Time Warner Inc. Essay Example for Free

Time Warner Inc. Essay Time Warner Inc. is one of the biggest media conglomerates in the world it is only behind Walt Disney and News Corporation. The main areas of activity are film making, publishing and TV broadcasting. Time Warner combines subsidiaries like Warner Bros., New Line Cinema, Turner Broadcasting, through the last the company runs on air popular channels CNN, TBC and TNT. Also paid channels HBO and Cinemax are ran by Time Warner. The company affects almost all areas of media business thereby covering a large part of the media market. All sort of media productions are being produced to satisfy customers of any age category, gender and interest, which lead to the expansion of the range in concernment of company’s products. In order to have competitive advantage over the rivals, the company is improving service and the quality through their free movie channels, video based cable and new marketing to increase the number of customers, and also they attracted a big number of customers by their broadband and telephone services. To come to the point, Time Warner Cable launched its VoIP telephone service that included voice over IP (VoIP) communications, subscription-based and on-demand video services, and high-speed Internet access, launching this service critical differentiation from the competitors took place in the company, by that taking a large share of customers which used the services of traditional phone companies. One of the brightest strategic examples that the company experienced is Internationalization, a couple years ago Time Warner entered the Asian market, China and India and had 2 different consequences. All attempts to develop its media resources in China were failed because of harsh censorship and too many restrictions, also the company faced with problem of piracy. Favorable environment in Indian market allowed the company to flourish. Their strong competitor Viacom Company has also entered the Indian market with success and become top rated in recent years, Mtv India of this company is broadcasted in more than 30 million houses. For me the next wise decision for the company was collaboration with Netflix Inc. Time Warner gave to this online service a license to broadcast the shows of CW network. There are 2 positive things in this collaboration the first is optimal way of monetizing money and the second is that nowadays more and more people prefer to use internet for watching different shows and news, so this will help to hold customers. Part 2 1) Internationalization strategy. Jeffrey Bewkes chef of the company is going to expand the business overseas. The aim is to capture foreign markets which have future perspectives. They have already spent enough money on acquisition foreign production companies in India and in Eastern Europe and both projects are successful. For Bewkes Germany is a start point for penetration other European countries, and the company realized 19 movies for German market last year. In this strategy Time Warner faced with strong competition with Viacom Company which has spread much in the foreign market the owner of Mtv, Paramount film studio and Comedy Central. Data was taken from http://www.businessweek.com/magazine/content/10_07/b4166060309334.htm 2) Mobile Strategy. As it is very popular nowadays to use mobile phones and tablets, Time Warner Cable decided to move their business to these devises. The company states that a half of their consumers, choose to order mobile services using their own devices. As a result mobile sales of the company have grown from 0% to 10% in 3 months. Also Viacom Company is now allowing Time Warner subscribers to see their shows on their devices that certainly will have a positive impact. Data was taken from http://www.mobilecommercedaily.com/time-warner-cable-exec-20pc-of-digital-sales-come-from-mobile 3) Pricing Strategy. Time Warner Cable introduced their new â€Å"tiered pricing strategy† their aim was that if a customer increases network usage their costs also go up, this tactics should reduce a bill for customers with lower usage The data was taken http://ajnyc.wordpress.com/2009/04/16/the-real-culprit-behind-timewarners-pricing-strategy/ Part 3 1) Proceed Internationalization Strategy – There are still many countries that are favorable to expand business in. For example Russia is a big beneficial market for media companies, people of this country tend to watch western shows but it is not always possible. The company’s competitor Viacom successfully launched Mtv Russia in the mid. 90’s that is an example of successful foreign media project in Russia. 2) Joint Venture- We know about collaboration of Time Warner with companies AOL and Netflix, The first project was failed. But Netflix is a favorable case, it is a chance of expanding company’s capabilities to sell their products in a virtual network. So they should deeply analyze markets of companies that will help them to increase media broadcasting in a wider range. 3) Diversify the content- I think that Time Warner one of the biggest media groups have a potential to diversify its content launching more competitive projects, I would suggest them to open some music channel, it is very popular at present and attracts a large audience all over the world. The simple thing about that, the modern music is easily accepted by any culture in our planet.