"components of a Case Analysis Report"

CASE ANALYSIS TOOLS

"COMPONENTS OF A CASE ANALYSIS REPORT"

? CURRENT SITUATION

The case focuses on the acquisition and consolidation of DirecTV by media mogul Rupert Murdoch's News Corp. After the acquisition, Murdoch's content-and-distribution empire spanned four continents. Murdoch, News Corp.'s chairman, had ambitions to build one of the most powerful media companies in the world. He aspired to have a balance between subscription and advertising revenue, the best mix of content and distribution and the widest geographic spread in the world.

? EXTERNAL ENVIRONMENT

SOCIETAL OVERALL

PEST ANALYSIS

In the technology aspect, USA is a country that has a very development technology. DirecTV offers a diversity of programming innovation.

In the socio-cultural aspect, due to rapid changes in technology, as well as increased overall globalization efforts, consumers are becoming increasingly sophisticated in the quality and type of communication and entertainment that they expect. Nowadays, communication, news and entertainment provided by DirecTV and similar services have become a necessity in the modern world.

In the economic aspect, general economic conditions and level of economic development in a particular country or region may hinder some feasibility of these types of services. In general, they are needed and used by markets worldwide regardless of overall economic conditions.

In the political/legal aspect, it exist legal constraints in the US to access to the US market as well as competition policies.

INDUSTRY OVERALL

PORTER ANALYSIS

? BARGAINING POWER OF BUYERS

The power of buyers is high because it exists a lot a cable and satellite rivals in the US market and consumers can change their preferences due to the prices offered.

? BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is high because due to the popularity of DirecTV, many viewers hooked up on it. So, all programmers look for News Corp's systems.

? THREAT OF NEW ENTRANTS

The threat of new entrants is moderate because it's true that it requires a lot of investment in order to operate in this market as well as innovative ideas to survive but new entrants had two options. Those options are: whether to belong to less innovative but conventional cable services or to innovation-based and value-adding satellite services.

? THREAT OF SUBSTITUTES

The threat of substitute is moderate because even if it exist other cable and satellite companies, News Corp are offering innovative programs and additional features lacking on competitors.

? RIVALRY BETWEEN COMPETITORS

The rivalry between competitors is moderate. This USA market is very competitive, it exist some cable and satellite companies but the features offered by DirecTV had made to become on a differentiated service.

? INTERNAL ENVIRONMENT

SWOT ANALYSIS

TRENGHTS

• DirecTV is the first entertainment service in the USA to deliver all digital-quality, multichannel TV programming.

• Best known for being the largest provider of direct broadcast satellite (DBS) television services.

• Digital quality video and audio programming.

• High powered geosynchronous satellites.

• PanAmSat system.

• Aggressive marketing campaigns.

• Worldwide satellite distribution system.

• Innovative programs.

• Control of mix of programming and the means to deliver it to households.

• Development of its own DVR.

EAKENESSES