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PEST And Porter Analysis Of Business

analytical Essay
1134 words
1134 words
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In my research, I was asked to find out why it is best for large organizations to use both PEST and Porter analysis in understanding their particular external environment. I discovered that these tools identify external environmental factors that are subject to change in the marketplace or particular business sector. As the landscape of business changes opportunities or threats emerge and the PEST and Porter analysis tools help exploit, the changes will allow companies to either recognize and adapt or lose to competitors. The outcome of PEST and Porter analysis is decisions based off these models thru recognizance of the overall picture surrounding the company and establishes a gamplan. I will start with PEST analysis, and my perceived use …show more content…

In this essay, the author

  • Explains why it is best for large organizations to use both pest and porter analysis in understanding their particular external environment.
  • Explains dish's use of pest analysis to continuously assess the market. the technology segment has ushered the potential of a new market with the introduction of the slingtv.
  • Analyzes porter's 5 forces analysis to show the competitiveness between suppliers' threats of new market entrants, the bargaining power of buyers, and the threat of substitute products emerging.
  • Explains that the macro-level external analysis will give the swot analysis information for understanding and decision-making for dish network leaders.

("Michael porter 's five forces competition theory model," 2016) This analysis shows the power of the customer willing to change from traditional means of TV to the use of the streaming medium as a primary means of entertainment. Also, the use of cellphones increasing its role in everyday life from a communication tool to a full-fledged media hub is making companies like Dish, DirecTV and Comcast realize they have a new market they need to gain a presence in exists and is not faddish or temporary. Over 600,000 subscribers have transitioned to Sling TV and are seeing accelerated subscriber growth as more people trade in their cable boxes for streaming media. According to the A Levy article over 800,000 people left their cable providers last quarter, and the paradigm shift is directly in line with the Porter’s 5 Forces analysis tool by showing the existence of threats of the new market entrants, (Hulu, Sony, etc.) the bargaining power of buyers willing to transition to cost-saving measures for their entertainment leaving Dish and DirecTV. The power of suppliers is there with new devices emerging like the Roku streaming box, Apple TV as well as PS3 's and Xbox 's being platforms to use as for viewing are active and present as …show more content…

Dish 's strength is its ability to deliver on its core competencies of providing high-quality programming at a low cost for its customers. So with this analysis, SlingTV is a product targeted to their customer that decided to leave the traditional satellite market to meet lost and future customer needs. Continuing with the SWOT a weakness or limitations Dish is facing is that they don 't provide internet connectivity and they are currently developing a strategy to enter that market as well as cell phone service to get into the realm of the DirecTV AT&T merger. From a customer perspective, they have to have an Internet provider still, and this presents another separate billing issue instead of the capability of bundling and cost

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