The external analysis of Dish Network shows the TV service providers industry and environmental factors that affect those companies in the industry. The two studies that were used to examine the external factors were PEST Analysis and Michael Porter’s Five Competitive Forces. Through these two studies, Dish Network can have a better understanding of not only their industry factors, but other environmental issues that may cause a need for concern.
The first study that we will discuss is the macro-environmental study PEST. This study was used to examine the four main environmental factors that could/would affect those in the industry. The four main environmental factors include political, economic, social, and technological. These factors are usually ones that those in the industry have little to no control over.
The first factor to consider is the political environment. Satellite taxation could pose a threat to Dish Network and the rest of the satellite industry. In early March of last year, there was a proposal to add a seven percent tax on satellite services (Newkirk). This new tax could pose a threat for satellite companies because current users may not want to pay those higher rates. The next political factor is the law. There are several laws that the TV service providers industry must follow to ensure all good standing legality. A few of the laws include customer service guidelines, network program non-duplication, and sponsorship identification (FCC). Labor laws, such as Fair Labor Standard Act and Equal Employee Opportunity, are also laws that are imposed for the industry. Not abiding by the laws poses a threat to those in the industry. It could pose negative publicity for the company as well as lead to large sums of fines.
The next environmental factor in the analysis is economic. Inflation rates have a large impact on the TV service providers industry. If the inflation rate is high, then prices for the satellite dishes will also...