5-1 Milestone Two
External Environment
Analysis
Nicole Miller
Southern New Hampshire University
MBA540
March 30th 2024
I’d like to thank you all for joining todays presentation, the External Environment
Analysis for Comcast Corp.
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Presentation Agenda
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01 Competitors: Comcasts top two competitors and how they compete
02 Competitive Advantages: Comcasts current competitive advantages and Porters Five Forces ranking
03 Areas of Opportunities: How Comcast will increase its revenue or market share within the next 5
years.
04 References: Presentation image and content references
This external environment analysis has been designed to identify Comcast’s
competitive environment and the opportunity the company can pursue to grow
its market share. We will discuss today’s current competitors, Comcast's
competitive advantages, and the ranking of Porter's Five Forces. Lastly, we will
identify the area of opportunity for the company to achieve over the next five
years.
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01
C
AT&T Spectrum (Charter
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5-1 M Two: Exte Environment Analys
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Section one: Our Current Competitors, AT&T and Spectrum/Charter
Communications.
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Comcast’s Competitors
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Telecommunications
Media
Entertainment
Broadband Services
Wireless Services
Mobile plans
Video and Streaming Services
Time Warner/Warner Media
HBO Max
Cable and Internet for home and
business
Bundled pricing
Infrastructure priorities and
initiatives
Wireless Services
Mobile Plans
Video and Streaming Services
Xumo
Spectrum and AT&T are both well-known telecommunications and
home/business internet/TV/Voice providers.
AT&T: Has a similar structure to Comcast with broadband services, voice and
video and their streaming services through Warner Media and HBO Max. In 2019,
AT&T was facing a decline in traditional pay-tv subscribers and made the move to
be “All-In” with HBO Max with a premium subscription price of $15/month and
access to many diverse programing lineups (Shaw, 2019). This is a direct
competition with Comcast/NBCUniversal's Peacock streaming service with
plans starting at just $5.99 per month. AT&T is the front-runner with wired phone
service, with 15.3 million subscribers in 2023 (Leichtman Research, 2024).
Spectrum: While Spectrum/Charter also offers home and business solutions
and bundled pricing, Charter has expressed infrastructure priorities and
initiatives aimed at maintaining speed claims nationwide, offering multi-gig
speeds and fiber on demand, and a priority of lowering future capital and
operating costs (Charter, 2024). Spectrum is also in partnership with Xumo, a
streaming box that offers live TV and On Demand content and the ability to
download streaming apps (Spectrum, n.d.).
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As of year end 2023, Comcast is still the top cable company with 32.3 million
subscribers. Charter is the second highest with 30.6 million subscribers
(Leichtman Research, 2024).
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02 C
A
U Skill Sets
P
L
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Comcast has several competitive advantages including unique skill sets,
product differentiation, location and value. We will discuss those and Porter's
Five Forces ranking to help understand Comcast's competitiveness and growth
potential within the industry.
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Unique Skill Sets
Content Ownership
NBCUniversal
Theme parks
Movies
Television
Leverage both streaming and
traditional cable TV
Customer Service Excellence
Customer loyalty and retention
focus
Expanding support channels
Service Reliability
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Comcast's unique skill sets include diverse content ownership, including
NBCUniversal, theme parks, movies, TV, streaming services, and traditional
cable TV. This allows Comcast to cater to several different demographics and
tailor services to meet various customer needs and preferences. Comcast has a
competitive edge by offering exclusive content to its subscribers.
Comcast also strives to be a leader in Customer Service Excellence, focusing on
customer loyalty and retention, expanding support channels, and strengthening
service reliability. The company’s commitment is to “Put the customer at the
center of everything we do (Comcast, 2020)”. To stay ahead of the competition
and focus on this commitment, Comcast offers a 30-Day money-back guarantee,
protection services, 24/7 support, self-service tools, and 2-hour appointment
windows (Xfinity, 2024).
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Products
Universal Studios
Theme Parks
Universal Pictures Film studio
A diverse portfolio allows for the diverse customer base
Peacock Streaming
Exclusive NBCUniversal content
Subscription-based with free content
Xfinity Internet, Voice and TV
High-speed internet on Comcast’s extensive network infrastructure
Bundled packages appeal to customers
Technology innovation through X1 platform
Cable TV, Streaming services, and smart home bundled together for a superior
entertainment service
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It’s no surprise that Comcast has a strong competitive advantage through its
product offerings that span from telecommunications, media, entertainment and
technology. As Comcast owns NBC Universal, the company has access to a
wide range of content including movies, tv shows, news, sports, and Theme
Parks. Many of this content is exclusive content designed specifically for the
company and its streaming service, Peacock. Peacock offers a tiered
subscription including both premium ad supported and premium plus that
includes no ads and local channels (Peacock, n.d.).
Universal Studios theme parks and film studios also add to the competitive
advantage through licensing franchises including Harry Potter, Jurassic Park and
Marvel. These entertainment sectors include Universal Studios Hollywood,
Universal Orlando Resort and Universal Studios Japan- which help promotes
Comcast being a global conglomerate.
Xfinity’s X1 platform was first of its kind which brought cable TV, streaming
services and smart home technology bundled together to provide a superior
entertainment service.
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Location
-Global Conglomerate
- North America, Europe, Asia, Australia, Africa,
Russia
- NBCUniversal, Xfinity, SKY
Focus on Key metropolitan areas
- US: Philadelphia, NYC, Chicago and San Francisco
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This Photo by Unknown Author is licensed under CC BY-SA
-Focus on key metropolitan areas
- USA: Philadelphia, New York City, Chicago, San
Francisco
Gives an advantage to dense populations and
enterprise services.
Network infrastructure to enhance reliability and
performance
Comcast has national coverage in the US, serving millions of residential and
business customers. The company's extensive footprint allows it to enhance
operational efficiency and professionalism.
Comcast is a global corporation with services in North America, Europe, Asia,
Australia, Africa, and Russia through Xfinity, NBCUniversal, SKY, and many other
subsidiary companies (SEC, n.d.).
The companies' focus on key metropolitan areas such as Philadelphia, NYC,
Chicago, and San Francisco enables them to take advantage of dense population
markets and enterprise service solutions. Comcast has a robust network
infrastructure that enhances reliability and performance in its service areas.
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Values
Customer Centric
Prioritized customer satisfaction
Strong brand loyalty and customer retention
Innovation
Enhancing products, services, and infrastructure with
cutting-edge R&D
Offer products to differentiate from competitors and capture
market share
Diversity and Inclusion
Diversity in hiring, training, and leadership
Creativity, innovation, and collaboration enhancing morale,
productivity, and retention of top talent
Corporate Responsibility
Committed to corporate responsibility and sustainability
reducing footprint and supporting community development
Mitigates risk, enhancing reputation
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Comcast takes pride in living by its values and strongly emphasizes being
customer-centric. This advantage allows the company to maintain strong brand
loyalty and customer retention efforts.
Comcast is also a leader in innovation-enhancing products, services, and
infrastructure within its research and development efforts. This allows the
company to offer products that separate them from their competitors to capture
market share and drive customer engagement. Comcast Labs, which is a
designated team that includes 40 PhD’s, 10 distinguished fellows, and hundreds
of active inventors, was launched to focus on developing, integrating, and
deploying products that change how people are entertained through integration,
personalization and expended content (Comcast Corporation, 2020).
Diversity and Inclusion are also important aspects of Comcasts values- the
company focuses on diversity in hiring, training and leadership. Their
competitive advantage supports creativity, innovation, and collaboration that
enhances morale, productivity and retention of top talent.
Comcasts Corporate responsibility has the company committed to both CR and
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sustainability reducing footprint and supporting community development. In
2021, Comcast made a commitment to invest $1B over 10 years in an effort to
reach 50m low-income Americans to provide them with the tools and recourses
needed to be digital (Comcast, 2021).
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Porters Five
Forces
New Entrants: Low
Supplier Power: Low
Buyer Power: Very High
Substitutes: Very High
Rivalry: High
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T Photo Unknown A is license under CC BY
Porter’s Five Forces is a model that businesses use to help assess their current
competitive environment to aid in the decision-making process and helps the
evaluation of environmental forces that make up the future of their industries
(Danao, 2024). There are five main categories that help identify the companies
competitiveness that include the threat of new entrants, bargaining power of
both suppliers and customers, and the threat of substitute products and with
each force, a rating is assigned, very high, high, low, or very low.
Throughout this analysis we have determined the following ratings for Comcast
with each of these forces.
New Entrants (L): due to high capital requirements, governmental hurdles,
agreements, and network infrastructure, it would be challenging for new entrants
to enter into the market, therefore, the threat of new entrants is low.
Supplier Power (L): With the company’s mergers, ownerships, and subsidiaries,
Comcast does not have a large need of dependency on external suppliers.
Buyer Power (VH): Buyers have high bargaining power mainly due to the amount
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of options and providers with competitive pricing, Comcast needs to stay ahead
of the competition through innovation advancements and customer focues
initiatives to retain loyalty.
Substitutes (VH): In conjunction with buyer power and the competition we face,
the company needs to stay ahead of the competition and offer never before seen
innovated technology.
Rivalry (H): Media industry is highly competitive specifically with streaming
services and trends of cord cutting.
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03 Area of
Opportunity
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Lastly, we will cover one area of opportunity that will help Comcast increase
market share and revenue over the next five years.
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new both
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Comcasts area of opportunity includes a nationwide expansion of network
infrastructure into underserviced and rural locations by 30% over the next 5
years. This image is a representation of the company’s current service areas for
its Broadband, voice, and cable services (Cooper, 2023). As you can see there is
a lot of untapped territory that can benefit from the company's products.
Investment in this expansion can attract new customers who have been
underserved by other providers, specifically satellite or dish providers and can
increase its overall revenue and market share.
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5-1 Milestone Two: External Environment Analysis
References
Charter. (2024). Results, SEC Filings & Tax Information. Retrieved from https://ir.charter.com/static-files/ba52d4ff-3a83-415b-8c1a-1f0a9a12df8b
Comcast Corporation. (2020). Comcast Labs: Building Tomorrow’s technologies. Retrieved from https://corporate.comcast.com/news-information/news-feed/reimagining-the-future-of-technology-in-the-home
Comcast. (2020). Customer experience. Retrieved from https://corporate.comcast.com/hub/customer-experience
Comcast. (2021). Comcast commits to investing $1b over next 10 years to reach 50m low-income Americans with tools and resources to succeed in Digital World. Retrieved from
https://corporate.comcast.com/press/releases/comcasts-internet-essentials-program-hits-ten-year-mark
Cooper, T. (2023). Xfinity Availability & coverage map. Retrieved from https://broadbandnow.com/XFINITY
Danao, M. (2024). Porter’s five forces: Definition & how to use the model. Retrieved from https://www.forbes.com/advisor/business/porters-five-forces/
Leichtman Research. (2024). Retrieved from https://www.leichtmanresearch.com/wp-content/uploads/2023/03/LRG-Research-Notes-1Q-2023.pdf
Peacock. (n.d.). Peacock: Stream TV and Movies Online, watch live news and sports. Retrieved from https://www.peacocktv.com/
SEC. (n.d.). Comcast Corporation List of Subsidiaries. Retrieved from https://www.sec.gov/Archives/edgar/data/1166691/000119312512073905/d262998dex21.htm
Shaw, L. (2019). AT&T goes “all-in” on HBO Max as its TV business crumbles. Retrieved from https://www.bloomberg.com/news/newsletters/2019-11-03/at-t-goes-all-in-on-hbo-max-as-its-tv-business-
crumbles
Spectrum. (n.d.). Spectrum Deals. Retrieved from https://official.spectrum.com/lfo-spectrumone-stream?ca.mp=Google&ca.cr=675330285973&ca.kw=spectrum+xumo&ca.mt=e&cb.device=c&ca.target=kwd-
2188594429403&lfokp=spectrum+xumo&fp=ch1&o=go&sitelink=false&v=SEMBR&cmp=SEMR_BR_G_XUMO_43700078101364320&tfn=R2510&gad_source=1&gclid=Cj0KCQjwk6SwBhDPA
RIsAJ59GwesB-hLKRQoZhHri8jC9eVCwdz0CGkebCEgb0MQbIbxdB0lqi-iP5waAkgAEALw_wcB&gclsrc=aw.ds
Xfinity. (2024). What is the Xfinity Customer Commitment? Retrieved from https://www.xfinity.com/support/articles/xfinity-customer-commitment
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