CBS Outdoor Americas: External and Internal Environment Analysis
This paper examines the external and internal environments of CBS Outdoor Americas Inc. (NYSE: CBSO), a leading Out-of-Home (OOH) advertising company operating across the United States, Canada, and Latin America. The analysis covers the general environmental segments most influential to the firm — specifically the technological and sociocultural segments — and applies Porter's Five Forces framework to identify the two most significant competitive forces: rivalry among competing firms and the threat of substitute products. The paper also evaluates strategic moves CBS Outdoor has made or could make to address threats and opportunities, including acquisitions, digital innovation, and support for small-to-medium advertisers. Strengths, weaknesses, resources, core competencies, and value chain considerations round out the analysis.
- Company Overview: CBS Outdoor Americas: CBS Outdoor's IPO, offerings, and market reach
- Influential General Environment Segments: Technological and sociocultural segments most influential
- The Most Relevant Forces of Competition: Rivalry among firms and threat of substitutes
- Strategy Regarding Competitor Rivalry and Threats of Substitute Products: Digital innovation and awards deter competition
- Strategic Moves to Address Threats and Opportunities: Internet threats and SME advertiser opportunities
- Resources, Capabilities, and Core Competencies: Locator tools, diversified OOH media, financials
- Value Chain Analysis: Value creation through R&D and design excellence
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What makes this paper effective
- Grounds abstract strategic frameworks in concrete, real-world examples — such as the Mercer University digital billboard campaign and the Peapod virtual grocery store initiative — making the analysis vivid and credible.
- Systematically applies Porter's Five Forces and general environment segment analysis to a specific company, demonstrating how theoretical tools translate into practical business insight.
- Balances internal strengths (recycling initiatives, digital capabilities, creative services) against genuine weaknesses (digital billboard safety concerns), avoiding one-sided advocacy.
Key academic technique demonstrated
The paper exemplifies applied strategic analysis: it selects the most relevant subset of a standard framework (two of five Porter's forces; two of six general environment segments) and justifies those choices, rather than cataloguing all elements superficially. This selectivity signals analytical judgment — a hallmark of strong business school writing at the undergraduate level.
Structure breakdown
The paper opens with a company profile, then works outward to macro-environmental forces before narrowing to competitive dynamics via Porter's Five Forces. A strategy section follows, linking analysis to recommended actions. The paper closes with an internal audit — resources, competencies, and value chain — moving from external context to internal capability, a logical sequence that mirrors standard strategic management frameworks.
Company Overview: CBS Outdoor Americas
CBS Outdoor Americas Inc. (NYSE: CBSO) leases advertising space in the category known as Out-of-Home (OOH) advertising throughout the United States, Canada, and Latin America (Ross Sorkin, 2014). CBS Outdoor went public in April 2014 and separated from CBS Corporation (NYSE: CBS.A and CBS) — the broadcaster and owner of Showtime — as the final step following its initial public offering (IPO) (Ross Sorkin, 2014). Shares of CBS Outdoor rose 18% since the IPO in March 2014 (Ross Sorkin, 2014).
CBS Outdoor offers a range of outdoor advertising options designed to target somewhat different markets: billboards, bus and railroad media, mobile billboards, specialty advertising signs, sports media, street furniture, and walls (Ross Sorkin, 2014). A specialty of CBS Outdoor is an extensive multimedia digital inventory across many of these markets, along with highly sophisticated mobile interactive capabilities that extend to all of its Out-of-Home media offerings (Ross Sorkin, 2014). The market reach of CBS Outdoor is wide, with displays in all 25 of the largest U.S. markets and in 180 other national and regional markets, including heavily trafficked locations (Ross Sorkin, 2014). Consider the Bay Bridge in San Francisco, Sunset Boulevard in Los Angeles, and Grand Central Station and Times Square in New York City — CBS Outdoor maintains a strong media presence in each of these locations (Ross Sorkin, 2014).
Influential General Environment Segments
The dimensions of the broader society that influence industries and the firms active within them are referred to as the general environmental segments. These segments include the demographic, economic, global, political/legal, sociocultural, and technological segments. The two segments of the general environment most likely to have the most substantive influence on CBS Outdoor Americas are the sociocultural segment and the technological segment.
The potential for the technological segment to influence the growth of CBS Outdoor Americas is readily apparent. Digital outdoor media is the most rapidly growing of the Out-of-Home advertising categories, and CBS Outdoor offers digital outdoor media in both full-motion and static formats. The current and future emphasis on digital media is a major factor in the company's business offerings and business plan. The sociocultural segment will also play a major role in shaping Out-of-Home advertising. All advertising formats are strongly linked to sociocultural changes and must unequivocally represent contemporary thought and cultural trends.
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