Several cable TV companies have experienced lower or negative growth rates as customers have increasingly cancelled their cable subscription or “cut the cord.” At the same time, streaming video services, such as Netflix, YouTube and others, have experienced rapid growth. A 5-Forces analysis of the cable TV industry shows that the problems being faced by cable TV providers are due primarily to which of the following?
Group of answer choices
Strengthening Industry Rivalry
A stronger Threat of New Entrants
A stronger Threat of Substitute Products
Weaker Bargaining Power of Suppliers
Stronger Bargaining Power of Suppliers
Option C - A stronger Threat of Substitute Products
A substitute product uses a different technology to try to solve the same economic need. Examples of substitutes are meat and fish; landlines and cellular telephones; beer and wine; and so on. For example, tap water is a substitute for Coke, but Pepsi is a product that uses the same technology (albeit different ingredients) to compete head-to-head with Coke, so it is not a substitute.
Similarly, for a Cable TV operator a competitor will be Dish Antenna suppliers such as - Airtel TV and Tata Sky. But its substitutes are Netflix and Youtube, which are the reason for the problems being faced by cable TV providers. This means that instead of watching normal TV programs on the cable, customers have changed their preferences to streaming video services.
Several cable TV companies have experienced lower or negative growth rates as customers have increasingly cancelled...
Read the case: Netflix Inc.: The Second Act - Moving into Streaming and complete your case analysis. Discuss the following: 1) briefly summarize the key marketing strategy issues in the case that are still relevant TODAY in addition to contemporary issues you find via research; 2) make thorough recommendations on how the issues should be handled; 3) provide a justification for the recommendations. Case write-ups should be 3-5 pages, double spaced, 12 font size in Times New Roman. The case...