Comcast has an opportunity to bring its properties together from the content side. As the computer replaces the television -- a social and technological environment phenomenon -- the flow of content through channels needs to keep pace. Only recently has the company begun exploring the possibilities in taking its cable properties to the online sphere (McClatchy-Tribune News Service, 2009). This may result in two distinct parts of the organization coming together to deliver multichannel solutions for Comcast's proprietary and licensed content.
Comcast also has an opportunity to expand geographically. The company operates in 39 states, meaning there are 11 more to be entered. This provides an excellent market opportunity for Comcast to grow without making substantive changes to its business model or product offerings.
Competition is the major threat to Comcast at present. The competitive environment is intense, with multiple competitors in each business line, many of whom are strong, well-capitalized competitors. The organization could see its market share shrink if their competitors are stronger.
The second key threat is represented in the technological dimension. The telecommunications business has been subject to rapid and profound shifts in recent years. Comcast must stay on top of those changes, or risk having its offerings become obsolete.
The third key threat is regulation. The telecommunications industry is heavily regulated. Changes in the regulatory/legal environment can reduce Comcast's competitiveness. Regulatory scrutiny has increased over the past three years (Comcast 2008 10-K), which has included the provision of advantages and relief to competitors at Comcast's expense. The company must pay increasing attention to regulatory issues, which distract the firm from its core tasks in technological development and marketing.
Strategies
Comcast appears to be following a differentiated strategy, oriented towards the provision of superior content. The company extracts premium prices, if its margins are any indication, and does so because of its integrated content offerings. There is little evidence to support the notion...
Furthermore, in the telecommunications industry the pace of technological change is driven by demand from the consumer side, necessitating constant R&D investment. These costs, and the fact that innovation is a demand driver, require Comcast to follow a differentiated strategy.
Comcast can address its threats and take advantage of its opportunities in a few ways. The first way is that the company needs to become involved in wireless. This can happen in a tentative way at first, for example becoming a wireless content provider rather than a network provider. The second way Comcast can exploit the opportunity to expand geographically by purchasing smaller providers in the remaining states and expanding their operations. The name brand of Comcast and the differentiated product and service offerings will help sell the company to the new audience. Lastly, Comcast needs to address a number of technology issues. It needs to move more of its programming online. It also needs to continue to spend on innovation, to maintain leadership in its core technological fields.
Works Cited:
Comcast website, various pages. (2009). Retrieved November 6, 2009 from http://www.comcast.com
Comcast financials from Reuters. (2009). Retrieved November 6, 2009 from http://www.reuters.com/finance/stocks/incomeStatement?symbol=CMCSK.O
Comcast 2008 Form 10-K. Retrieved November 6, 2009 from http://files.shareholder.com/downloads/CMCSA/766770494x0xS1193125-09-33975/1166691/filing.pdf
Reisner, R. (2009). Comcast's Twitter Man. Business Week. Retrieved November 6, 2009 from http://www.businessweek.com/managing/content/jan2009/ca20090113_373506.htm
Buckley, S. (2009). Comcast kept telco competition at bay in Q3. Fierce Telecom. Retrieved November 6, 2009 from http://www.fiercetelecom.com/story/comcast-kept-telco-competition-bay-q3/2009-11-04
McClatchy Tribune News Service. (2009). Comcast to put cable shows online for paying customers. Boulder Weekly. Retrieved November 6, 2009 from http://www.boulderweekly.com/article-130-comcast-to-put-cable-shows-online-for-paying-customers.html
