Charter Communication Company: Case Analysis

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Table of Contents

Introduction
Objectivities and Strategies of Charter Communications Inc
A strategy to improve its opportunity
A strategy to mitigate threats
Competitive profile matrix
External factor matrix
References

Introduction

The growth and sustainability of Charter Communication Company lie in the implementation of its objectives and business strategies. The objectives and business strategies of the organization must align with the market trend and market target (David, 2011).

Charter communications is a leading company that manufactures Internet and broadcasting cable, it provides high-speed connections to corporate organizations, government agencies and home user. The company has its headquarters in the United States.

The mission of Charter Company is to offer value to all customers. The company will achieve its goal by providing quality product and services at fair prices. The strategies of the organization align with its internal and external conditions.

Objectivities and Strategies of Charter Communications Inc

The objectives of Charter Communications build on quality service to meet customer’s satisfaction. The objectives are highlighted below

To provide high-speed Internet, digital connections to its customers.
To become the leading manufacturing company in the telecom industry.
To provide affordable products and service to its customers.
To maintain its quality and transform the world with digital technology.

Charter Communications International has a projected 5.5 million client base. The company relies on its business strategy to satisfy its clients. The objectives of the organization can be achieved with an effective business strategy. The performance of the organizations is attributed to the correlation between its objectives and business strategies (Bygrave & Zacharakis, 2010). The strategies include

Commitment to its customers: The Company provides customer support to its clients. The organization is committed to the improvement of its products and services. Their customer support team is efficient and always ready to render its service to its customers. The internal factor of success can be used to strengthen its external factors of success. An updated information unit will assist customers to make choices from its list of products and services.
Efficient Employees: The Company utilizes its internal strategy to position the organization as a leading service provider. Their efficient and productive employees provide quality service to her numerous clients.
The organization synchronizes its operations and market synergy to meet customers demand.

A strategy to improve its opportunity

To maintain its growth, Charter Communications manufactures compelling broadband products with lower cost of transactions to meet customer’s satisfaction. The company achieves this feat by sourcing its raw materials from low-cost sites. The production cost will be reduced and thus, its sales will be lower than similar products.

The company provides its sales points at different locations to reduce the cost of transactions. Customers will choose a favourable location to save cost. Customers are willing to patronize a particular company when the cost of business transactions is reduced (Rao et al., 2008).

A strategy to mitigate threats

The notable threat is the competition from similar manufacturing companies. Similar products flood the market, thus, reducing the sales of Charter’s products. However, the management of Charter Communications utilizes product differentiation to overcome this threat. The quality of its products and services provides the competitive advantage to mitigate this threat.

The low-cost of production encourages customers to patronize Charter’s broadband products and equipment. The advantage of a competitive profile matrix transcends its components; it compares market strengths and weakness of competing firms. The variables for the analysis include the quality of products, management, prices, to mention a few.

A competitive profile matrix can be used to analyze a company’s internal and external conditions. The analysis compares the success and failures of different companies (Rao et al., 2008). The analysis is presented in a matrix format.

The format includes a rating section, which indicates the firm’s response to success. The weight section indicates the relevance of the variables of change to the company. The weighted score can be compiled by multiplying the variable success with its weight. The total weighted score section is the sum of each factor for success.

Competitive profile matrix

		Charter company		Verizon communication		Cox communication
Key success factors	Weight	Rating	Weight score	Rating	Weight score	Rating	Weight score
Customers care services	0.2	2	0.4	3	0.6	2	0.4
Advertisements	0.1	3	0.3	4	0.4	3	0.3
Price competitiveness	0.2	3	0.6	3	0.6	4	0.8
Network coverage	0.1	2	0.2	4	0.4	0.3	0.3
Streaming speed	0.1	2	0.2	4	0.4	3	0.3
Mobile banking	0.3	1	0.3	1	0.3	1	0.3
Product Differentiation	0.4	2	0.3	1	0.2	2	0.1
Service delivery	0.5	3	0.1	2	0.1	1	0.1
Total	1.0	2			2.7		2.6

Average score 2.075

Minor weakness
Major weakness
Minor strength
Major strength

The analysis shows a strong rating between the competing firms. Charter Communications recorded high success in its customer support services. The advertisement ratings show higher value. Its service delivery is a competitive advantage for the organization.

The company’s weakness in mobile banking reduces its growth. Similar firms such as Verizon and Cox Communications recorded high ratings in their network coverage. The ratings dropped significantly with their product delivery services.

External factor matrix

External factor matrix assesses the business trends of a company. The analysis reveals the threats and the opportunities of an organization. The external factor matrix comprises of a list of external factors, which influences the success of an organization.

The components of the external factor evaluation include cultural, political, and economic factors. The external factor evaluation matrix of the Charter Communication Company is presented below.

An external factor evaluation matrix

	Weight	Rating	Weight score
Globalization trends	0.11	4	0.44
Government policy	0.12	3	0.36
Foreign exchange rates	0.15	1	0.15
Taxation	0.12	2	0.24
Political situation	0.14	2	0.28
Economies of scale	0.10	3	0.30
Per-capita income	0.05	3	0.15
Growth of economy	0.08	4	0.32
Inflation	0.05	2	0.10
Stock market trends	0.08	2	0.16
Total	1.0		2.5

Average 1.75

Minor threat
Major threat
Minor opportunity
Major opportunity

The evaluation matrix for Charter Communications shows a strong rating in global trends and a poor rating in its exchange rates. The economies of scale, government policies, pre-capita and taxation recoded average in the rating. The success factors in the organization determine the growth of the organization and measures the strengths and weakness of the company.

The report provides a comprehensive analysis of the strengths, weakness, opportunities and the weakness of the Charter Communication Company. The objectives and strategies of the organization provide the platform for effective management of each production unit. An effective business plan influences the critical success of the organization.

The competitive profile matrix can be used to reorganize the organization. The challenges faced by the organization can be reduced using the analysis in this report. A comprehensive report includes the objectives, strategies, internal and external matrix evaluation of the organization.

References

Bygrave, D., & Zacharakis, A. (2010). The portable MBA in entrepreneurship. Hoboken, N.J: Wiley.

David, F. (2011). Strategic management: Concepts and cases. Upper Saddle River, NJ: Prentice Hall / Pearson.

Rao, P., Rao, A., & Sivaramakrishna, K. (2008). Strategic management and business policy: Texts and cases. New Delhi, India: Excel press.

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