Problem Statement:
“In what ways can Roberts respond efficiently to the partnership of HBO with Apple?”
Analysis:
SCQ ANALYSIS:
SCQ Analysis is used because it efficiently guides Comcast out this trouble they have just encountered. SCQ helps organizations in identifying the main issues and would the organization be able to counter the challenges they have been presented. SCQ majorly highlights the core complexities of the situation and their degree of complication. Another aspect of the analysis is, it helps to analyze the whole situation and what changes have occurred? And what are the alterations made to the scenario of the industry.
How SCQ Helps:
SCQ helps in analyzing the situation efficiently and what are the steps that can be effective for the challenge. The framework helps in identifying the core issue being faced by the organization, which is causing difficulties for the growth of the company. SCQ helps organizations in analyzing the fact that, would the organization be able to rise up to the challenge and overcome it does not have the tendency to tackle the situation or they are simply not equipped enough to bear the consequences. The framework also helps in identifying the complications and complexities of main issue and what how the whole scenario has changed for the organization. E.g. the sales have dropped, the market share has reduced, growth rate per year has decreased, the revenue generation process has slowed down or any other productive change that has occurred would be highlighted by the framework.
Situation:
Comcast is the largest cable and Internet provide in the U.S. The cable and Internet provider company Comcast operates successfully with revenues over $64.7 billion. Comcast’s operations are supported by a workforce of 136,000 employees. The business of Comcast includes cable television, Internet services, and voice-over-internet-protocol and content production.
Brian Roberts is confused if his business model just got challenged by the partnership of HBO and Apple. He does not want to stay stagnant to this changing s in the market. Roberts want to respond efficiently to this partnership and stay competitive. Comcast has been able to survive through different situation and sustain its market share. Roberts thinks he can efficiently respond by joining hands with Apple.
Partnership with Apple would be the answer to the situation. Comcast has been selling HBO as an add-on channel. HBO has a premium network of 41 million U.S. subscribers who help HBO generate revenues worth$4.9 billion, out of which the profits account for $1.7 billion. HBO has also won many awards and is a reputable entity.
HBO has joint-ventured with apple for its standalone launch of HBO Now. HBO Now does not require any cable subscription and had the opportunity of persuading 10-15 million cable TV households. Other players in the market have also taken responsive steps to match up with this innovation. CBS introduced“CBS All-Access.” All these changes in the market have alarmed Roberts and he knows he has to take some measures to overcome these barriers and compete efficiently in the market.
Comcast Corporation Case Solution
Complications:
Comcast has been successful in providing cable and Internet services. The partnership of HBO and Apple has eliminated HBO’s dependency on cable subscription. HBO is an attraction to many subscribers and it airs many popular shows. Roberts will not be sure if Comcast would still be able to generate profits without HBO.
The chances of advertisements opting for other available options would rise. As HBO would be airing its programs through Apple screens. TV subscribers are mostly people above 30 and they prefer watching their favorite shows on TV screens, compare to this segment of the subscribers the younger lot of the audience prefers watching their shows on multiple screens as per their convenience. The chance of the younger subscribers diverting towards smaller screens are high due to the free availability of HBO Go on Apple screens.
Key Question:
The main question that rises for Roberts is, how Roberts can efficiently respond to the current situation to stay competitive in the market and what measures they would have to take into account for effectively managing the situation at hand. What steps must be followed by Comcast to overcome the current blow it has got from the partnership of HBO and Apple..................
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EVOLUTION
