Dish Network External Analysis Essay Example

high, satellite dish prices will need to increase, potentially impacting customer decisions between satellite and cable. Unemployment rates can also pose a threat to the company, as evidence suggests lower subscription sales compared to the previous year, with unemployment rates being the primary cause (Svensson).

There has been a rise in the number of people living with their parents due to high unemployment, resulting in a decrease in demand for separate cable bills (Svensson). The opinions of analysts on the current stage of the economic cycle can have positive or negative consequences for the industry. Depending on the analysis encountered, there may be differing viewpoints on the current state of the economy. Analysts who believe that the recession is over and we are headed towards recovery may have a favorable impact. This could lead individuals to perceive an improvement in the economy and resume indulging in luxuries.

For individuals who continue to fear the impact of the recession, they may be less inclined to purchase subscriptions. In terms of analysis, the third environmental aspect explored was social. Demographics play a role in various ways. One aspect is the generational effect which can be either positive or negative. On the positive side, Dish Network and other satellite providers are appealing to a younger generation through the use of new technology, which captures their interest in these products. Conversely, the older generation tends to prefer a simpler method of watching television, such as cable within the industry.

In addition to the industry, the population’s leisure interest may also impact the industry. Certain customers prefer channels that cater to their specific preferences and do not require extra features. As a

result, they may seek alternative options that offer better deals on the desired channels. The technological environment is the last factor to consider in the PEST analysis for companies in the TV service providers industry. It is crucial for companies to continually generate novel and innovative ideas since customers anticipate fresh and captivating television viewing experiences.

The industry is encountering several new technologies such as HD channels, DVR, 3D televisions, internet and mobile device viewing, and On Demand features. To foster industry growth, these technologies need to meet the demand. Another study examined the Five Competitive Forces, revealing the industry's rivals, threats from new entrants and substitutes, and the power of customers and suppliers. The major competitors in the TV service providers industry include Dish Network, Direct TV, Comcast Cable, Time Warner Cable, and Atlantic Broadband.

The competition between these competitors may result in decreased profits as they engage in price competition and adopt new technology to maintain their competitiveness in the industry. Additionally, the TV service providers industry faces the potential threat of new entrants and alternative substitutes. Potential new entrants such as Verizon, AT&T, Sprint, Apple, and Amazon could pose a significant threat to the industry. These companies possess similar technologies and have the advantage of their large size and resources to enter the market. Moreover, they are likely to have easy access to the necessary capital requirement.

Possible substitutes for the TV service provider industry include Netflix, the Internet, and Smartphones. Although these alternatives are not part of the TV service provider industry, they offer similar services like TV shows and movies. This poses a moderate threat to the industry as they provide attractive

pricing options. However, customers may find it difficult to switch to another substitute if they are bound by a contract with a TV service provider. The study also analyzed the influence of customer power and supplier power on the TV service provider industry.

The industry's customers vary from individual households to businesses, bars, and restaurants. Individual households generally have little influence in the industry, often paying a standard package price. However, if a business has a strong reputation, they may possess some bargaining power. Some businesses even have televisions in their break rooms and lobbies. Sports bars and restaurants can also wield some bargaining power by providing the provider with exposure to their customers. As a result, they may be able to negotiate for better quality if they purchase higher sports packages from the providers.

The industry is heavily dependent on suppliers for various equipment such as antennas, cables, smart cards, remotes, receiver boxes, and channel networks. The providers face a limited number of options when it comes to sourcing this equipment. Moreover, switching suppliers would require the providers to replace each individual customer's equipment and train their installation workers accordingly. Additionally, channel networks like FOX, CBS, ESPN, and CNN hold significant influence. The TV service providers strive to include these channels in the packages they offer to customers.

The TV service provider industry undergoes constant changes due to advancements in technology, environmental factors, and competition. It is crucial for the industry to adapt and innovate in order to avoid threats from potential new entrants and substitutes. The Federal Communications Commission provides information on the general cable television industry and regulation. An article by Dan Frommer discusses

how Dish Network subscribers were affected by a weak economy and competition. Margaret Newkirk reports on a proposal to increase taxes on satellite, cable, and cell phone services. The Shavitz Law Group provides information on a Dish Network lawsuit. Peter Svensson's article highlights the record number of subscribers lost by cable and satellite companies.