Comcast Business Report Essay Example
Comcast Business Report Essay Example

Comcast Business Report Essay Example

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  • Published: October 13, 2017
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The aim of this study is to analyze and understand Comcast's strategies, management team, external environment, and industry analysis that have contributed to its success as a profitable corporation. Comcast, a well-known company in Philadelphia, offers television, phone, and internet services. The company has gained a positive reputation through acquiring various television networks like NBC Universal and Time Warner Cable using its acquisition entry strategy.

We chose Comcast for our research subject because it is a popular provider of television, internet, and phone services in the Hampton Roads area. Verizon is its main competitor in these sectors. Additionally, as a Fortune 50 leader, Comcast excels in diverse innovative businesses and provides career opportunities across different locations and fields.

What does Comcast do?
As the largest cable and home internet service provider in the United States, Comcast ranks third for


telephone service. Its services are available to residents and commercial offices in 40 states along with the District of Columbia. Furthermore,
Comcast produces film and television content while operating cable channels like E! Entertainment Television and the Golf Channel. Established in 1963 under the name American Cable Systems,
Comcast is currently headquartered in Philadelphia, PA.Comcast, originally a cable operator in Tupelo, Mississippi, has evolved into a prominent force in media, entertainment, and technology. The company's objective is to establish a close-knit family-like organization while also striving for market dominance by offering high-volume and low-priced services. At the core of Comcast's mission is the combination of top-quality media and technology to deliver unparalleled entertainment and online experiences. In its Corporate Social Responsibility Report, Comcast outlines various values it aims to uphold that encompass connecting media and technology

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creating meaningful content, reducing environmental impact, operating responsibly, building trust through stewardship efforts, fostering employee development and empowerment through diversity and inclusion initiatives.

Although the exact number of retail units across the United States remains unknown presently, information exists regarding the number of customers utilizing Comcast's television internet and phone services for residential and commercial purposes. As of December 31st 2013., Comcast serves a total of 53.8 million customers nationwide; this includes 21.7 million television subscribers along with 20.7 million high-speed internet users and 10.7 million telephone service consumers primarily located in Maryland, New York Massachusetts ,and Miami.Comcast relies on approximately 130000 employees who play an integral role in the company's success.Comcast, the largest mass media and communications company globally, values creativity and passion in their employees. They take pride in providing excellent service and innovative ideas for insightful and entertaining content. The company strives to create an appealing work environment and recognizes employee dedication with competitive wages and benefits. According to Yahoo!Finance, Comcast earned gross revenue of $17.4 million as of March 31, 2014, increasing by $1.5 million since December 31, 2013. However, net income declined from $1.9 billion in December to $1.8 billion on March 31, 2014 (see Fig NI). Despite this fluctuation, Comcast has a history of varied net income ranging from $866 million in March 2010 to $2.113 billion in September 2012.

Comcast places high value on diversity for equal employment opportunities within today's workforce as approximately40% of the American workforce is made up of women (see Fig DI). Diversity is seen as an essential part of their team approach and they are committed to promoting it throughout the company structure. In fact,

Comcast had around eight women holding top management positions in 2014 known as the "women of Comcast and NBCUniversal". Currently there are also 539,000 shareholders with either direct or indirect stakes in the company - direct shareholders possess physical stock certificates while indirect shareholders hold stock through brokersD'Arcy F. Rudnay holds the position of Chief Communications Officer for Comcast Corporation and serves as a communications advocate for top executives like the Chairman and CEO. Her role involves overseeing brand reputation and strategic communication throughout the organization. Prior to joining Comcast, she held various roles at Lincoln Financial Group, including Vice President of Corporate Communications and Media Relations, as well as Vice President of Lincoln Financial Group Foundation. Rudnay has been recognized with multiple awards in the field of communication, earning her a place in the Public Relations Hall of Fame.

Amy Banse is currently the Managing Director and Head of Funds at Comcast Ventures, where she plays a vital part in strategizing for funds across all sectors within Comcast. According to a 2014 corporate website, Banse boasts over two decades of investment experience at Comcast. She initially joined the company in 1991 as an attorney responsible for establishing and developing companies within the organization. Banse played a crucial role in shaping the Television Everywhere strategy by founding Comcast Interactive Media and overseeing several acquisitions such as,, and Fancast which helped implement this strategy successfully.

The contributions made by Rudnay and Banse have been instrumental in driving Comcast's achievements.Any organization similar to Comcast must have a legal advocate responsible for handling legal matters and business ventures which are essential for growth and expansion. Banse, an experienced

team leader, is responsible for launching Comcast Interactive Media and leading the development of the Television Everywhere strategy. Her expertise keeps the company at the forefront in the digital age. Rudnay contributes her extensive experience in communication to the company and has been recognized with an election to the Public Relations Hall of Fame for her diligent efforts. Together, Rudnay and Banse bring necessary tools and experience to keep Comcast ahead in the digital world.

The top management team at Comcast has positive aspects such as good representation of women in executive positions ranging from president to vice president, a significant achievement for women as a minority group. However, there is currently no representation of minority women like African Americans and Hispanics in these executive positions. Despite the potential for diversity among minority women in the company, it is worth noting that considering its size and scope, the number of executive women at Comcast may be considered small.

Brian L. Roberts holds both Chairman and Chief Executive Officer positions according to information on the Comcast Executive Biographies website (2014).Since joining Comcast in 1990, Roberts has been instrumental in increasing annual revenue to over $64 billion and transforming the company into a global Fortune 50 corporation. His achievements have garnered recognition from Fortune as a "Business Person of the Year" for three consecutive terms. The Board of Directors at Comcast consists of 61 diverse professionals, including both men and women. This group includes 16 professional women, some representing minority adult females within the organization. With its size and diversity, Comcast Corporation can be considered a large and diverse organization overall. In my opinion, this board is well-suited to

oversee all aspects of the company. It is important for businesses of all sizes to disclose their profit-making strategies and demonstrate their impact on the economy, society, and environment. Comcast is dedicated to corporate social responsibility through initiatives aimed at empowering local partners and improving neighborhoods by providing necessary resources. The company also supports local nonprofit organizations through funding and hosts annual events like Comcast Career Day focused on community service.In 2012, approximately 75 events were organized with the participation of around 000 employees from both Comcast and NBCUniversal. These events included community service projects across 665 different locations, where volunteers contributed over 454,000 labor hours. Additionally, through its foundation, Comcast granted over $1.5 million in fitting grants.

One example of Comcast's commitment to corporate social responsibility is their partnership with the Big Brothers Big Sisters of America through a program called Beyond School Walls. This program connects employees with students in need and has been successful in improving grades and increasing work satisfaction for the students. As a result of this success, the program was expanded and Comcast was recognized with the President's Award for their support.

Comcast also focuses on enhancing their products and improving service and support for consumers as part of their business-level strategy. They aim to provide customers with a wide range of content options across all platforms without requiring additional equipment purchases. In 2010, they launched the brand "Xfinity" to enhance customer experience and reputation. Xfinity offers over 100 HD channels, 50-70 foreign language channels, fast internet speeds, as well as various TV shows and movies online.
(Source: Comcast website, 2014)Comcast has introduced "Xfinity Signature Support," a new service that provides technical

support for personal computers, home networking equipment, and other devices connected to Comcast services. Customers have the option of monthly subscriptions or stand-alone troubleshooting and online assistance from IT professionals. They can also choose an equipment protection program that extends warranties for computers and televisions.

Despite merging with Time Warner Cable, Comcast remains committed to its strategy of focused differentiation by continuously seeking innovations in telecasting, high-speed internet, and phone services. Competitors in the cable industry include Netflix, Direct TV, Dish, Warner Cable, Hulu, AT&T, Verizon Fios, Charter, and Cox. Netflix is currently leading with 36.2 million subscribers.

The cable industry caters to a diverse range of customers including those aged 40-60 who make up a significant portion of their customer base. To cater to different demographics with various nationalities and ethnicities within the cable industry landscape, specific channels are included to appeal to audiences from different cultural backgrounds. For example, Comcast offers American Spanish language television and Telemundo to target a wider market.

Telecommunications and broadband internet services are growing sectors within the cable industry.Telecommunications serves 26 million clients (NCTA. 1), while five of the top 10 residential phone companies provide broadband internet services serving 50 million clients (NCTA. 1). From a socio-cultural perspective, society prioritizes creating an inclusive work environment that treats both genders equally. The cable industry is responding by increasing the employment of more women since pre-recession levels. Comcast is addressing these expectations by diversifying its workforce and hiring more women for their cable industry team. Accommodating older workers is also important in the socio-cultural environment due to external pressure on this front. According to government data, the workforce participation rate of workers aged

55 and above has increased from 29 percent in 1993 to 40 percent as of February 2012 (Greenberg 1). This trend is expected to continue, with a projected increase to 43.5 percent by 2018 (Greenberg, p.1). Many older workers are choosing to remain or return to the workforce for temporary jobs in order to supplement their retirement income. Temporary work provides significant employment opportunities for older individuals and women, and the cable industry offers part-time positions with competitive pay and retirement plans tailored for these workers.Comcast supports older workers through various means including retirement plans, wages, and bonuses.In terms of technology's global impact, the cable industry serves over 50 million customers with broadband servicesComcast meets the growing demand for high-speed broadband ranging from 10 to 20 Mbps by providing innovative services like online streaming of cable channels and faster Internet. Accessible TV subscriptions can be an alternative to movie theaters or purchasing movies, potentially increasing viewership and contributing towards global poverty alleviation. However, lack of income can hinder access to TV subscriptions for those in poverty. The economics of cable networks are influenced by economic and political factors. In the United States, the television ecosystem has created opportunities for international cable networks' growth. The US cable and satellite industry serves about 100 million households and businesses who pay an average of $68 per month for video programming. These providers offer approximately 19 channels and pay around $20 per subscriber per month in carriage fees to cable networks. As a result, the networks generate an annual total revenue of about $24 billion. Advertising sales reached $25 billion in 2011, with another billion generated from content sales

to distribution outlets. Overall, the cable network industry generates significant annual revenue of $50 billion with cash flow margins exceeding 40%, mainly due to contributions from international networks such as ESPN, CNN, MTV, and Discovery.The growth of the industry is largely driven by individuals' willingness to pay a monthly subscription fee. Additionally, cable networks are experiencing strong advertising sales on a cost per 1000 basis, resulting in an overall increase in advertising revenue by 11%. It is worth noting that overseas cable networks are becoming more profitable, particularly due to events such as the London Olympics and U.S. elections. In fact, international broadcast and non-U.S. business have surpassed domestic business for the first time in years.

However, there are certain issues that need to be considered. Cable and satellite fees are projected to rise at a lower rate of 7% per subscriber this year, indicating a decline in pay television subscriber growth in the U.S. Furthermore, younger generations prefer TV subscriptions at reduced rates compared to older generations, leading to an overall decrease in TV subscriptions.

As a result, investors should anticipate cable networks becoming established assets in the future. Comcast faces competition from various markets when analyzing the industry; however, with 21.690.000 subscribers in Q4 2013, Comcast significantly surpasses its main competitors including Times Warner Cable, AT U-verse, and Verizon FIOS. Despite this level of competition being considered low threat.AT and Comcast are both major players in the cable internet services industry, each serving 17 million customers. While AT offers slightly better services at similar prices, customers still prefer Comcast because it is known as the largest internet cable provider. Additionally, since acquiring NBCUniversal, Comcast now

faces competition in the movie studios industry. Among its new business partner Warner Bros Entertainment, NBCUniversal ranks third among movie studios, behind Times Warner Cable and The Walt Disney Studios. In 2013, NBCUniversal held market shares of 17.1%, 15.9%, and 13.9% in the US and Canadian markets respectively - a position it has maintained since 2005.

Comcast is focusing on developing new online streaming services for its cable channels and networking systems to compete with rivals like Netflix and Hulu. Despite challenges from substitutes, Comcast's market share remains secure due to the difficulties associated with becoming a global cable provider and the presence of current providers. However, to address these challenges, Comcast plans to launch its own streaming service later this year.

The success of Comcast relies heavily on the bargaining power of suppliers who provide technology and software; therefore, suppliers can charge high prices. On the other hand, the limited number of communication and cable companies in the US limits buyers' bargaining power.Despite the need for Comcast to compete with other industry players, it is important for them to ensure reasonable services and prices. If customers are unsatisfied, they can easily switch to another cable provider and negotiate their desired terms by expressing opinions about Comcast's services. To remain competitive against rivals like Netflix, Hulu Television, Livestream, and startups in delivering movies and TV shows efficiently. It is vital for Comcast to enhance its customer service reputation for long-term sustainability. According to Berr (2014), Comcast has the lowest customer-service evaluation among all Internet service providers which influences its future in telecasting, internet, and phone services. Although Comcast aims to improve customer service, they have not yet

achieved this objective. However, improving customer service would greatly benefit the company presently and in the future (Berr 2014).Works Cited
“Amy Banse.” Amy Banse.N.p..n.d.Web.20 June 2014..
“Brian L. Roberts.” Brian L. Roberts.N.p..n.d.Web.19 June 2014..Comcast.“Comcast Corporation Form 10-K.” Comcast.Comcast.n.d.Web.1 Apr.2014.“CMCSA Income Statement | Comcast Corporation Stock – Yahoo!Finance.” CMCSA Income Statement | Comcast Corporation Stock – Yahoo!Finance.Yahoo!Finance.31 Mar.2014.Web.18 June 2014..“Comcast Corp..” .Edgar Online.31 Dec.2013.Web.Jun-14.April <a href="">source</a>.“Corporate Social Responsibility Report – 2012.” 2012 Corporate Social Responsibility Report.Comcast — NBC Universal.Jan-12.Web.Jun-14.Corporate, <a href="">D’Arcy F.</a>"Develop and Engage Employees" is an article from the Comcast — NBC Universal website, accessed on Jan-12 and last updated on Jun-14.Kate Cox wrote an article titled "Why Comcast Wants To Buy Time Warner Cable", found on Consumerist's website, with a publication date not specified.Another website called "Developing Tomorrow’s Professionals and Leaders" provides information about developing future professionals and leaders but does not include a specific publication date.Jasmine Fowlkes authored an opinion piece titled "Why Social Media Is Destroying Our Social Skills", published in USA TODAY College on October 11, 2012, accessible as of April 11, 2014.
R. Kay Green's article "The Social Media Consequence: Are You Truly Who You Portray Online?" was published on The Huffington Post website on August 7, 2013 and is available as of April 10, 2014.

Paul Greenberg authored an article called "Temping: An Option for Older Workers", which can be accessed online as of June 23, 2014.

Spencer Grimes also wrote an article named "Sunset of the Golden Age As Cable Networks Mature", which has been available online since June 23, 2014.

The Wikipedia page "Major Movie Studios" provides information about major movie studios; it was last updated on October 4, 2014 and can

be accessed through Wikimedia Foundation's website as of April14,2014.

Information about National Cable & Telecommunications Associations can be found online at on June 23, 2014.

Dorothy Pomerantz's article titled "Comcast Looks Set To Buy Time Warner Cable" was published in Forbes magazine on February13th, 2014 and is available to read online from April14th ,20xx .

Brian Stelter wrote an article titled "Comcast Agrees to Buy Time Warner Cable for $45 Billion," which was published by CNNMoney - a cable news network - on February13th , xx20xx .

The article "20 Top Internet Service Providers" by SIG UELAND can be found on Practical Ecommerce. It was published on December11 ,20xx and accessed on April14 ,2xxx .

Margie Warrell's article titled "Seduced by Social Media: Is Facebook Making You Lonely?" was published on The Huffington Post website.The Comcast website has a section dedicated to "XFINITY Television," which was accessed on November 8, 2013 and April 11, 2014. Additionally, it was accessed on April 7th, 20xx.

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