DirecTV Company Analysis

Introduction: Overview of DirecTV

DirecTV is an American company whose mandate is in the provision of direct broadcast satellite services as well as a broadcaster. It was established in 1994 and is based in El Segundo, California (Fuchs, 2003). The company was first on NASDAQ, and one of the first American satellite companies to achieve such accolades. However, this was not to last as it was scrapped from the listing in the year 2002, compelling it to go back to private operations. It was later in the year 2000 that the company was again listed and achieved a shareholder position, this time in New York Financial Market (DirecTV 2011). Since then the company has climbed the ladder in both limps and bounds.

In the year 2009, the company is stated to have employed 8,100 employees across 82 in Latin America and the United States different countries. This was to respond to global personnel diversification. By the same year, the company is estimated to have served a customer base of over 50, 000 companies around the world, particularly in America, Latin America, and the Anglophone Caribbean (Direct TV Presentation 2009). Direct TV has been duly involved and streamlined within its corporate social responsibility programs and initiatives (Direct TV 2010). While it had had competitors such as Dish Network and Cable Television providers, the company with many branches, has been enabled sufficiently to look through its activities. It is also considered one of the largest providers of television and audio services through satellite transmissions (Frack, 2006). On the whole, because its subscribers can access many different channels, its main competitors are predominantly television service providers and satellite-based companies (Fuchs, 2003).

Internal and External Company Analysis: Silent and Shadow Accounts Analysis of DirecTV (Overview)

The use of silent and shadow accounts is now regarded as one of the most balanced ways to find objective analysis of any company. They are seen as a modest contribution to the holistic process of facilitating companies like Direct TV to design their measures and evaluative guidelines (Pan, 2001). Whereas Silent Account zeroes on analysis/outlook provided by a company itself, Public/ Shadow Account focuses on analysis and evaluations which have been provided with external audit companies and independent scholars/ professionals (Pan, 2001)

To understand both the silent and Public/ Shadow Account and Silent Account Analysis of DirecTV within the confluence of its stock performance, business market penetration, corporate and social penetration, roles and product development strategies as well as holistic corporate social responsibility activities and business stories are examined in this paper. The focus in further on the company’s in terms of in-depth analysis of the external environment—be it on health issues, demographics, human empowerment, work culture, services, or market and operational situations In the end the paper provides a concluding analysis that surrounds Company Analysis of firms such as DirecTV(Fuchs, 2003).

Silent and Shadow Accounts of DirecTV

Broadly, the company’s corporate social responsibility is anchored on people, relationships with its customers, service provision, creativity, and empowerment, be it for the staff or community. For the people, the company motto seems to be tailored around the belief that it is noble to exploit people’s potential and be acquainted with this as the epicenter of activities and its investments plans across the countries of operation and placing the community as a beneficiary of its programs (DirecTV, 2011). Wilkerson (2003) observes that Direct TV has contributed immensely to human empowerment and civilization. These have been predominantly in the areas of Education, Governance, Gender inclusiveness in development, infrastructure, water, and sanitation, as well in finance and private sector. At the core of its business, Wilkerson (2003) notes that Direct TV is characterized by a ”non-hierarchical, non-bureaucratic, encouraging, technological and entrepreneurial environment.’’ As a result of flexible cultural orientation, the company has been a magnet to the youth, with a commanding percentage of its employees who are under 29 years of age standing at 29 per cent. To this end its culture is further compounded by offering training, upgrading and exposing the employees to international best practices by offering opportunities for international training and satellite and Television Services technology (Frack, 2006).

The company is thus first and foremost also well-grounded in Leadership in social responsibility, technological development and sustainability (DirecTV, 2010). Wilkerson (2003) affirms that Direct TV is one of the Satellite companies that first curved for itself a name for leadership in social responsibility characterised with sustainability and technological development. It came first in making public sentiments regarding sustainability and crafting plans to mitigate the plight of the marginalised communities particularly in Latin America and in the United States. In the recent past, DirecTV has brought to the fore, new lines of remotes to accompany the new receivers. According to Sims (2003), these include Big Button Remote, which is an enlarged standard universal remote to ease and simplify usage. The other is the universal RF Remote RC64RB which is the same as the Universal Remote but complicated with RF function to permit control of systems through walls. Besides is the NFL Remote, which is a limited-edition RF enabled universal remote that has numerous designs and brands for a specific NFL team. Other than Direct TV has had to fundraise and contribute resources through social mobilization investment endeavours that would then be used in several community projects. These included construction or renovation/upgrading of nurseries, health facilities, schools, post offices and the start scholarship aimed at helping needy and bright students in America and other countries such as Jamaica (Frack, 2006).

Related to this, Direct TV is involved in pushing various governments across the world to conform to democracy and push for education for all (DirecTV, 2011). As the most prominent pay-television in Latin America, the company is involved in community empowerment through innovation and technology (DirecTV Website 2011). It does this through several ways including programs such as Generacion DIRECTVTM which is involved in disaster management and relief services, education and outreach initiatives. Specifically, the program focuses on the use of technology, its services and marketing strategies to promote social change in the regions marginalised areas. With this, it benefits communities, customers and its employees (Lee, 2003). As a result, the opportunities for DirecTV Company are many regarding educational social endeavours. For example, the organization now enjoys positive media coverage, an insurmountable boost in its image accruing from its trading skills, as well the corporate responsibilities it is involved in especially in offering scholarships and getting involved in community partnership programs. Daft further notes that it is additionally involved in pushing various governments across the world to conform to democracy and push for education for all, including in Venezuela. This is important since several multinational corporations are involved in it. These arguments are reinforced by Fazal (2005) who contend Transnational Corporations (TNCs) such as DirecTV; offering to put in and invest in some countries, forces the governments of such countries to give into to their conditional ties by initiating measures that they feel would benefit communities.

It continues and has often purposed to invest in people—whether in its staff or communities it engages with. Further, it believes in the culture of teamwork. The company recognises the role of its employees by empowering them in making decisions due to its decentralised organisational configuration (DirecTV 2011).

DirecTV “considers its customers to be the company’s partners and has therefore embarked on creating mutual benefit over the years and innovative solutions that meet the clients emerging needs” (DirecTV, 2011). Indeed, the company programs are tailored around clientele, that is, the satisfaction of customers needs. Wilkerson (2003) associates this to the company’s design of budgets in a bottom-up framework, a method by which managers are assessed on the degree to which they meet the standardized benchmarks that they set for themselves. Arguably this extent of independence has often allowed for better decision making which is based on service to the customer.

Further, even the station managers in various countries are themselves allowed a greater degree of autonomy in the process of meeting their goals to meet customers’ needs. This sort of ‘local autonomy’ has enabled the organization to, over the years, provides services that few multinationals if not one, has ever considered offering. One of the illustrations that best anchor this assertion is when the company purveyed and came up with the program Accion Generacion which is a humanitarian initiative aiming to offer relief services to those affected by natural disasters such as floods and give them hope. This program is funded by a budget that is retained for use as planned. This means that when donations are increased, relief efforts are multi-plied if not duplicated (Lee, 2003). Beyond this, it has a succinct model of business which entails corporation with other companies. This includes not only other satellite service providers but the airline’s industries as well. The airlines, usually on ‘high-density routes’, help in supplying the company’s gadgets (DirecTV, 2011). Indeed, DirecTV seems to be on top of its game since its activities seem client-centred. The logistical and transport arrangement relating to its services and products is at par. It has often demonstrated quick response to clients when their deliveries become delayed or a possibility of a customer attendant not being able to fix things in time (DirecTV, 2010). Besides, the organisational organ gram in the pecking order is clear and so the flow of information to the right people is promptly facilitated for action (Price 2007). Price notes that it usually plans its operations, service provision programs or failure thereof, well in advance and appropriately communicates that to the respective customers. Beyond this, the company has incredible risk management plans as far as client needs responsiveness is concerned. It embodies what is commonly referred to as “outside the box thinking” in its risk management (Lee, 2003). This entails the scheme of preventing/minimising service provision failure and channelling appropriate mechanisms to deal with any delay (Daft, 2008).

Environmentally, DirecTV Social responsibility is to be found in several areas. Through its Eco DIRECTV, it is involved in the provision of acceptable strategies for environmental preservation. The initiative entails the implementation of educational projects for its workers including a collection of used materials for recycling and conducting fundraising programs that this end. It has also in the same spirit taken a switch using gas which is unleaded besides changing every one of its express pouches to materials that can be recycled or are biodegradable. Regardless of the hefty cost of this initiative, the company’s drive has been anchored on the long term effect of such an engagement. Indeed Direct TV is involved in several environmental conservation activities, whether they are costly or not (DirecTV, 2010).

The company review mechanism is also encouraging. It is grounded on the quality of service provision with a great pinch of excellence, at times uncompromised (DIRECTV 2010). Due to this, the company assesses its performance on regular basis. It also looks for new ways in which it can improve the quality of its services. Further, the company’s norm is pegged on creativity and innovativeness. Because of this, it cares a lot for the development and appreciation of entrepreneurship and the creativity of its clientele. It does this by scrutinizing emerging bottlenecks and examining the opportunities that can accrue from them. In the end, it can develop a tradition of adopting the different dynamics within the local and global environment. DIRECTV internet presence for example is a factor that makes it more anchored as a believer in corporate social responsibility with its clients. It has an elaborative website (DirecTV, 2010). The company has to have an online presence; Amerax has changed with the technological changes in the region. Because internet usage has increased over the years in its country of operations, people have also increasingly taken on purchasing items online. The bottleneck, however, is that several online retailers were initially reluctant in offering satellite services outside Europe and the United States, a state of affairs which DirecTV endeavoured to mitigate by starting up a service called Online shop and ship services. This has since been expanded to Eastern Europe. An audit report by information A Gatekeepers Limited edited by pan (2001) recognises the ability of the company in cyberspace marketing and the advantages that this portends. He profoundly asserts that:

‘’By using DIRECTV WAP-enabled services, customers have been provided with access to information and services through any WAP-enabled mobile phone or device” (Pan, 2001)

According to Pan (2001), this device placed Direct TV on high technological advancement and created a marketing reputation. This is because the WAP services are designed in a manner that is not only user friendly but it also formatted to accept customers inquisitions and placements. This is the long run has meant that the existing and potential customers have access to their satellite services detailed on the website, thus enabling them to easily and conveniently track information surrounding the services. However, one of the weaknesses within its website is that prices are not stably outlined to enable customers to know about the pricing in advance (Price 2007). Regardless of this, it is reported that its client oriented website attracts several visitors (Hodel, 2011).

DirecTV Stock Performance Overview

According to information on the Morningstar website, DirecTV has consistently been taking a share in United States’ television business. In the more recent past, it has hit the same market by use of the NFL Sunday Ticket arena to attract customers (Hodel, 2011). On the contrary, however, the margins have experienced much pressure because of the continued expense cost that has been increasing more than profit. There is a high likelihood that this will remain steadiest even in the nearest future, predominantly because of the options that consumers continue to have with saturated Television Service expansion. Moreover, the company’s operation in Latin America has had to come up with an improvement strategy to enjoy the regions market share in the face of competition (Deustsch, 2004). However, its strength in the United States is likely to go down. This might call for an in-depth strategic formulation. Indeed, Bakan (2004) believes that strategy formulation is a key component of organisational entrepreneurship which entails “the development of business mission, decisions—both long term and short term objectives, and prioritizing strategies to pursue” (Karami, 2003). Dana (2004) notes that it is associated with deciding which resource is for what and in what amount, deciding on diversifications, and the process of entering the international market arena or issues such as merging with suppliers or sale agencies as well as a corporation with communities in supporting their cause to diversify and create a moral customer base.

Company’s Risk Analysis

The company has had several scandals tailored around its programming disputes. For instance, in the year 2009, the company ran an infomercial that it was dropping Versus in September if there would be no ‘carriage agreement’ with Comcast. It did this. Many analysts then applauded the company for having taken a good risk management strategy, which entails news sets of law, regulations as well as stock listing standards. Calls have thus been made to consolidate corporate governance and risk management strategies in DirecTV. These have further been compounded by the advancement of information technology and its seemingly inevitable evolution which has continued to complicate how businesses compete in the business environment. Cheney (2006) argues that risk management in Direct TV entails several interrelated activities which if well-integrated lead to the attainment of company goals. These goals are outlined in the company mission and vision of the company. According to him, Enterprise Risk Management, especially the Integrated Framework, is inherently, therefore, one model which seems to fit squarely into a number of the needs aforementioned in DirecTV. It is seen as a method that will further attract the company’s acceptance across many business boards. This is more because the model is so swift in internal control, thus enabling aggressive re-look into the broader issue of enterprise risk management. No wonder companies are considering it not just as a way of incorporating the in-company control framework, and not necessarily replacing the framework itself (Deustsch, 2004).

Conclusion

The strategy, the current situation both in the corporate world, market share, risks and stock market performance exposed by both the silent and public account of DirecTV gives a sound view analysis of DirecTV. It is market penetration and product development strategy/model/theoretical framework. Market strategy/ awareness creation functions to facilitate the expansion of its business engagements across the world and attraction of much more customers especially when the right products are developed, and services executed. This will enhance its moral base, and ultimately increase its visibility, thereby increasing revenue.

References

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