Extensive SWOT Analysis of HBO – An American Based Cable and Satellite Television Business

Products & Services by HBO

• Cable Tv
• Television Programs 
• Satellite
• OTT Platform 
• Paid Subscription
• Network

Competitors of HBO

• Netflix
• Hulu
• AMC Networks
• Starz

SWOT Analysis of HBO

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 HBO can help the organization develop effective and efficient business strategies.

Below is an explicit guide to the SWOT analysis of HBO.

Strengths of HBO

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 HBO:

• International Market: HBO is a global mass media company. One of the strengths of HBO is that it has an international market. Because of its international presence, it makes it easier for the other HBO companies to grow their business.
• Strong Cash Flow: As HBO 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 and 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 such as HBO entertainment and HBO news. 
• Good Returns on Capital Expenditure: HBO 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 HBO 

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 HBO:

• Changing Trends: As an international mass media company, they have to change according to the local market. they have to tackle the care of local consumer behaviour.
• Organization Structure: HBO is compatible with the current business model and so that it has some limits with the expansion of the segments. Time Warner suggested that HBO has failed to gain strong footprints in space. As compared to the competitors they have high inventory so they have to invest more capital in the firm and ]the longer run, it can affect the company. 
• Mostly Dependent on Advertising: One of the weaknesses of HBO mostly depends upon the advertising, affiliate, and subscription fee, which gained almost 70%of the total business as per the 2014 report. They can be improved by growing and developing a large and broadcasting network
• Age Group: Their target group is mostly adults, the age category between 15-35 years. The viewers of overreliance on HBO entertainment are down by 6%. Because they are over-reliant on reality shows.

Opportunities for HBO

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 HBO:

• New Market: There is a great opportunity for HBO 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 HBO. 
• Growing Economy: One of the great opportunities for HBO is the growing economy. There is a rising economy that brings the international mass media company HBO 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 mass media company, HBO 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 HBO entertainment and HBO news. 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 HBO

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 HBO:

• Strong Competition: One of the biggest threats of the international mass media company, HBO is the strong competitor. One of the biggest competitors is Netflix. As Netflix has huge popularity and is the biggest streaming platform and it is also user-friendly and consumers prefer the platform. 
• Online Platform: One of the biggest threats to the broadcasting television company is the online platform. As many users are preferring online platforms over television.
• Currency Fluctuations: As an international mass media company, HBO 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 HBO. 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.