SWOT Analysis of DirecTV
Based on a Satellite transmission system, DirecTV is a broadcast satellite service provider in United States of America. It is headquartered in California and provides its services to over 20 million subscribers in America. It is one of the few monopolists that control the television industry on America. It was founded almost two and a half decades back, in 1985. Its predecessor was the Hughes Electronics Corporation. In 2011, it had annual revenue of $27.3 billions and its assets valued up to $18.4 billions. In 2011, this business was an employer of 25700 employees.
DirecTV is strong in many areas because of the distinctive services it provides to the US residents. Besides, it has a wide coverage network round the whole America and is well-known and famous through out the country.
It provides different kinds of transmission satellites, the one that catches simple frequencies and the one that catches HD frequencies and is highly affordable in both the categories. Because of its affordability, it is the preference of most of the US citizens. It also offers DVR option. DVR stands for Digital Video Recording and can store matter up to 160 GB (Newer models offer storage capacity of 320 GB).
It provides additional services, for example, it controls some of the very famous channels like Audience Network. Another strong point of DirecTV is that it offers channels in multiple languages like Spanish, English, etc. It does not usually face signal problem or distortion in lines and works very smoothly. This is why it has received an overwhelming support and response, being another strong point for it.
Huge sums of operating expenses are perhaps the greatest weakness of DirecTV. A large amount is invested for the maintenance and repairing of the satellite system. Also, being the controller of a large amount of market share, it ought to spend money on research and development in order to stay competitive and maintain its position.
Opportunities for DirecTV
It can also diversify in to providing Internet services and cellular products, both of which has a link somehow with the satellite and signal. This can be a tremendous opportunity for DirecTV. This opportunity will prove to be economical and cost-effective since the company wouldn’t have to work much on the pre-established satellite systems and infrastructure.
Threats for DirecTV
The DVR facility that DirecTV offers, records just the shows that are broadcasted, rather than the commercials. Most of the American population uses the DVR system to watch their favorite shows, since they are busy for the entire day. Missing commercials can mean that the viewers never get to know of what is new in the market and what is being advertised. This could hurt Advertisers and they may withdraw advertising with DirecTV. They may prefer alternatives and this could really become a disaster for DirecTV that has a main part of its income generated through advertisements.
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SWOT analysis on DirecTV group. Retrieved from:
DirecTV. Retrieved from:
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