowest cost
provider since that is not economically or logically feasible in this industry. Our debt level is also
significantly high and we would not be able to sustain our financial stability by reducing our
costs drastically lower than competitors. Broad Differentiation would not be effective either
because, although the industry does call for a company to be differentiated, price is something
that can not be ignored and is a significant factor amongst top competitors. Standard and Poor’s
mentions the stiff price competition, referring to it as the “battle of the bundles,” because
customers want the best service at the best price. Broad differentiation requires companies to try
and raise the prices, which is something TWC cannot do since raising our prices any higher
would very likely decrease revenues and make our company unattractive to consumers. The
focused or niche market would not work for us because there is not a huge or significant niche
market that we can rely on to notably increase our revenue or market share.

3. Offensive Strategies
We choose to use offensive strategies to supplement our generic strategy because we are
beginning to lose market share and our strong market position as the 2nd largest cable
broadcasting company in the industry. We need to introduce some new services and adopt some
of our competitor’s services and improve upon them. This will allow us to overtake our
competitor’s market share and help set ourselves apart from industry members by improving
upon their own services and marketing those improvements.
Adopt and Improve competitor’s Services
Pay Per View Mobile App
The Pay per View app will allow our subscribers to access the content they already love on their
tablet and Smartphone devices. We offer subscribers access to pay per view events already but,
this will allow them to access that content on the go. We would make the price between $2.99-
$3.99, we based the price on the table below which shows what percentage of adults buy apps
and at what price.

4. Strategic Rationale:
The amount of revenue pay per view events bring in is between $150-$200 million dollars for
just one event. These events are usually seasonal but can allow for a new revenue stream that we
can count on periodically through the year. Our SWOT also mentions an opportunity for
streamlined content and this is an opportunity to appeal to the rising Smartphone and tablet
generation. One of the major trends in the industry is a push for more wireless capabilities and
this is a way to reach that segment of the populous in order to keep up with the rising TV
everywhere concept taking over the industry.
Objectives and Vision:
Releasing this pay per view app will help us to increase our customer retention from year to year
by staying on top of the trends and services customers’ desire from industry members. There has
been a big push for TV everywhere and we must give the consumer what they want so we can
stay ahead of the competition. This will increase our subscriber base and our overall revenue by
staying on top of current societal trends and make use of new technological capabilities.
The amount of revenue pay per view events bring in is Implementation Strategy (not sure what
you mean by this):
1. Phase 1
a. Consumer research on the most popular pay per view events
2. Phase 2
a. Acquire the licensing rights to the specific pay per view events we found to be
very popular
b. Allow subscribers to view the event live
3. Phase 3
a. Release the app to subscribers in the 5 major states we operate
b. Make it free for current customers and offer it at a discount for new customers
4. Phase 4
a. Monitor progress of the app in the 5 major states and begin to release the app to
subscribers in other states.
Sports Package mobile App
This App will provide the opportunity for subscribers to access a variety of sports content on
their mobile devices. There are services like DirecTV’s NFL Sunday Ticket and Comcast’s MLB
extra innings that allow subscribers to watch a vast amount of live sporting events on their TV or
laptop. This will allow them to take that same entertainment and make it available on mobile
devices so that subscribers won’t miss a game. The subscriber would have a choice of what
sports package they would want to pay for and the app would come with that package of their
choice for an extra $2. We plan to offer the sports we have licensing rights to and begin to

5. expand into other sports that could deem a profitable venture. This also allows us to reach a more
diverse American population by branching out to sports not highly favored in the US. This
allows TWC to keep up with the trend of diversity in society and opens up the door to possibly
reach to an international market.
Strategic Rationale:
One of the opportunities that our SWOT analysis presented was streamlined content which
allows us to target a huge niche segment. According to Pew research 74% of people who
download apps; download apps that 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. There is also another statistic from Pew research that shows 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 also for tablet and smart phones.
Objectives and Vision:
This will help fulfill our strategic objective of improving our programming content and offering
a wider selection. This will also in turn increase our subscriber base which will help us increase
revenue because revenue is heavily dependant on our subscriber base. TWC’s least profitable
segment is mobile strengthening, therefore increasing the revenue stream in that segment will

6. help make them a stronger company in all areas. We desire to be the premier service provider of
internet, phone and TV and we can’t do that without improving and strengthening our phone
segment. Continuing to innovate and increase our market share ties back to the vision of
becoming the number one company in this industry.
Implementation Strategy:
1. Phase 1
a. Acquire the licensing rights to allow mobile access
2. Phase 2
a. Test the mobile app in states we primarily operate
3. Phase 3
a. Implement the mobile app to all subscribers
b. Allow current subscribers access to the mobile app if they have purchased a sports
package
c. New subscribers offer sports packages at a discount for a limited time with first
release of the app
4. Phase 4
a. Monitor the results and add new sports that would be profitable
New Services Market
Down to Earth
This is a service based upon what Ultraviolet is doing at the moment. The service will allow
consumers to manage, watch and purchase movies, music and TV shows. The subscriber would
first need to start a cloud account with us for $15. This will allows subscribers buy the movie or
order a season of the TV show they’re watching with their Smartphone or tablet while watching
a TV show or movie. When the subscriber hears a song or some music they want; they’ll be able
to buy it immediately from their wireless device. There will be a notification on the top of their
mobile device when they access our app so that when various songs, TV shows and movies come
up on the screen they’ll be able to drag it down and buy it. All of the devices (up to ten) that are
registered with us will share the same pool of information that can be accessed from any mobile
device. Customers will be able to share, manage, purchase and watch TV shows, music and
movies.
Strategic Rationale:
This is one big opportunity from our SWOT, it combines several opportunities including
streamlined content, strategic alliances and cloud computing. This also capitalizes on a service
we kind of already offer to consumers as well. Our EBIF service allows subscribers access to
coupons and special offers as they watch TV this would be improving that service and taking it
to another level. We are also capitalizing on a service that DirecTV and Ultraviolet offer which

7. reduces the amount of R&D we have to do for this service. This also can open up new revenue
stream opportunity. No other competitor is doing this in the industry so this allows us to be the
first one’s in the market to offer this type of service.
Objectives and Vision:
This is an immense opportunity for TWC to become a premier service provider by truly
enhancing the customer experience. This will open up a new revenue stream and allows us new
opportunities with the strategic alliances we’ve formed. This will let us fulfill our strategic
objective of expanding our programming content. We also wish ?
Implementation Strategy:
1. Phase 1
a. Form a Strategic Alliance with Amazon and Time Warner Inc
b. Begin to work together
2. Phase 2
a. Test it in the market
b. Improve and adjust any areas of error
3. Phase 3
a. Implement it to the market
b. Monitor results
Customer Loyalty Programs
The customer loyalty program we would like to introduce involves satisfying our current
subscribers and attracting new ones. The initial introduction of the loyalty program would be to
offer a premium service or cash discount to subscribers who have been with us for 1-2yrs.
Subscribers who have been with us for at least 2 years or more would get the same discount or
promotion offer that they may have initially enticed them to pay for our services. To attract new
subscribers we would market our new loyalty program and let them know about the various
incentives. We would offer them a cash discount or premium service for at least 6 months to a
year of continuous service. We also want to give our subscribers several benefits and discounts
to pass along to friends and family, customers would be able to refer a friend and both parties
would receive benefits. This can allow us to reach increase our subscriber and improve our brand
loyalty among consumers.
Strategic Rationale:
One of the Key success factors for our industry was customer relations. Our SWOT also showed
that one of our prime weaknesses was our customer service. A customer loyalty program is
something Time Warner Cable, as well as other top competitors in the cable, satellite, and
broadcast industry, do not have. By having a customer loyalty program, Time Warner Cable will

8. be able to achieve an advantage by being the only one to have a program which helps and
rewards customers. A customer loyalty program assists in customer retention and relations
through providing customers with incentives, free products/services, discounts, etc. which would
make the customers want to continue being a customer of whatever company is utilizing this
program. Time Warner Cable would be able to increase its customer base by keeping its
customers from going to other competitors like Comcast or DirecTV through such a program and
ultimately increase revenue. Along with this, a good customer loyalty program will generally
bring in new subscribers by word-of-mouth from current customers who were satisfied by the
program and would also increase revenue for Time Warner Cable through the increase in
subscriber population. Finally, a customer loyalty program will reflect upon the image of a
company and if done well, will provide an excellent image of the company that will bring in
more customers and keep current customers happy, ultimately leading to an increase in revenue
and image recognition amongst the general population. Overall, a customer loyalty program will
provide Time Warner Cable an advantage over other top competitors by increasing its revenue
through customer retention, bringing in new customers, and helping to provide a better image of
Time Warner Cable in order to spread its name more and more throughout the country.
Objectives and Vision:
One of the key phrases from our vision is enhancing the overall customer experience and
satisfaction. This will help show our subscribers that we care and we appreciate them for their
loyalty and commitment. We also want to build upon our brand name and increase brand loyalty.
This will help increase our customer retention which will increase our revenue from year to year
because we won’t be losing as many customers. We have the lowest customer satisfaction among
the top industry members so we must change the customer experience. The customer loyalty
program will also allow us to surpass Comcast with customer satisfaction. This will help us to
fulfill another part of our strategic objective. Our market share will continue to grow as well as
we increase our subscriber base and revenue. This will help us become the premier service
provider in the industry and enhance our customer’s experience with our company.
1. Phase 1
a. Consumer Research
b. Look at current subscribers to see who bought during a promotion period
2. Phase 2
a. Interpret and Analyze the data
b. Which promotional periods brought in the most customers
c. Begin to structure a loyalty program
3. Phase 3
a. Implement the loyalty program to subscribers
b. Begin to market the program to consumers
4. Phase 4
a. Keep improving because it will constantly change

9. b. Continuous consumer research
Defensive Strategies
We choose to use defensive strategies because we’ve been experiencing a loss in our market
share and in the amount of subscribers we’ve been losing each year. We need to defend our
position against stand alone services and other smaller competitors in the industry. We have such
a strong brand name we need to continue to make sure that image isn’t blemished because we’ve
been lacking in certain areas. This will allows us to defend the market share we do have and
continue to strengthen our brand name among consumers.
Customer Service:
Increase customer care center locations
We would like to open more customer care centers so that we can readily meet one on one with
our customers. This will allows us to personally handle any problems or issues that may arise.
We want there to be a face to our company and not just a symbol or slogan. This will help to
increase brand loyalty as they build relationships with our staff. We primarily operate in 5 states
and this will allows us to branch out our operations and establish our presence in other states and
increase our brand name penetration. The customer care centers will be equipped to handle any
technical issues and be strategically located in the state to establish convenience and allow our
staff to be readily available to handle any issues with a speedy response.
Strategic Rationale:
Having many different customer care centers in more locations in the U.S. will help to increase
customer satisfaction by being able to meet with customers one-on-one, discuss possible
problems, and find solutions to answer those problems. Not only will having more locations with
customer care centers increase customer satisfaction, it will also help in expanding Time Warner
Cable’s brand name by being spread out more across the U.S. It will also help in keeping more
customers as well as since customer service will become more personal with the option of a one-
on-one conversation and will increase satisfaction. This increase in customer satisfaction will
help to bring in more customers because customers are being satisfied and their issues are being
resolved efficiently, which will bring in more revenue. Overall, more customer care centers
equals increased customer satisfaction, and satisfied customers equal more revenue.
Objectives and Vision
TWC must strive to become the number service provider and that cannot be done if our
customer’s aren’t satisfied. We must also handle any and all technical issues so that customers
can continue to enjoy the best our company has to offer them. Enhancing the overall customer
experience and satisfaction means speedy responses and less technical issues and problems. The

10. less our customers call us, the better it is for everyone. This will help increase customer retention
and strengthen our brand name. It will also help us meet our strategic objective of increasing
market share growth by acquiring and retaining more customers year after year. It has the added
benefit of helping us surpass Comcast in customer satisfaction and in the years to come, be at the
top of the industry in overall satisfaction. Our financial objectives will also be met by increasing
subscribers our revenue will continue to grow and we should be able to increase our profit
margins.
1. Phase 1
a. Look into the states with our highest subscriber base
2. Phase 2
a. Expand and build customer care centers in our next 4 biggest states
b. Expand more into the Midwest open location in Chicago
3. Phase 3
a. Monitor results and continue to expand and open up new customer care centers
every 6 months to a year
Revamp current website
Strategic Rationale
Revamping our current website may prove to be very important because our website, as it is
now, is ineffective in relaying information, especially in comparison to our competitors. At this
point in time, it is not possible for a prospective customer to quickly view pricing information on
the packages we offer. When we were first researching this company, we realized that we were
unable to obtain pricing information from their website and so we had to Google it in order to
find out the information. We later learned that the information is available on the website;
however, it is difficult to find and this issue is definitely something we want to correct. While it
is important to us that customers are able to find pricing information, this is certainly not the only
thing we will change about the website. We will also change the website to make it easier for the
customer to understand and traverse the information that is on the website so that they will have
a better experience. Overall, we just want to make the website very informative and easily
navigable so as to increase customer satisfaction and when we are done, we expect for the
average consumer to have a much more pleasurable experience from our company’s website. If
we accomplish what we want to do with our website, it will also have the potential to obtain
more consumers since more people will be experiencing less irritation and displeasure when
trying to access our information online via our website. In addition, we also plan to obtain
information about the helpfulness and ease of the website through customer service so that we
can constantly adapt to changing consumer needs.

11. Objectives and Vision
This will support our vision of enhancing overall customer experience and satisfaction. We want
our current subscribers, as well as the general public, to be able to access our information online
quickly and effectively without it being a disutility to them. By improving upon our website, we
will be able to draw in more people and satisfy current customers. We recognize the hassle our
current website causes people and will work toward getting rid of anything that dissatisfies the
customer completely by making continual adjustments.
1. Phase 1
a. Look at other successful competitors
2. Phase 2
a. Scrap current website and begin to rebuild
3. Phase 3
a. Test website
b. Make adjustments
4. Phase 4
a. Introduce new website to consumers
Change pricing model(should we change this to cost?)
One thing we have noticed about Time Warner Cable is that they are quite pricey. In most
instances, the company charges $20 more than the competition for their packages. Of course, the
innovative services we plan to introduce into the market will likely persuade consumers that they
are paying more for the best services; however, we can do this without being priced so far above
our competitors. We would like to reduce the price of all of our plans by at least ten dollars if not
more. By doing this, we will make it so that we will be more competitively priced and expect to
retain and gain more customers, generating more revenue than before at our new lower price.
Strategic Rationale
Time Warner Cable has the lowest programming costs in the cable and broadcast industry and
because of that, we have been able to lower costs in other areas. This is even more reason for
Time Warner Cable to lower its prices since we can afford to do so with the decrease in costs and
expenses and we will also be generating revenue with increased customer retention and an
increase in new subscribers due to the lower prices.
Objectives and Vision
This supports our financial objective of increasing our revenues by twenty and twenty five
percent. We expect our revenues to increase by lowering our price while still offering great

12. services to our customers. By making our packages more affordable, we will draw in more
customers who may not have been willing to pay such a premium price for the services we offer.
This also supports our Best Cost strategy in which our company will shift its business model to
focus on lowering our prices while still continuing to offer innovative services.
Lower Prices(should we change this to cost?)
1. Phase 1
a. Look at competitor’s pricing models
2. Phase 2
a. Adjust and build upon our tiered system
b. Match prices to be competitively priced with competitor’s
3. Phase 3
a. Implement the new pricing model in the 5 major states
b. Monitor results and make adjustments as we see fit
4. Phase 4
a. Implement the new pricing model to all subscribers
b. Continue to monitor results