Comcast Strengths And Weaknesses
Comcast NBC Universal SWOT Analysis and Discussion Comcast is the largest cable television company and largest internet service provider by a large margin. They pull in almost 75 billion dollars in revenue annually, serve over 22 million customers, yet have still managed to win the world’s worst company twice in a row. There is no denying Comcast’s ability to make money and pull in customers but with a closer look on their internal strengths and weaknesses along with the external movement of the market environment, we can see what Comcast can do to maintain their competitive edge, and how to combat their weaknesses and threats. We chose to focus on four points of interest for each of the four categories as this does not trivialize any
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Comcast’s biggest weakness is its reputation for not caring about customers, they are currently working on this with their net promoter score plan and their goal for 2016 is “to make customer satisfaction our top priority,” but with only 38% of Comcast’s customers willing to recommend them to a friend or family member, its going to be a hard won battle. Millennials are set to be 75% of the work force by 2025, and with millennials being the least likely generation to work for a company that they perceive in a negative light, their already struggling turnover rate is just going to be a bigger problem. Comcast’s reliance on older technology like broadband wires and other forms of delivery will hurt their ability to move overseas in the cable world, but that is not the only thing Comcast is anymore. Comcast’s integration of its businesses and services means that it can simply move the other aspects of its business like its streaming service and its parks globally without much of an issue. Another aspect of Comcast’s reliance on this old technology is its huge running cost. In 2014, capital expenditures in the communications segment grew by 13.9% (on 6.4% revenue growth) over the prior year’s level. This is a cause for concern, especially with the growing competition from AT&T Uverse and Google Fiber, both of which do not rely on these old systems. As Googles and AT&T grow and start to lower their costs with new technology, Comcast’s costs will only grow as the infrastructure continues to age and depreciate. Comcast is not viewed as a consumer focused company and for good reason, on top of their poor reviews and ratings from their customers, they have actively gone out of their way to harm net neutrality and competitors, something that many millennials especially frown upon. With the current ruling by the FCC and its recent ok from the court, Comcast is
Comcast’s biggest weakness is its reputation for not caring about customers, they are currently working on this with their net promoter score plan and their goal for 2016 is “to make customer satisfaction our top priority,” but with only 38% of Comcast’s customers willing to recommend them to a friend or family member, its going to be a hard won battle. Millennials are set to be 75% of the work force by 2025, and with millennials being the least likely generation to work for a company that they perceive in a negative light, their already struggling turnover rate is just going to be a bigger problem. Comcast’s reliance on older technology like broadband wires and other forms of delivery will hurt their ability to move overseas in the cable world, but that is not the only thing Comcast is anymore. Comcast’s integration of its businesses and services means that it can simply move the other aspects of its business like its streaming service and its parks globally without much of an issue. Another aspect of Comcast’s reliance on this old technology is its huge running cost. In 2014, capital expenditures in the communications segment grew by 13.9% (on 6.4% revenue growth) over the prior year’s level. This is a cause for concern, especially with the growing competition from AT&T Uverse and Google Fiber, both of which do not rely on these old systems. As Googles and AT&T grow and start to lower their costs with new technology, Comcast’s costs will only grow as the infrastructure continues to age and depreciate. Comcast is not viewed as a consumer focused company and for good reason, on top of their poor reviews and ratings from their customers, they have actively gone out of their way to harm net neutrality and competitors, something that many millennials especially frown upon. With the current ruling by the FCC and its recent ok from the court, Comcast is