Directv Case

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DirecTV Case

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Table of Contents

Phase II3

Current strategy3

Possible alternatives4

SWOT matrix5

BCG matrix6

Space matrix7

Core values9

Current organizational structure11

Phase III13

Product positioning map13

Achieving most favorable market position14

Implementing the strategies16

Specific results16

Financial projection17

Projected income statement17

Projected balance sheet19

Projected statement of cash flows19

Executive summary20

References22

DirecTV Case

Phase II

Current strategy

The current strategy of DirecTV is to position the company as providing the required differentiation in the market. Therefore, DirecTV currently has a differentiated product in the market which is different from all of the offerings of its competitors. The current competitors that include the Dish TV, cable service, and Comcast are all not able to match the TV offerings that are provided by DirecTV. Additionally, DirecTV has also not resorted to being the low-cost provider of services as it is mostly providing its Satellite TV services at a premium price. The regular price for the service averages about $20 per month. On the contrary, the most basic service provided by DirecTV is priced at $40 per month. DirecTV also has other premium and specialized services that range to about $80 a month (Hill & Jones, 2013).

Therefore, DirecTV has adopted a differentiated product strategy where it is targeting its various products and services to different customer groups and market segments. It is also providing its product to the business customers who have a range of different products and services available to them.

Furthermore, it has adopted the strategy of providing a differentiated product to the market which is very high in technological content. Hence, the customers of DirecTV are able to see multiple channels in a single screen. Further, they are also able to record their favorite programs and channels and they can continue to watch the movie from where they had left, even at another location within the home. The product is also available on all of the various technological products such as the phone, laptop, and other outlets like the PC (DirecTV, 2012).

Possible alternatives

DirecTV also has multiple possible alternatives to its current product market strategy. For example, the company is already very successful and therefore it may wish to pursue other corporate-level strategies like related or unrelated diversification. These strategies range from new product development strategies to geographic or market expansion. Further, it may also look to other corporate-level strategies like vertical or horizontal integration. Then, it also has the opportunities to restructure the business if it wants to include a different organizational structure. The company can also grow internally through engaging in mergers and acquisitions or leveraged buyouts of competing firms in the industry. Finally, it is needless to say that the DirecTV has numerous opportunities to expand globally and it has already adopted this corporate level growth strategy. It is currently providing its services internationally in multiple countries and in multiple languages (Furrer, 2011).

Therefore, the most obvious strategies for its corporate level growth have already been identified. For example, DirecTV could look forward to acquiring the businesses of its suppliers like acquiring major television channels and broadcasting services. However, it appears that DirecTV might not have the relevant finances available ...
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