The Impact Of Macroeconomic Variables On The Telecommunication Industry

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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,…show more content…
"The US's premier operator in the broadcasting & cable TV market is Comcast. Its 2005 revenues of $22.3 billion places it firmly at the top of the sector; while the company attributes revenue growth of 9.6% to the business innovations which Comcast is deploying in the search for new revenues." University of Phoenix (2007) While Comcast provides many different types of services and products this paper will concentrate on one of its primary services which is cable operations, as defined by the North American Industry Classification System (NAICS); code 517500 Cable and other program Distribution. "This industry comprises establishments primarily engaged as third-party distribution systems for broadcast programming. The establishments of this industry deliver visual, aural, or textual programming received from cable networks, local television stations, or radio networks to consumers via cable or direct-to-home satellite systems on a subscription or fee basis. These establishments do not generally originate programming material." NAICS (2007) Macroeconomic variables that affect the cable industry Some of the macroeconomic variables that impact the cable industry are gross domestic product (GDP), inflation, trade, interest
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