Introduction The intent of this paper is to perform an analysis of the cable industry's external environment. The first sections of the document will discuss environmental scanning and define the telecommunication niche that is currently occupied by cable operators such as Comcast. The next section will identify the macroeconomic variables that currently impact cable operators and will compare two variables to two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities facing the industry. An external analysis of the industry will provide a clear picture of the environment as well as any opportunities and threats faced by Comcast. By understanding the environment, opportunities and threats a company has the ability to create strategies to support its business goals. The primary process by which Comcast will gain an understanding of its external environment is environmental scanning. Environmental scanning Environmental scanning "is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action." Choo (2001) As explained by Gazzale (2007) all businesses external environment are made up of three facets ": 1) the remote environment (macroeconomic factors including inflation, GDP, interest rates, etc.), 2) the industry environment (barriers to entry, the level of competition within the industry, etc.), and 3) the operating environment (the business's customers, suppliers, and workforce, etc.). Telecommunications Industry (Cable) Comcast Cable is part of the telecommunication industry which is defi... ... middle of paper ... ...ntal scanning as information seeking and organizational learning. Information Research, 7(1), retrieved January 18, 2007 from http://InformationR.net/ir/7-1/paper112.html Countrywatch (2007), retrieved January 19, 2007 from the University of Phoenix rEsource database Countrywatch, United States Gazzale, L (2007), retrieved January 22, 2007 from University of Phoenix, Main MBA501 week five environmental scanning thread McConnell, R., Brue, S. (2004). Economics: principles, problems and policies, 16e. The McGraw-Hill Companies NAICS definitions (2007), retrieved on January 18, 2007 from (http://www.census.gov/epcd/naics02/def/ND517510.HTM) US Census Bureau (2006), retrieved January 22, 2007 from http://www.census.gov/ University of Phoenix, (2007), retrieved January 19, 2007 from the University of Phoenix rEsource database MarketLine Business Information Center
A firm?s external environment is divided into three major areas : the general, industry and competitor environments. Below is an elaboration in further detail regarding the firm?s opportunities and threats in these three environments.
In the development of expanding, Southern Light a private cable company plans on extending its fiber-optic services from the Gulf Coast to Huntsville, Alabama. Southern Light is the Gulf Coast’s leading provider of fiber optic networks and high-volume transport solutions. Southern Light markets affordable, high-bandwidth services over their own fiber optic network. In this research, I will discuss the history and main operates of this private business, then I will identify and analyze the four factors of production of Southern Light fiber. Next, I will identify and analyze the business environments that are affecting this business. The expanding of Southern Light affects the community and businesses
6 framework I and many others regularly use in analysis of marketing situations. We supplemented
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Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
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These issues could have been resolved if a proper market analysis was done. The outcome of this research could have suggested that it best suits highly populated areas. The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions. Once the market research data is compiled, it is then evaluated upon which recommendations and conclusions are drawn.
Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization (Barnat, 2004). For a business to succeed, it is important to study the business environment of the firm that consists external and internal influences that affect the firm’s decisions and performance (Grant, 2010). Environmental scanning includes the assessment of Macro and Micro environmental analysis.
Environmental scanning (Grunig et al., 2002) enables detecting issues and external influences likely to be faced by the organisation.
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Analysis of the external environment is very important for the development strategy of the organization and a very complex process requiring a process tracking and assessment factors and also the establishment of links between those factors and the strengths and weaknesses as well as opportunities and threats. External environment has its complexity and uncertainty. It is obvious that without knowing the environment the organization can not exist. The organization studies the environment in order to secure a successful progress towards its goals.