An Analysis of DirecTV and its Current Strategic Market Plan
Southern New Hampshire University
Publicly held companies are not successful by chance. They have to utilize systems that will determine their future and identify potential financial risks, be they environmental or by fellow competitors. The company will focus on five areas of concern that will lead the public to a better understanding of its goals and areas that need improvement. It will make public by means of an organizational statement an outline detailing its purpose as well as general guidelines for accomplishing it. The company will then reveal (with concrete evidence through specific examples) its most formidable skills, talents, and experiences, otherwise known as their distinctive competencies. Next, it will analyze trends or conditions that have enabled the company to reach a particular market, known as market opportunities. The trends will originate from the external marketplace and may come in forms such as economic conditions, consumer spending, or political environments. Then it will state its accomplishments and organizational objectives that will be the guiding principles by which the company will achieve its future goals. And finally, the company will assess its brand. The author considers these factors essential to understand the strategy of the organization and illustrates ways to increase customer retention.
Keywords: marketing strategy, mission statement, market trends core competencies, brand
To analyze the strategic marketing plan implemented by DirecTV (DTV), one must complete the following tasks: study its mission statement, distinct competencies, market opportunities, objectives and accomplishments, and its current brand equity. Using models such as Humphrey’s SWOT analysis, Duane Knapp’s brand strategy methodology, and David Olgivy’s concepts of brand and corporate culture, the reader will reach a greater understanding of the achievements that have led DTV to its present position as well as the challenges the company faces in order to become a relevant competitor in the sphere of multichannel video programming distributors (MVPD).
DTV’s vision is to “provide customers with the best video experience in the United States both inside and outside of the home by offering subscribers unique, differentiated, and compelling programming through leadership in content, technology, and customer service” (DTV 10-K Annual Report, 2011). This broad, all-encompassing mission statement reiterates the extent of its endeavor to dominate the market of pay-TV. It allows the organization to achieve its long-term goal of creating value by insuring a high return to its shareholders. Here, DTV endeavors to offer innovated technologies to the consumer while securing a strong bond between customer and provider, through impeccable customer service, which enables the company to overcome the challenges of inseparability. What then are the company’s skills, talents, and experiences that make it one of the leading providers of multichannel video programming distributors in the United States?
One of DTV’s core competencies enables it to distribute more channels to a wider audience at less cost than ground-base television services. One channel that boots its subscriber base is the NFL Sunday Ticket which delivers out-of-market games to particular areas. Furthermore, because the FCC has extended the company regulatory authorization to use coveted orbital slots in the certain broadcast spectrum, it’s able to provide more coverage to the contiguous states. This gives the company a competitive advantage which “ultimately derives from how well the company has fitted its core competencies and distinctive capabilities into tightly interlocking ‘activity systems’” (Kotler and Keller, 2012, p.35). Its ability to maintain a...
References: DirecTV Form 10-K Annual Report (2011). Filed 02/28/11 for the Period Ending 12/31/10
Kotler, P. & Keller, K. (2012). Marketing Management. (14th ed., p. 242). Upper Saddle River, NJ: Pearson Education, Inc.
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Lawrence, Lucie. (2011). Strategy at Work. A Strong Connection: DirecTV Raises the Bar on Employee Engagement. [Towers Watson]. Retrieved from http://www.towerswatson.com/assets/pdf/5908/Towers-Watson-Stategy-at-Work-DirectTV.pdf
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