SlideShare a Scribd company logo
Presented by: David Green, Tiffany Gray, Frankie
      Miamen, Nick Foster, and Tobi Coker
   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.
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 Rate
Mergers/Acquisitions and Joint Ventures   Piracy/Alternative Sources of Video
                                                     Cord Cutting
   Time Warner             Shift from Broad
    Cable is currently       Differentiation
    operating under a        strategy to Best
    Broad                    Cost Strategy.
    Differentiation
    strategy.
Company             Bundle Packages      Basic Packages (just Double Play                 Internet Alone          Voice Services
                                         TV)                                                                      Alone
Time 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/A

Dish 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)
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.
   Offensive
     Gain Market Share
     Need to innovate
   Defensive
     Need to Strengthen market position
     Improve upon our weaknesses
   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.
   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
Strategic Rationale
    Increase Customer Retention
    Attract More customers
    Increase Brand Loyalty
    Raise switching Costs
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
Strategic Rationale
    Capitalize on opportunities presented
    in the SWOT
        Streamlined Content
        Cloud Computing
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
Strategic Rationale
 Enhance our brand image
 Increase Customer Retention
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
Strategic Rationale
 Too expensive
 Need to be more competitively priced
 Increase subscriber base and retention rate
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
Company             Bundle Packages       Basic Packages (just Double Play                 Internet Alone          Voice Services
                                          TV)                                                                      Alone
Time 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/A

Dish 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)
Key Success Factor/Strength                Time Warner Cable     Comcast Corp.      DirecTV            Dish Network
Measure                                    Inc.

                              Importance   Strength      Score   Strength   Score   Strength   Score   Strength   Score
                              Weight       Rating                Rating             Rating             Rating

Consumer Relations            0.10         6.0     8.0   0.8     7.0        0.7     10.0       1.0     8.0        0.8

Economies of Scale            0.17         8.0           1.4     10.0       1.7     9.0        1.5     3.0        0.5

Location/Reach                0.23         6.0     7.0   1.6     9.0        2.1     8.0        1.8     5.0        1.2

Clever Marketing              0.12         8.0           1.0     7.0        0.8     7.0        0.8     7.0        0.8

New Service Innovation        0.23         6.0     8.0   1.8     9.0        2.1     7.0        1.6     7.0        1.6
Capabilities
Programming                   0.15         9.0           1.4     10.0       1.5     8.0        1.2     5.0        0.8

  Sum of Importance           1.00
Weights
Weighted Overall Strength                  43.00         7.03    52.00      8.88    49.00      8.02    35.00      5.66
Rating                                     46.00         7.62
Time Warner Cable Strategy

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Time Warner Cable Strategy

  • 1. Presented by: David Green, Tiffany Gray, Frankie Miamen, Nick Foster, and Tobi Coker
  • 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. 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 Rate Mergers/Acquisitions and Joint Ventures Piracy/Alternative Sources of Video Cord Cutting
  • 4. Time Warner  Shift from Broad Cable is currently Differentiation operating under a strategy to Best Broad Cost Strategy. Differentiation strategy.
  • 5. Company Bundle Packages Basic Packages (just Double Play Internet Alone Voice Services TV) Alone Time 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/A Dish 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. 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. Offensive  Gain Market Share  Need to innovate  Defensive  Need to Strengthen market position  Improve upon our weaknesses
  • 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.
  • 10. 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
  • 11. Strategic Rationale Increase Customer Retention Attract More customers Increase Brand Loyalty Raise switching Costs
  • 12. 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
  • 13. Strategic Rationale Capitalize on opportunities presented in the SWOT Streamlined Content Cloud Computing
  • 14. 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
  • 15. Strategic Rationale  Enhance our brand image  Increase Customer Retention
  • 16. 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
  • 17. Strategic Rationale  Too expensive  Need to be more competitively priced  Increase subscriber base and retention rate
  • 18. 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
  • 19. Company Bundle Packages Basic Packages (just Double Play Internet Alone Voice Services TV) Alone Time 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/A Dish 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)
  • 20. Key Success Factor/Strength Time Warner Cable Comcast Corp. DirecTV Dish Network Measure Inc. Importance Strength Score Strength Score Strength Score Strength Score Weight Rating Rating Rating Rating Consumer Relations 0.10 6.0 8.0 0.8 7.0 0.7 10.0 1.0 8.0 0.8 Economies of Scale 0.17 8.0 1.4 10.0 1.7 9.0 1.5 3.0 0.5 Location/Reach 0.23 6.0 7.0 1.6 9.0 2.1 8.0 1.8 5.0 1.2 Clever Marketing 0.12 8.0 1.0 7.0 0.8 7.0 0.8 7.0 0.8 New Service Innovation 0.23 6.0 8.0 1.8 9.0 2.1 7.0 1.6 7.0 1.6 Capabilities Programming 0.15 9.0 1.4 10.0 1.5 8.0 1.2 5.0 0.8 Sum of Importance 1.00 Weights Weighted Overall Strength 43.00 7.03 52.00 8.88 49.00 8.02 35.00 5.66 Rating 46.00 7.62