Free Times Warner Inc Strategies And International Operations Case Study Sample

Introduction

Businesses are increasingly operating in a complex environment owing to changing market factors. Such factors range from economic, technological, competition as well social factors. In that respect, companies have to devise strategies for their growth and competitiveness. Further, the emergence of new markets presents opportunities that businesses can utilize by venturing into the new markets. In that view, the analysis seeks to demonstrate how companies respond to the market changes and needs through various strategies for generic growth, as well as international expansion. To achieve the objective, the analysis uses the case of Times Warner Inc as a Company in the TV broadcast and cable networks industry. The analysis provides an overview of the company’s generic growth strategies as well as international market strategy.

Analysis

Company Overview
Times Warner Inc is an organization in TV broadcast and cable networks industry having businesses in TV, film, and entertainment and using leading industry operations scale. In addition, it creates and delivers high-quality content to a worldwide market via a multiplatform basis. The business also leads the industry by harnessing technology for the creation of services and products that reach and entertain audiences in creative ways across the world, and that engage people with stories and experiences that they love. The business has a “Content Everywhere Initiatives” that provide customers with access to the company’s high-quality content across the platforms as well as devices as demanded. In addition, the company has digital services and products that reinforce its industry leading brands and storytelling capabilities. The digital products include the Cinemax and HBO services that provide pay0-televission leading SVOD services, the Cinemax and HBO on demand, as well as the HBO programming mobile and online devices. The brands are supported by its people who share the passion for storytelling and the commitment to excellence in everything the Company does. (Yahoo Finance, 2014)

How the Company strengthened its generic strategy through complementary strategic moves in the industry

The Company set a strategy to become the leading video content company several years ago. In that respect, it set goals to become the preferred home for best ideas and talents as well as create an engaging as well as a valuable content that it shares with customers across the geographic and technological frontiers. (Time Warner Cable, 2014a) The strategy has been marked by four components as follows

The use of the industry leading brands and scale to increase its investments in its storytelling.

Harnessing technology and developing business models that increase the value of its content to customers as well as distributors while driving growth for the business

Optimizing a company’s capital and operations efficiency for provision of attractive returns to its shareholders.

Expanding its operations to increase presence in the most attractive markets hence taking advantage of the growing demand for content in the world wide market. (Time Warner Cable, 2014b)
  In 1940’s the industry was marked by entrepreneurs that used Army surplus coaxial cables and simple antennas to create the first cable television systems that revolution the way people watched TV. However, after 70 years the Company has grown to become the second largest cable provider that owns and manages well-clustered and advanced cable network across the United States. The Company provides cutting-edge digital technology in a rich range of information choices and home entertainment that provides superior services for the whole family, and that demonstrates customer satisfaction as the number one priority. In that respect, it has been a leader in technical innovation through its use of fiber optics as a means of improving as well as expanding its cable services and products. That has been through a number of milestones as follows
In 1973, the Company acquired 9% of ATC that had been founded in 1968. The company also agreed to acquire 100% of ATC five years later.
In 1989, there was a merger between Warner Cable and Time Inc that later became Time Warner Inc. The mergers was a strategy to enhance the company’s market reach and expansion of its brands to add more value to its customers in face of increasing competition.
In 1992, Time Warner Cable was formed between ATC and Warner cable and the company launched NY1 News in New York City. (Connie, 1994)
In 1996, the company launched Roadrunner that was the first high-speed cable delivered internet service. The strategy was in response to market competition hence a need for added value products and services that could differentiate the brand from its competitors.

In 2006, the company acquired Adelphia gaining additional employees and systems

In 2007, the company became public as a means of enhancing its capital bases that would be used for development of innovative products and services, as well as expansion to emerging markets.
In 2009, there was the separation of TWC from Times Warner Inc. The separation was a result of failure for the strategy to meet is objectives of achieving synergies as well as system efficiencies. (Time Warner Cable, 2014b)
The company is a result of various mergers with its cornerstone being the Warner Studios and HBO. However, some of the mergers and acquisitions have not been successful that led the company to push off the Time Warner Cable Inc as well as end its merger with AOL in 2009. The failure of the merger with AOL was a result of the inability to create the desired efficient and meaningful synergies. That resulted to AOL selling some of its shares to Google in 2006 as a means of enhancing its distribution through Google search. (Time Warner Cable, 2014a)
Testament to the Company’s competitiveness and popularity in te market was the success in renewal of its carriage agreements with seven of the ten distributors of its video content over past five years. The deals were consistent with the company’s expectations for accelerated growth in local and international subscriptions. That acted as a validation and accelerator of the company’s growth in the industry. (Times Warner, 2013)
In addition, the company continues to set new standards that are exemplified by the Warner Bros winning of 2014 academy awards. That was enabled and enhanced by increased use of technology. Further, technology application makes the television programming, films making as well as journalism easily accessible to customers and more vibrant as well as helping it enable unprecedented choice and quality. (Times Warner, 2013)

Company’s strategies for competing in international markets

International expansion has been one of the Times Warner’s key goals that has been done with its major revenue producer; the HBO. The network has over 114 million subscribers in the worldwide market that provides it larger customer base compared to its competitors. The HBO is distributed across more than 60 countries in Asia, Europe and Latin America. The company’s customer profile can be summarized as including 15.1 million customer relationships and 10.8 million residential subscribers of its videos. In addition, there are 11.5 million residential subscribers of high-speed data as well as 4.9 million residential voice subscribers. (Time Warner Cable, 2014b)
In its international operations, the company also believes that the business and marketing innovation is driven by curiosity hence its curiosity about media technology and consumers. In that respect, the company has been fostering collaboration because the current market’s challenges are beyond individual contribution while collaboration accelerates its progress. An example was the launch of the Medialab at Times Warner. The lab was a state of the art platforms that was meant to increase consumer’s insights as well as optimize the content’s experiences. In addition, it helps the Company and its partners to navigate the increasingly connected and complex media world. The Medialab is an illustration of the Company’s commitment to using of innovation and technology use. The 9600 square foot facility allows it and its partners to understand consumer behavior that relates to distribution and content across all the platforms. (Time Warner Cable, 2014a)
The company also targets opportunities in the early and mid stage brands that generate strategic value for its business. In that respect, the company has a track record as well as a forward-looking strategy that push boundaries of innovation trough investments in companies that develop partnerships with its various divisions and within the industry. The potential investments objectives usually entail delivery of new as well as existing services and products. It also has objectives of expansion and entry into new and strategic markets in addition to harnessing research and development, as well as completion of strategic partnerships. Currently, the business has a target to acquire minority equity stakes in several private companies to about $25 million. (Time Warner Cable, 2014b)
In that respect, the company, s foreign markets entry has been through acquisitions and mergers that provide access to developed systems and market knowledge. On the other hand, its international competition has been driven by strategic positioning in growth areas through innovative brands that seek to offer better value than competitors. Finally, the company leverages its operations internationally through the use of its multi platforms. (Time Warner Cable, 2014a)

Conclusion

In view of the analysis, it is clear that Times Warner Company has been able to achieve growth through various strategies ranging from innovation, expansion through products and services development as well as through mergers and acquisitions. Those strategies have been timed to enhance the company’s competitiveness in the face of increasing market complexity as well as new entries. However, some strategies succeeded while others failed to meet their objectives hence resulting to the company’s withdrawal from key partnerships and mergers. Such failed strategies include the failed merger with TWC and the acquisition of AOL. In view of the company’s international operations, Times Warner Inc has applied various entry strategies including acquisitions and mergers as a means of taking advantage of local systems development and market understanding. In addition, the company has used multi-platforms and technology to leverage its operations. Finally, there has been using a wide range of differentiated brands as a means of competing in the international market.

References

Connie, B. (1994). Master of the Game: The Creation of Time Warner. New York:
Simon and Schuster.
Time Warner Cable. (2013). 2013 Annual Report. Retrieved from,
http://www.envisionreports.com/TWX/2014/17626FE14E/default.htm#p=1&c=0&v=1?voting=false
Time Warner Cable. (2014a). Company Overview. Retrieved from,
http://www.timewarnercable.com/en/about-us/company-overview.html
Time Warner Cable. (2014b). The Company: About US. Retrieved from,
http://www.timewarner.com/company/about-us
Yahoo Finance. (2014). Times Warner Inc Profile. Retrieved from,
http://finance.yahoo.com/q/pr?s=TWX+Profile