Dish Networks SWOT Analysis Parrilla

Dish Networks SWOT Analysis Parrilla Cynthia_303SWOT DISH Networks DISH Networks was founded in 1980 and in 1987 was awarded their first Direct Broadcast Satellite (DBS) license with the Federal Communications Commission. During the first years of the company's existence the focus was on regional satellite dish operations. In 1992 DISH was awarded orbital slot at 119° west Longitude which gave the company the ability to be globally-focused in terms of broadcasting. Despite this potential global coverage the company chose to and continues to dominate only in the U.S.

In 1994 DISH built is first Network Uplink Center in Cheyenne, Wyoming. In 1995 the company began providing DBS service with the launch of their EchoStar I, satellite. Also in 1995 the company offered an initial public offering (IPO) and also established the DISH Network brand name. Subsequent to the company's successful IPO there have been over two down partnerships with entertainment content providers including HBO, Showtime, NBC Universal, and many others in addition to support for local channels in the top 100 markets, achieved by 2003.

Also in 2003 DISH entered into a strategic alliance with EchoStar, which expires on January 1, 2010 for the company's digital set top boxes and related services. During the 2003-2004 timeframe the company also formed a long-term agreement with Viacom to offer CBS, MTV, and other channels. During July, 2008 DISH also became the first company in the industry to offer high definition programming in 1080p, the highest HD resolution available. The next month DISH offered all standard and high definition programming in MPEG-4 Advanced Video Coding Standard.

DISH signed an agreement with Sony Pictures Television to carry the studio's movies and other programming content on its Video on Demand platform in September of last year, relying on DISH on Demand as the platform for accomplishing this. Section II: Analysis of Strengths and Weaknesses The three most dominant strengths of DISH Network Corporation are its sustainable, strong market position, pricing strategies that are profitable and competitive, and MPEG-4 Service that the company is pioneering in the industry.

Each of these strengths combines to provide DISH with a long-term defensible competitive advantage over the long-term. The first strength that of DISH having a sustainable, strong market position is attributable to the company's ability to attain the third largest subscriber base in the U.S. with approximately 13.7 million subscribers as of 2008. DISH further sustains its market position by being a single source of equipment distribution, installation, sales, and service. DISH also offers 2,700 video and audio channels in the domestic U.S.

And is expanded into High Definition (HD) TV content as well. Foundational to the company's strength has been their ability to successfully transition for establishing their business in targeted rural markets, transitioning to key metro markets over time. The combining of all these factors is responsible for the company's sustainable, strong market position. The second major strength of DISH is the profitability and competitiveness of their pricing strategies. DISH specifically focuses on structural pricing to motivate customers to migrate from cable TV subscribership to DISH Broadcasting Services (DBS).

One example of the many pricing strategies that provide exceptional value to consumers is the "America's Top 100" package in many areas of the country for $32.99 per month. This package includes over 100 different video and audio channels, which typically would cost well over $50 from regionalized competitors. Based on the success of this program, DISH also began offering Top 200 Package, offered at $44.99 per month, which included basic cable, 200 digital video and audio channels that would typically cost well over $60 per month from competitors.

The ability of DISH to continually bundle new services that are sports-oriented in addition to offering price-competitive services has emerged as a signification differentiator and core competency for the company (Solman, 2006). The third major strength of DISH networks is their pioneering work in the area of providing MPEG-4 Service. Beginning in August, 2008 the company initiated offering MPEG-4 programming as part of its TurboHD Service. MPEG-4 is considered the best possible format or resolution for high definition television broadcasting.

The technological advancements in MPEG-4 programming has emerged as a competitive advantage for the company, giving them a lead technologically against TiVo Services (Wildstrom, 2007). The three major weaknesses of DISH Network Corporation are the Operations being too concentrated in specific areas, programming content is often difficult to access, and the subscriber base is dwindling through churn and attrition. For each of these specific weaknesses, strategies of minimizing them are provided.

The fact that DISH Network's Operations are too concentrated in specific areas of the global market, with 99% of revenues concentrated in the U.S. market alone. These places the company at significant risk to the costs of labor, raw materials, access rights and operating expenses by not operating in multiple geographies. To alleviate this risk, DISH would need to successfully launch into entirely new markets, including Europe, Asia and the Middle East.

A second weakness of the company is that the programming relied on for operating the service is difficult to access compared to competitors including DirectTV (Grover, 2008). As their primary competitor, DirecTV is partially owned (38.4%) by News Corporation, this makes the ability to gain access to regional sports broadcasting in Denver, Pittsburgh and Seattle difficult to attain. In February, 2008 DISH Networks completed a licensing agreement with News Corporation to gain access to these regional events and permission.