IM - Unit 1 Assignment - Annie Namgoong
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Annie Namgoong
Week 1 Assignment: Factors of The Macroenvironment
MT140 Introduction to Management
Purdue University Global
Dr. Brenda Harper
9/24/2023
2
Introduction There are many factors that comprise a business’ competitive environment and macroenvironment. These factors can directly and indirectly affect the success of an organization. As a result, many of the decisions made by an organization are a result of both the competitive environment and macroenvironments. I will be further discussing how rivals, new competitors, suppliers, customers, substitutes, laws and policies, economy, technology, demographics, and social factors have affected the strategic decisions made by Charter Communications, Inc. Factors of Competitive Environment
Charter Communications, Inc. is a telecommunications company that provides connectivity to its over 32 million customers. Core products provided include video, internet, home phone and mobile service, with the latter being provided through a partnership with Verizon. State-of-the-art services are offered to both residential and commercial businesses. Since being founded in 1993, Charter Communications, Inc. has brokered multiple deals with rivals such as Crown Media, Marcus Cable, and in 2015, Time Warner Cable, to name a few, accumulating 15 acquisition deals in its first 4 years, with many more to follow. The focus was to grow their customer base as it focused on expanding its footprint for service distribution. These acquisition deals directly impacted Charter’s ability to grow to the 2
nd
largest connectivity company in the nation.
Charter Communications, Inc. has consistently been impacted by new competitors as technology advances. While simultaneously serving as a huge competitor to other telecommunication companies. The expansion of its network and growing demand from consumers for faster and higher quality service has driven Charter to offer competitive
3
services such as mobile service in an extremely competitive market. However, Charter has bundled its services to complement each other for an experience unique to their customer base. Charter’s customers have access to the vast network both in and out the home through use of Wi-Fi and Access Points. Another major factor in Charter Communications, Inc. competitive environment is its use of suppliers. While Charter is the direct supplier of connectivity to its consumers, it relies on Verizon to provide mobile service to customers. This partnership with Verizon
has been a successful venture for Charter allowing it to provide an additional form of connectivity to its customers. Mobile service is bundled with internet service to provide a
seamless experience of reliable, high-speed service.
Customers of Charter Communications, Inc. are demanding, and deserving of, a product that is innovative, efficient, and continuously evolving. This demand directly impacts Charter’s ongoing maintenance of its infrastructure and the ongoing efforts to create a greater, faster product. There have been increases in speed for the internet service which continues to be their highest source of revenue. Substitutes for Charter’s core services keep the organization constantly thinking of
ways to further improve their service. The introduction of streaming video service and subscription-based app programming have shifted many customers away from the traditional set-top box way of life. Gone are the days where a customer has very few choices for TV programming. To capitalize on this shift, Charter has given its customers access to programmer-authenticated applications and the option to access apps such as Netflix and YouTube on their set-top boxes. Factors of Macroenvironment
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