Management 499 Case 2: Environmental Assessment Dish Network Inc.
Module 2 - Case
Environmental Assessment
Case Assignment
In this assignment you will be asked to once again consider Dish in responding to the following two requirements:
Why is it best for large organizations like Dish to use both PEST and Porter’s 5 Forces analysis in helping its leaders to understand their particular external environment? Make sure you demonstrate understanding of both analytical processes in your discussion and give clear, Dish-related examples to support your arguments.
Second, describe how the information obtained from the organization’s macro-level external analysis might be used by an organization like Dish in performing their SWOT analysis.
In short, what should an organization like Dish be doing to analyze the external environment at the macro-level and how does that overlap with the organization’s micro-level analysis efforts? Make sure you provide well-reasoned and well supported arguments.
Assignment Expectations
Your case assignment should be a minimum of 4 pages in length.
You are required to use APA formatting and you are required to cite and reference your sources. There should be a minimum of three reputable sources cited and referenced in your paper.
Please make sure you review the assignment rubric prior to writing your assignment.
Environmental Assessment
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Introduction
Dish Network Inc. is the fourth biggest pay-TV provider, offering direct broadcast satellite services as well as audio programming, satellite television, and interactive television services to about 14 million residential and commercial subscribers in the United States (Wilkinson and Kannan, 2013). The firm has an estimate of 24,000 employees who are mainly located within the United States. The company’s headquarters is located in Englewood, Colorado, the U.S. and it was established in 1980.
The contextual analysis is important as it can enable the firm to have an unbiased and clear view of its potential threats and opportunities, and major weaknesses and strengths. The analysis can enable the firm to develop strategies to augment its business and to enable it to understand its competitors, customers, and business partners better (Wilkinson and Kannan, 2013). This will help to gain the understanding of the company and factors which influence its strategies, and to remain dated on the company’s prospects. This paper aims to examine what Dish Network should be doing to analyze the external macro-environment and how this macro-environmental analysis overlaps with company’s internal microenvironment efforts.
Analysis of External Macro-Environment
PEST analysis
PEST analysis refers to a framework that is utilized to scan the company’s external macro-environment (Hitt, Ireland, and Hoskisson, 2015). Within every industry, there are factors which affect its economy. As Dish makes its way to TV and media industry, one important approach to analyzing the environmental factors which are driving competition is the PEST analysis. The PEST analysis is a system which used to analyze technological, economic, political, and social factors the environment in which the firm operates. These factors have an influential role in the creation of valuable opportunities of the organization’s strategy. Nevertheless, these factors are typically beyond the control of the firm and must typically be regarded as either opportunities or threats.
Political factors refer to the extent and how the government intervenes in the industry (Wilkinson and Kannan, 2013). Dish is subjected to observe industry specific regulations and laws defining the operations of its business commitments.
Economic factors have crucial effects on how the organization operates and creates decisions. In TV and media industry, DISH has many competitors such as Netflix, DIRECTV, Comcast, Time Warner, TiVo, and AT&TU (Hitt, Ireland, and Hoskisson, 2015). Therefore, Dish has to create strategic focus to gain a competitive advantage over its competitors.
In social factors, some trends affect the demands of firm’s products and services and how the firm operates (Charles, Melissa, and Gareth, 2016). At present, consumers are abandoning the traditional pay-TV subscription in preference to online streaming services. Customers now prefer on-the-go lifestyle and demand their entertainment to fulfill their dynamic needs.
Technological factors involve technological things like innovations, R&D activity, technology incentives, and automation (Hitt, Ireland, and Hoskisson, 2015). Dish is a technological innovator and strives to ensure that it is updated with the technological development.
Porter’s Five Forces Analysis
Dish can use the porter’s five forces models to assess the level of competition within the media and TV industry (Charles, Melissa, and Gareth, 2016). The five forces model include threats of the substitute product, buyers’ bargaining power, rivalry among competing firms, suppliers’ bargaining power, and threats of new entrants.
The threats of substitutes remain high. Dish managers should take stock of its direct competition, and understand competitors that can steal its customers. As a satellite TV business provider, Dish is facing a strong competitor that is DIRECTV. However, Dish’s satellite TV business also encounters a frightening challenge from substitutes, which are provided by cable TV companies like Charter Communication and Comcast (Hitt, Ireland, and Hoskisson, 2015). Dish also should be worried of Netflix’s streaming video services. If Dish increases its prices...