Comcast Corp. (CMCSA) is a multimedia company based in Philadelphia, PA. Comcast is the largest broadcasting, cable, and home Internet Company in the world and also stands as the third largest home television service provider. Some of the businesses under the Comcast umbrella are Comcast Cable, NBCUniversal and Comcast Spotlight and is how the business maintains vertically integrated operations from production to distribution and communications to broadcasting and advertising. Comcast derives its business through five operating segments. Cable Communications which contributes the lion’s share of the business and the other four, NBCUniversal, Cable Networks which included USA Network, MSNBC, and NBC Sports. Broadcast Television which are NBC …show more content…
Because Comcast can change the profit margin for a suppliers because they can order for the entire enterprise, price negotiations can always be on the table to Comcast and most supplier are willing to negotiate for a chance to see their revenue increase in the millions. Bargaining power of customers-This is a challenge for any company because all companies must acknowledge that the customer is the final stop and if the consumer is not happy it will affect the bottom line. Other cable company offers lower pricing and the consumer sometimes leaves Comcast because they maybe overpriced but they also realize that they are not getting the same quality that Comcast can offer. Comcast, of the other hand cannot raise they prices to any amount they choose to because they must realize that their product is a luxury and not a …show more content…
Comcast will likely pursue other strategic acquisitions in the future. Following a decade of expansion in the 1990s, Comcast made a huge splash when it purchased the broadband operations of AT&T for $45.5 billion in 2001. Even though the acquisition of Time Warner fell through, Comcast continues to acquire smaller firms. In 2014 they acquired Power Cloud Systems and Freewheel Media, the addition of both of these companies has placed Comcast in a position to take advantage of some new trends in the industry. As more Americans are using their smart phones to watch movies and control their appliances, the acquisition of both these companies has again given Comcast the advantage because both these companies will provide Comcast customers with the continued bandwidth that they will need to use their devices where ever they