Pest Analysis : Pest And Porter 's Five Forces

1314 Words Jun 1st, 2016 6 Pages
According to Mind tools (n.d.). PEST Analysis, PEST and Porter 's five Forces each analyze different aspects of a business. PEST (Political, Economic, Socio-cultural and Technical) factors are often considered to gauge the expected impact of business decisions, and the likelihood that the trend set will continue in a particular direction. PEST analysis allows a company to determine if the resources and capabilities used by the company support the company 's opportunities, or diminish existing threats, as well as the level at which the resources and capabilities match the company 's goals. Dish, with its ability to supply images right into customers ' homes, is in a position to spread political viewpoints, news about the economy, and …show more content…
In addition, competitors such as Netflix and Hulu offer video streaming in customers ' homes.
• Threat of New Entrants- The threat of new entrants is low, since opening and managing a big scale pay-TV business demands a huge set of resources, as well as an integrated distribution and supply chain network.
• Intense Rivalry among Existing Players- There is highly intense rivalry among existing market players since several competitors have merged to form even larger companies that can negotiate for better deals when purchasing programs from networks. Dish itself has considered a merger with DirecTV or T-Mobile US Inc. in order to compete in the marketplace. A bigger problem is competing with companies such as Netflix, which are already delivering video streaming right into customers ' homes.
• Bargaining Power of Suppliers- The bargaining power of suppliers is high due to Dish 's problems related to reduced profitability and growth. In addition, Dish is not necessarily a big fish when compared with its competitors.
• Bargaining Power of Customers- The bargaining power of customers is high due to multiple competitors present in the market from which customers can choose their favorite pay-TV or wired network provider.
According to Helms, M. M., & Nixon, J. (2010), Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis is often used as a tool for strategic-planning purposes, and is used to determine if recommended strategic actions are appropriate for a
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