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Porter Five Forces Analysis of Time Warner Cable

<p align&equals;"justify">Time Warner Cable- TWC was one of the famous television cable company across America&period; It was acquired by the Charter Communications in 2016&period; The company is specialized in three main categories&semi; TV&comma; Film and network entertainment&period; The company was known to be second biggest cable company in terms of revenue&period; First one is Comcast&period; The company is headquartered in New York city&period; Charter communications continued its operations as the Time Warner in the former markets&period; But&comma; later re-branded the operation under Spectrum brand&period; It is the brand introduced by Charter communications in 2014&period; The company is now widely famous as Spectrum television cable &lpar;Shepherdson&comma; 2016&rpar;&period; <&sol;p>&NewLine;<p align&equals;"justify">The article will talk about the Porter five forces analysis of the Time Warner Cable&period; This five forces model helps the company in analyzing the external factors that are impacting positively and negatively&period; It deals with the opportunities and threats that must be identified by the company&period; There are five forces&semi; <&sol;p>&NewLine;<p align&equals;"justify">• Bargaining power of buyers<br &sol;>&NewLine;• Bargaining power of suppliers<br &sol;>&NewLine;• Threats of new entrants<br &sol;>&NewLine;• Threats of the substitute products<br &sol;>&NewLine;• Rivalry among existing players<&sol;p>&NewLine;<p align&equals;"justify">Here is the detailed Porter five forces analysis of Time Warner Cable&semi;&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Buyers<&sol;h2>&NewLine;<p align&equals;"justify">The bargaining power of buyers is an important force and is moderate for the Time Warner cable&period; Customers have to choose among different film and tv entertainment companies to spend&period; They have the broad range of choices&period; They even can subscribe to different broadcast networks&comma; subscription networks&comma; and films&period; This have great impact on the ratings which affect the advertising expenditures&period; This makes the customers preference as an important factor&period; Whereas major part of the entertainment and film industry are charged at the premium to customers&period; This clearly indicates that bargaining power of consumers play a role when high quality services are not provided by company&period; this indicates the drop in the consumers&comma; advertising&comma; and hence market share &lpar;Katkin&comma; 2013&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Suppliers<&sol;h2>&NewLine;<p align&equals;"justify">Supplier’s bargaining power in the industry is low and hence favourable for Time Warner Cable&period; The suppliers in this industry are mainly celebrities&comma; fine arts academies&comma; sports agents&comma; IP licensing&comma; creative artists&comma; and performers&period; These suppliers have control over prices to some extent&comma; but major control is with Time Warner and the other companies&period; However&comma; the company maintains good relationship with its suppliers&comma; as this is an integral part&period; They help the company in growing and providing the best entertainment to the customers &lpar;Green&comma; 2019&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats of New Entrants<&sol;h2>&NewLine;<p align&equals;"justify">Threats of the new entrants have to be seen high in case of Time Warner Cable&period; This is mainly because of the increasing demand of media streaming websites&period; However&comma; Time Warner has licensing agreement with the entertainment suppliers like Netflix&period; As the stakes of the Netflix are growing&period; Despite of the fact of growth in demand&comma; establishing the business and operations in the media industry is not easy&period; Huge capitalization is required as a start-up cost&period; Furthermore&comma; effective supply chain is needed to be established along with high distribution networks&period; There are numerous technicalities involve in this field&period; Huge companies are already capturing the market share&period; It is difficult for the new entrants to compete with them &lpar;Katkin&comma; 2013&rpar;&period;&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats from the Substitute Products<&sol;h2>&NewLine;<p align&equals;"justify">Threats from the substitute products are high for the Cable service providers&period; This is mainly due to the economies of scale achieved by the introduction of different mix of channels&period; The use of internet has been increased&period; All the films and television programs are easily accessible on the browsing sites&period; Internet is one of the main substitutes&period; Moreover&comma; change in the consumer preference like Theatre is increasing&period; People prefer to watch the new film or programs in the most qualitative and relaxing way in theatre &lpar;Green&comma; 2012&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Rivalry of Existing Players<&sol;h2>&NewLine;<p align&equals;"justify">Time Warner cable is known to be a film&comma; tv and network entertainment&period; It faces intense competition from rivals like News Corporations&comma; Viacom Inc&period;&comma; Walt Disney etc&period; These rivals can make up to 81&period;2&percnt; market share&comma; while Time Warner captures only 9&period;8&percnt;&period; This is mainly due to the competitors’ sizes and the audience they are attracting&period; Competitors mainly acquire small firms to increase the customer base and reduce the competition level&period; Moreover&comma; it is necessary to spend more on advertising to attract more customers&period; However&comma; Time Warner started to make agreements with Apple and Samsung for packaging the products with them&period; This will help the company to reach to more people and increase its market share &lpar;Katkin&comma; 2013&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2>References<&sol;h2>&NewLine;<p align&equals;"left">Green&comma; D&period; 2012&period; Time Warner Cable Industry&sol;Competitive Analysis&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;slideshare&period;net&sol;dgreen3552&sol;time-warner-cable-industrycompetitive-analysis">https&colon;&sol;&sol;www&period;slideshare&period;net&sol;dgreen3552&sol;time-warner-cable-industrycompetitive-analysis<&sol;a>&comma; &lbrack;Accessed on&colon; 24th December&comma; 2019&rsqb;&period;<br &sol;>&NewLine;Katkin&comma; M&period; 2013&period; External Analysis of Time Warner Inc&period; in the Entertainment and Film Industry&period; &lbrack;Online&rsqb;&comma; Available at&colon;&nbsp&semi; <a href&equals;"https&colon;&sol;&sol;michaelkatkin&period;files&period;wordpress&period;com&sol;2013&sol;08&sol;twx-external&period;pdf">https&colon;&sol;&sol;michaelkatkin&period;files&period;wordpress&period;com&sol;2013&sol;08&sol;twx-external&period;pdf<&sol;a> &lbrack;Accessed on&colon; 24th December&comma; 2019&rsqb;&period;<br &sol;>&NewLine;Shepherdson&comma; D&period; 2016&period; Charter Communications completes purchase of Time Warner Cable&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;reuters&period;com&sol;article&sol;us-twc-m-a&sol;charter-communications-completes-purchase-of-time-warner-cable-idUSKCN0Y92BR">https&colon;&sol;&sol;www&period;reuters&period;com&sol;article&sol;us-twc-m-a&sol;charter-communications-completes-purchase-of-time-warner-cable-idUSKCN0Y92BR<&sol;a>&comma; &lbrack;Accessed on&colon; 24th December&comma; 2019&rsqb;&period;<&sol;p>&NewLine;

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