Comcast deals in communication and It industry. Here is the five forces analysis
ID: 373664 • Letter: C
Question
Comcast deals in communication and It industry. Here is the five forces analysis for Comcast cable business.
Threat of Entry- Someone very high capital and fixed cost to enter in this industry. Billion of dollar is needed to build a network and more millions of dollar will be needed to maintain that network. The company does have some small firms but I do not think that those companies have potential to overcome Comcast.
So I will give Grade A+ for this force.
2- Bargaining Power of the Suppliers- This is the only outlets which providers of contents like (HBO,Mtv etc).
So it holds a strong bargaining position against their suppliers. There are very large player in the industry.
Here Grade B will be given for this force.
Bargaining power of Buyer- Comcast increase prices often which means it has bargaining power against the customers. If a customer wants cable then Comcast is the only player is town. Grade A- for this force
Rivalry- There is a competition between the satellites but both the competitors have their separate users. There were chances that the prices will be reduced because of rivalry6 between both but it did not happen.
I will give Grade B for this force.
Availability of substitutes- The customers have option of Satellite Tv and the competition is tough between these two.
i will give b- for this force.
The tree factors would be availability, price and customer service. As there are 2 rivals in cable industry so Comcast should increase its availability, price should be competitive and customer service should be excellent.
Explanation / Answer
Conduct a Porter’s Five Forces analysis of the industry that Comcast is in (cable communications-TV, internet and phone) to determine the factors that are most critical to Comcast’s success? Based on the analysis, what are the three most critical factors that Comcast must deal with in its competitive environment? Explain why.
Please provide sources with answer.