In our previous article, we had done an in-depth SWOT Analysis of the market leader of Malaysian Cellular Networks, Digi. In this article, we will see the SWOT analysis of CBS.
The second incarnation of CBS Corporation (the first being a short-lived rename of the Westinghouse Electric Corporation) was an American multinational media conglomerate with interests primarily in commercial broadcasting, publishing, and television production.
The company is a market leader all around the world due to its efficient services and strong visibility. In today’s world digital marketing is very important to create a brand image, if you want to learn more about digital marketing and its different attributes do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
In this blog, we will learn about the SWOT analysis of CBS, but before that let’s know about the company.
The first incarnation of Viacom was created in 1952 as the television syndication division of CBS and was spun off in 1971. However, in 1999, Viacom acquired its former parent, by this time also named CBS Corporation, formerly Westinghouse Electric. The prior CBS Corporation also owned CMT and The Nashville Network, which remained Viacom properties after the 2005 split, but the prior CBS did not own UPN, Showtime, Paramount Television, Paramount Parks, or Simon & Schuster.
The second incarnation of CBS Corporation (the first being a short-lived rename of the Westinghouse Electric Corporation) was an American multinational media conglomerate with interests primarily in commercial broadcasting, publishing, and television production. It was one of the two companies formed from the 2006 spin-off of the Viacom assets of the original Viacom. The spin-off was structured so that CBS Corporation would be the legal successor to the first Viacom, with the second Viacom being an entirely separated company.
CBS Corporation comprised the over-the-air television (CBS and The CW) broadcasting, television production and distribution, publishing, pay-cable, and recording assets that were previously owned by the first Viacom. It was the world’s fourth-largest entertainment company in terms of revenue and headquartered at the CBS Building in Midtown Manhattan, New York City.
|No. of Employees||12,700+|
|Market Cap||US$ 22.63 Billion (2021)|
|Annual Revenue||US$ 14.514 Billion (2018)|
|Net Income/ Profit||US$ 1.960 Billion (2018)|
Products of CBS
- Movie production
- TV production
- Cable television
- Record label
Competitors of CBS
- Warner Media
- The Walt Disney Company
- AMC Networks
- Discovery and Fox
Now that we got to know about the company’s function and their vast business globally, now let’s dig into the SWOT analysis of CBS.
SWOT Analysis of CBS
SWOT Analysis is a useful technique for developing business strategies for both new and current businesses. This simplified methodology is used to assess a company’s competitive standing. SWOT analysis of CBS can help the organization develop effective and efficient business strategies.
Below is an explicit guide to the SWOT analysis of CBS.
Strengths of CBS
A company’s different capabilities that allow and give the advantage to capture more markets and make profits are called strengths. The following are the strength of CBS:
- Innovative Broadcasting: CBS encompasses providing broadcasting of variety of perspective, viewpoints, and background so that it can deliver a pleasant viewing experience to its national viewing audience.
- Popular TV Programs: CBS is famous for its most popular programs and TV shows including its all-time famous sitcoms which have a true audience on a global scale.
- International Market: CBS is a global film and television production company. One of the strengths of CBS is that it has an international market. Because of its international presence, it makes it easier for the other CBS to grow their business.
- Strong Cash Flow: CBS is a multinational company. It has a huge international presence so they have a huge cash flow. Their revenue is in the billions. They have a good amount of profit. Due to the strong cash flow, they have sufficient resources so that they can expand their business.
- Strong Distribution of Network: As a successful international company, they have many companies that are a huge market for the divisions. They have a strong network of distribution that helps the company CBS.
- Good Returns on Capital Expenditure: CBS has a successful track record and builds reliable trust among international consumers. They also have a successful record of merging and acquisition of big firms.
Weaknesses of CBS
The area where the brand or company needs an improvement or there is a chance to improve and make it big and help the company to grow faster by finding out the incapabilities and weak points are referred to as weaknesses. Following are some of the weaknesses of CBS:
- Changing Trends: As an international film and television production company, they have to change according to the local market. they have to tackle the care of local consumer behaviour.
- Organization Structure: CBS is compatible with the current business model and so it has some limits with the expansion of the segments.
- Age Group: Their target group is mostly adults, the age category between 18-30 years. The viewers of overreliance on CBS entertainment are down by 6%. Because they are over-reliant on reality shows.
Opportunities for CBS
Opportunities means the aspects of the ground where brands can have the avenue that surrounds the environment to grow and make more profit or returns. Following are some of the opportunities for CBS:
- New Market: There is a great opportunity for CBS as there is the availability of new markets opening up. The world is going under globalization and many governments are adopting new technologies. Due to the government agreement as there is free trade that gives new opportunities to CBS.
- Growing Economy: One of the great opportunities for CBS is the growing economy. There is a rising economy that brings the international film and television production company CBS with new customers. They can gain new customers with a good strategy. They have captured three separate businesses as a result they have a huge broadcast in countries like India.
- International Growth: As a multinational film and television production company, CBS is constantly looking for a new market to grow internationally. They have a huge stake in India and Latin America.
- Consolidation: Over the years they have established many companies such as CBS television and home shopping network. For the growing business, they have to arrange funds they need for support for the operations and shareholders friendly initiatives and the company mainly depends upon acquisitions and merging.
Threats to CBS
Threats referred to the factor in the environment of the business that put a hurdle to the brand to grow. It slows down the growth of the business. Following are some of the threats for CBS:
- Strong Competition: One of the biggest threats of the international film and television production company, CBS is the strong competitor. One of the biggest competitors is 20th Century Fo. 20th Century Fox has huge popularity and is the biggest movie production platform.
- Small Production Houses: One of the biggest threats to the oldest film and television production company is the evolving small film production houses on OTT platforms. Due to current situations, many users are preferring watching movies on OTT platforms over going to the cinema.
- Currency Fluctuations: As an international film and television production company, CBS has to consider the fluctuations in the currency of different countries.
- Changes in the Policies: They have an international market, if the government changes its policies they have to change it according to the respective country’s lawsuit.
With this, we have reached the end of the SWOT Analysis of CBS. This analysis helps the company to know where it stands in the market and understand its weaknesses and create proper strategies to improve in the future.
In the study of the SWOT Analysis of CBS, we have known that movies produced by CBS are the most-watched in the world. It has a large international presence and cash flow. It can grow with the help of new markets and consolidation. Even after it has such advantages in the market it still faces some flaws.
Changing trends and mostly dependent on advertising are some of the weaknesses of CBS. It can also face a threat in the future from the strong competition and changes in policies in different markets. As most people have shifted towards digital platforms, the most important thing that it needs is a digital marketing and having an online presence. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT Analysis of CBS has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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