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The Cable Company The Cable Company The new marketing director of CableNOW, Rachel Peterson, is currently faced with the dilemma of deciding which appropriate strategies she should design and implement given the increasing competitive pressures within the organization’s scope of operations. With two new satellite television networks, DirecTV and Dish Network, offering local residents options to switch from cable to satellite at significantly lower costs, Peterson is reflecting on the best alternative from among the options open to address competitive pressures.
In this regard, the following concerns are hereby addressed:1. What image or theme should CableNOW portray to subscribers? CableNOW should portray their ability, reliability and dependability to service local needs. Their strengths and competitive advantages to their subscribers should be emphasized, being the pioneer in their locality. Their primary selling point is that despite bad weather, the delivery of programming is clear and consistent. Further, the following advantages should be stressed: “the company offered local business and real estate listings to subscribers.
The firm also was able to provide local radar and weather forecasts during the "Local on the 8s" segments on the Weather Channel” (Case Facts, par. 3) which, as indicated, satellite stations could not provide. In addition, CableNOW’s ability to transmit local channels (which again, their competitors could not), should likewise be emphasized.2. Can you think of a way to emphasize in an advertising campaign the advantages CableNOW has? CableNOW’s advertising campaign should emphasize the image or theme abovementioned, portraying reliability and dependability to service local needs since they have been servicing their communities as pioneer in this field of endeavor.
CableNOW should use the local advertising medium: radio, cable, local channels and posters and brochures that emphasize their strengths and competitive advantages. By reaching the local constituents for the six communities of northeast Louisiana through the medium where satellite stations could not access, CableNOW would validate their reliability and dependability through all kinds of weather.3. Do you believe CableNOW will survive these changes over the next 10 years? Why or why not?To survive external changes and competitors, CableNOW should address the trend of considering capacity to deliver high definition signals as this is what technology is driving at.
Peterson must determine the cost of the investment and weigh the benefits, especially over the next 10 years, for changing towards HDTV. The new two active competitors, DirecTV and Dish Network, already have this capacity and they could use this as a vantage point to lure prospective customers to change from cable to satellite. Eventually, technology could dictate that the thrust for the future is completely relying on HDTV so CableNOW must accept the challenge and prepare to be more competitive over the next 10 years.
Reference“Case 1: The Cable Company.” Integrated Marketing Communications: Chapter 1.
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