Time Warner Cable Strategy
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Transcript of Time Warner Cable Strategy
Time Warner Cable Inc.
Presented by: David Green, Tiffany Gray, Frankie Miamen, Nick Foster, and Tobi Coker
Vision Statement
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.
SWOT Strengths:
Brand NameStrong Market PositionProgramming Variety
Consistent Revenue GrowthLowest Programming Cost
Social ResponsibilityDiversity
Weakness:Failure to Innovate
ExpensiveSignificant Debt
Legal InvestigationsHeavy Dependence of SuppliersRequires Personal Information
Customer Service
Opportunities:Online Video ContentInternational Market
Fiber OpticsGrowth of HDTV/3D
Cloud ComputingRapid Technological Changes
Mergers/Acquisitions and Joint Ventures
Threats:Stand Alone ServicesHeavy Competition
Government RegulationsLicensing Rights
Economic RecessionSlow Industry Growth Rate
Piracy/Alternative Sources of VideoCord Cutting
Generic Strategy
Time Warner Cable is currently operating under a Broad Differentiation strategy.
Shift from Broad Differentiation strategy to Best Cost Strategy.
Time Warner vs. Competitior’s
Company Bundle Packages Basic Packages (just TV)
Double Play Internet Alone Voice Services Alone
Time Warner Cable $124.85 / month (TV, Internet, Phone)
$49.95/month $84.90/month (TV & Internet)
$34.95/month (High Speed)
$39.95/month
Comcast Corp. $99 / month (TV, Internet, Phone)
$29.99 (over 80 channels, including on Demand movies & TV shows)
$69.99/month (TV & Internet or Voice)
$29.99/month (High Speed)
$29.99/month
DirecTV $75 / month (TV, Internet, Phone)
$29.99 (Over 150 digital channels)
*Only available after ordering service through a “bundle specialist”
*Only available after ordering service through a “bundle specialist”
*Only available after ordering service through a “bundle specialist”
Verizon Fios $84.99 / month (TV, Internet, Phone) N/A
$64.99 (TV & Internet)$59.99 (TV & Phone)
$49.99 (with home phone service) N/A
Dish Network*Pricing only available after ordering service.
$29.99 (Top 120 channels)
Not sure if this is available.
Not sure if this is available.
Not sure if this is available.
AT&T U-Verse $89.00/ month (TV, Internet, Phone)
$34/month $64.99/month (TV & Internet)59.95/month(Internet & Phone)
$39.95 (High Speed) Available through AT&T Wireless & Home.
Financial & Strategic Objectives
Financial Objectives
Increase overall revenue by 20-25% in the next 3-5yrs
Increase profit margins by 1-3% in the next 5 years.
Strategic Objectives
Increase overall market share by 10-15% in the next 5 years.
Increase overall customer satisfaction
Supplemental Strategies
Offensive Gain Market Share Need to innovate
Defensive Need to Strengthen market position Improve upon our weaknesses
Sports Package App 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.
Sports Package App
Sports Package App 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
Customer Loyalty ProgramStrategic Rationale
Increase Customer RetentionAttract More customersIncrease Brand LoyaltyRaise switching Costs
Customer Loyalty ProgramIMPLEMENTATION STRATEGYPHASE 1
Consumer ResearchLook at current subscribers to see who bought during a promotion period
PHASE 2Interpret and Analyze the dataWhich promotional periods brought in the most customersBegin to structure a loyalty program
PHASE 3Implement the loyalty program to subscribersBegin to market the program to consumers
PHASE 4Keep improving because it will constantly change Continuous consumer research
Down To EarthStrategic Rationale
Capitalize on opportunities presented in the SWOT
Streamlined Content Cloud Computing
Down To EarthIMPLEMENTATION STRATEGYPHASE 1
Enter into agreements with Amazon and Time Warner IncPHASE 2
R&D on technological capabilities needed to implement the servicePHASE 3
Test it in the marketImprove and adjust any areas of error
PHASE 4Implement it to the marketMonitor it to the marketMonitor results
Increase Customer Service Performance
Strategic Rationale Enhance our brand image Increase Customer Retention
Increase Customer Service PerformanceImplementation 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
Change Pricing Model
Strategic Rationale Too expensive Need to be more competitively priced Increase subscriber base and retention rate
Change Pricing Model
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
PricesCompany Bundle Packages Basic Packages (just
TV)Double Play Internet Alone Voice Services
Alone
Time Warner Cable $124.85 / month (TV, Internet, Phone)
$49.95/month $84.90/month (TV & Internet)
$34.95/month (High Speed)
$39.95/month
Comcast Corp. $99 / month (TV, Internet, Phone)
$29.99 (over 80 channels, including on Demand movies & TV shows)
$69.99/month (TV & Internet or Voice)
$29.99/month (High Speed)
$29.99/month
DirecTV $75 / month (TV, Internet, Phone)
$29.99 (Over 150 digital channels)
*Only available after ordering service through a “bundle specialist”
*Only available after ordering service through a “bundle specialist”
*Only available after ordering service through a “bundle specialist”
Verizon Fios $84.99 / month (TV, Internet, Phone)
N/A
$64.99 (TV & Internet)
$59.99 (TV & Phone)
$49.99 (with home phone service)
N/A
Dish Network
*Pricing only available after ordering service.
$29.99 (Top 120 channels)
Not sure if this is available.
Not sure if this is available.
Not sure if this is available.
AT&T U-Verse $89.00/ month (TV, Internet, Phone)
$34/month $64.99/month (TV & Internet)
59.95/month(Internet & Phone)
$39.95 (High Speed) Available through AT&T Wireless & Home.
Impact on Competitive Position
Key Success Factor/Strength Measure
Time Warner Cable Inc.
Comcast Corp. DirecTV Dish Network
Importance Weight
Strength Rating
Score Strength Rating
Score Strength Rating
Score Strength Rating
Score
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 Capabilities
0.23 6.0 8.0 1.8 9.0 2.1 7.0 1.6 7.0 1.6
Programming 0.15 9.0 1.4 10.0 1.5 8.0 1.2 5.0 0.8
Sum of Importance Weights
1.00
Weighted Overall Strength Rating
43.00 46.00
7.03 7.62
52.00 8.88 49.00 8.02 35.00 5.66
Impact on Competitive Position