Cox Communications Strategic Management Cox Communications Based Essay

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Cox Communications Strategic Management

Cox Communications

based multiservice broad-band communications organization named Cox Communications is headquartered in New York with approximately 20000 employees and more than 6m consumers. It's a subsidiary of Cox Enterprises. The company has a very capable, reliable and high quality network of broadband delivery due to which the customer service of Cox is unmatchable in the whole industry. To maintain this reputation in cable industry, the administrative system of workforce was upgraded and automated while keeping in view the increased levels of productivity of sales team and decreasing trends of costs. This is the reason why Cox Communications was successful in maintaining the service delivery. (Wallack 2008)

Automation was the key function which helped Cox Communications to prevail in the U.S. market. In order to increase the competitive advantage and sales team productivity, the fortune 500 company decided to automate various systems and processes. Cox Communications was successful in this automation phase and the market share of the company was increased suddenly after this change.

Cox Communications was privatized in 2004 when its parent company Cox Enterprises purchased the shares which were not the property of Cox Enterprises. This was a turning point in the history of Cox Communications as it was now being run differently in a market which is already lagging behind in technology. (Bandura 2006)

Cox Communication's Strategy in the Industry

As discussed in the previous section, the customer base of Cox Communications is not very thin. Cox has a wide range of customers including business as well as household clients. The service Cox offers includes superior digital video, wireless and & speedy Internet and telephony services. These services are rendered over a nationwide IP network owned and operated by Cox. Cox offers a very valued and high-speed internet with advanced communication solutions to its business clients. Additionally, the company provides video and data transport services to SMEs. These are the highlights of services offered by Cox to its commercial clients. (Green & Kreuter 2009)

Cox is operating in an industry in which there is intense competition but the companies are mostly unaware of their potentials. Cox is currently playing very well by offering unique services which are fully customer focused.

Technology diffusion as a core service is affecting changes which occur in today's broadband services market. Technology market is far beyond the communication aspect these days. While many markets are looking for basic services introduced, and some are facing a broadband speeds between operators 'arms race'. Local loop unbundling and network neutrality is completely changing the rules of the fixed-line operator between the competitive landscapes. Competition is more and more between mobile broadband solutions. In the high penetration of the market, operators are looking for value-added services (VAS), in order to retain customers and increase their market share.

Business Challenges

Cox Communications is faced with a wide variety of challenges while operating in U.S. broadband market. The company is serving not less than 22 states of America with a marvelous customer service experiences.

The COX Business Services has been the service provider's overall business which was very successful. Apart fro it, the department's leaders recognized that the pattern of business services market is changing. Their customers start looking to the next generation IPsolutions such as IP phones, which will change their expectations. In these circumstances, service providers are required to concentrate on new product development which meets the new expectations of customers. Cox Business Services staff have a choice: to remain in the traditional focus on access and connectivity which is becoming more and more commercialized, or embrace a full-service partner for new roles in the market with their customers, the concept of which revolves around providing organized & integrated IP voice and data solutions. (Kotler & Andreasen 2007)

The sales representatives of Cox Communications are equipped with laptops embedded in their vehicles. With emergence of technology, these laptops need up gradation so as to meet the customer needs more effectively. In order to manage this need, Cox Communications is deciding to connect these sales laptops with wireless LAN to the company's system of order management and several online applications.

Resources to Compete Internationally

The telecommunications industry is faced with intense competition within U.S. As well as around the world internationally. Cox Communications have enough resources to compete internationally. The company's adherence to customer service has created a brand reputation which will not hinder sales internationally. One of the strategies adopted by Cox was the discount offers. Cox provided upto 30% of discount to their cable customers by offering cheaper cable services. (Winett 2008)

Cox can use its infrastructure to provide discounts for broadband cable, telephone signals sent over the Internet. This process is called IPTelephony. Since most of the infrastructure is in place, Cox can break, even if as little as 9% of users signed on COX cable phone service. Cox's Internet and telephone services were less than 1% of sales from 2008, which increased to nearly 12% of the Cox sales in 2010.

Until recently, management, updating, patching and re-configure the sales team laptops were completely manual. Work Order Management System for the upgraded process is typically done once or twice a year. This requires the collection points around the country to update all the 3500 units one after another. In general, an update cycle will take two to five. IT staff varies from two to four days in the meantime, Cox's field technicians were forced to revert to manual, paper-based system. As a result, the productivity of the sales team was reduced and the overtime increased. It soon became apparent that the company must find a way to automate management of their notebook computer and the update process. (Tropman 2007)

In order to automate the processes and systems, the automation team of Cox Communications realized that there are certain hindrances in this change, which should be managed efficiently and effectively. The company's decentralized structure, a central data center and 18-nation regional facilities, presents a challenge. While the company hopes to focus on the work order system and management system, it also hopes to provide the flexibility of its regional location, deployment and configuration.

This independent management approach will enable the company to handle dynamic business needs.

In addition, although the wireless network has been developed to the point where Cox's workers, having nearly continuous coverage, the company are still facing the problem of limited bandwidth. To ensure its automatic management and update process will not interfere with its mission-critical Scheduling, Cox must adhere to the change management requirements. (Lefebvre 2008)

In order to compete internationally, Cox has focused all its resources to maximize profits and reduce costs. This has generally been done by increasing the market share from the final customer base. As a result, Cox improved its marketing strategies and tactics and increased the budget for marketing as well. There were certain strong marketing campaigns launched by Cox in order to maximize profits.

Cox's competitors have recently been in their high rate of increase in cable television subscriber base. One of the strong competitors, Charter Communications increased its clientele of cable customers by 2% in 2010. The industry average is 1%, while Cox in the year increased its clientele by only 0.5%. (Stokols 2009) The reason for this decline in clientele was the decision to reduce budget on marketing of the services provided. Due to this decision, Cox Communications faced a decline in customer base. This shows that the flow of money in Cox's bank account is enough to have a solid budget for international competition.


Providing new and innovative products will help Cox Communications to survive in the increased competitive market. At the same time, however, companies must focus on ways to reduce costs and improve profitability. To achieve these changes, Cox Communications' management team must come up with a two-pronged strategic plan. By implementing these changes, Cox Communications is expected to enter the global market very easily. The results of this strategy will force the relocation of some employees to take pay cuts or 10%, while others will be dismissed.

The increased competition has also aided in the struggles of Cox Communications, so they have the opportunity to introduce new products and services and give them more of a competitive advantage. Their competitors are providing Internet, television and telephone services to their customers. The decision of expansion by Cox Communications will provide an opportunity to reduce costs and provide better product mix. This marketing tactic can increase their competitiveness and improve profitability.

A powerful way to build organizational commitment is through the provision of job security. The threat of layoffs is one of the biggest hit, employee loyalty; even in those jobs is not immediately dangerous. Companies should provide sufficient job security, employees will feel some persistence and the relationship between employment.

A strong way to build organizational commitment is through the provision of job security. Layoffs threats are one of the greatest blows to employee loyalty, even among those whose jobs are not immediately…[continue]

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