Comcast is a telecommunication conglomerate company based in Pennsylvania, USA. Comcast Corporation develops exceptional technology and entertainment to create a connection between people to experience joyful moments. The company provides TV, internet, mobile, voice and home management services to its customers. The company provides exceptional speed by creating the largest and most effective Gig-speed in the USA. Xfinity, NBC, and Sky are some of its major and significant brands (Comcast, 2019). The industry of Comcast is rapidly changing as it is linked with technology and entertainment. Porter’s five forces model for Comcast Corporation is provided to cope with the rapidly changing technological and entertainment business environment.
Competitive Rivalry
The acceptance of online TV, internet, broadcasting, and mobile services has been exceptional in the last two decades due to massive innovation and advancements in technology. In the USA, the competition in the broadcasting and telecommunication industry is mounting day by day due to unique and innovative offerings. Comcast, Walt Disney, Liberty Sirius, Liberty Media, and CBS Corporation are the most significant shareholders of the industry with a revenue collection of USD 183, 171, 22, 22, and 17 million in 2018 respectively (MarketScreener, 2019). The presence of such giants with an exceptional amount of investment in technological advancements and innovations is making the industry more complex and difficult to operate. The continuous offerings of competitive rivals are increasing the competitive rivalry and overall, the competition in the industry is becoming intense with every technological advancement.
Threat of New Entrants
The presence of large and small companies at the same time in the industry is the evidence of easy entry and maintenance of small or large business. The industry does not have severe barriers for a new entrant that makes it more attractive for investors and customers. One of the significant attractions for the new entrants is the low brand loyalty and easy switch of customers. Most of the customers are spurious loyal and the loyalty changes quickly with minor benefits or innovative offerings. Bringing an innovative offering in such a dynamic industry even by a new entrant is not something that never happens (Choi, 2018). Due to low barriers and overall attraction for new entrants, the threat of new entrants is high for the already existing players like Comcast Corporation in industry.
Threat of Substitutes
The threat of substitutes for broadcasting and telecommunication industry is high as the means of telecommunicating and broadcasting are changing with an exceptional and magical pace. The evolution of technology and its impact on entertainment, broadcasting, and telecommunication industry is most significant. The means of broadcasting, telecommunication, and entertainment have completely changed over the last few decades. The wireless technology would not be a concept someone can think of 30 years ago but now the wireless technology has completely replaced the landline technologies. The offline TV is replaced by a massive size with online TV and same goes for broadcasting techniques (Choi, 2018). The substitutes in this industry have evolved continuously over the years and they are evolving with a high pace keeping the threat of substitute high.
Bargaining Power of Buyers
There are several options and offerings at different and most affordable prices available for customers other than these mentioned five big industry players. This penetration of the industry with multiple options for buyers increases the bargaining power to take affordable prices and better services. It is becoming difficult to retain customers and the loyalty switches quickly with minor benefits provided by the competitive company (Evans, 2015). The customer bargains and set his/her own terms and switch in case the terms are not accepted. This nature of industry helped the buyers to strengthen their bargaining power.
Bargaining Power of Suppliers
When the number of suppliers is high, the bargaining power of supplier decreases if there is no significant dominance or monopoly by a single supplier. The major suppliers of broadcasting, telecommunication, and mobile services industry include equipment providers, anchors, directors, producers, technical staff, and several other related staff. The availability of all these mentioned supplies is in abundance in the USA and the company has multiple options to choose in terms of picking a supplier (Evans, 2015). This lack of domination or monopoly by a single supplier for broadcasting and telecommunication industry decreased the bargaining power of supplier and making the companies stronger to deal with suppliers.
References
Choi, H. (2018). Broadcasting and telecommunications industries in the convergence age: Toward a sustainable public-centric public interest. Sustainability, 10(2), 544.
Comcast. (2019). Company. Available at: https://corporate.comcast.com/company
Evans, N. (2015). Managing Innovation & Disruptive Technology. CIO. Available at: https://www.cio.com/article/2976572/digital-disruption-from-the-perspective-of-porters-five-forces-framework.html
MarketScreener. (2019). Comcast Corporation. Available at: https://www.marketscreener.com/COMCAST-CORPORATION-4864/charts-sector/