Comcast - A BCG Star

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Comcast has recently become one of the largest names in mass media and communications. Through the endeavors of growing their organization with the successful merger of Time Warner Cable (Lee, 2014), creating a brand that is known Nationwide, and increasing their market share by 12% in February, Comcast has proven its status as a star when referenced to a Boston Consulting Group (BCG) matrix.

Comcast’s purchase of Time Warner Cable is placing itself into 19 of the 20 largest U.S. TV markets (Baker, 2014). By doing so Comcast has grown their organization efficiently. This has increased its market share from 25% to 37%. Along with the growth of the organization’s reach across the United States, the growth of potential employment opportunities and increase in negotiations will increase profit and brand recognition as well. Brand recognition builds the companies rapport, whether good or bad, by becoming a leader in its market. Although Comcast’s purchase of Time Warner raised antitrust issues, the publicity allowed its market growth to increase. On February 13, 2014, the purchase date of Time Warner, Comcast’s customer count went from 19,986,000 to 31,545,000 due to the acquisition (Trefis Team, 2013). Completing such an endeavor has allowed the number one and two mass media and communication companies to merge, which will allow prices to be driven down to combat increased competition from the remaining competitors such as Direct TV.

Overall Comcast is a rising star in a communications market that is becoming slimmer over time because the lower market share organizations are becoming part of a larger communications merger. The Comcast/Time Warner merger has allowed Comcast to become the largest provider in 19 of the 20 markets nationwide. Now that Comcast has the number one position as the mass media and communications leader it can expect to become an even larger brand in years to come.

References

Baker, L. A. (2014, February 13). Comcast takeover of Time Warner Cable to reshape U.S. pay TV. Retrieved from http://www.reuters.com/article/2014/02/13/us-comcast-timewarnercable-idUSBREA1C05A20140213

Lee, T. B. (2014, February 19). The Comcast/Time Warner deal isn't about competition. It's about power. Retrieved from http://www.washingtonpost.com/blogs/the-switch/wp/2014/02/19/the-comcasttime-warner-deal-isnt-about-competition-its-about-power/

Trefis Team. (2013, September 25). Broadband Will Continue to Drive Growth For Time Warner. Retrieved from http://www.trefis.com/stock/twc/articles/207096/broadband-will-continue-to-drive-growth-for-time-warner-cable/2013-09-25