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Comprehensive SWOT Analysis of NBC – The Big Three American Television Network

by | Case Studies | 0 comments

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 NBC.

The National Broadcasting Company – NBC is an American television and radio network broadcaster in the English language. It is the flagship property owned by Comcast. The stylistic peacock logo of NBC helps the company to promote its innovation in early colour broadcasting which was introduced in 1956.

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 NBC, but before that let’s know about the company.

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About NBC

SWOT Analysis of NBC - NBC Control

Founded in 1926, NBC is the oldest broadcasting company and network provider in the United States. Its headquarters are located in New York City. The company also holds the position of the traditional “Big Three” American television network. 

Till now it operates more than 13 owned and operated stations and approximately 200 affiliates all over the United States. Some of which are also available in Canada, Mexico, South Korea & Germany. It started as a radio network slowly incorporated into the major providers of television networks, thanks to its merger with its parent company Comcast.

Quick Stats on NBC
Founder David Sarnoff
Year Founded 1926
Origin United States
No. of Employees 50,000+
Company Type Public
Market Cap $1.518 Billion (2021)
Annual Revenue $10.85 Billion (2020)
Net Income/ Profit N/A

 

SWOT Analysis of NBC - NBC News


Products & Services by NBC

  • Radio
  • Television
  • Television Programs 
  • Paid Subscription
  • Network


Competitors of NBC

  • CNN
  • Grasswire
  • KompasTV
  • AAJ NEWS

Now that we understand the company, let’s dig into the SWOT analysis of NBC.


SWOT Analysis of NBC

SWOT analysis is a simple tool that can help you analyse what your company is doing better now and then plan for a successful future. SWOT can also expose business areas that delay you, which your competitors can take advantage of and may exploit you if you do not protect them.

To better understand the SWOT analysis of NBC, refer to the infographics image below.

SWOT Analysis of NBC - SWOT Infographics of NBC

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

Strengths of NBC

A company’s strength is a competitive advantage that allows a company to win, generate value and gain efficiency. NBC’s strengths are as follow:

  • Enormous Stations: The network has a national reach of 88.91% of all households in the United States. NBC has 12 owned and operated stations and is currently pending affiliation agreements with 223 additional television stations encompassing 50 states.
  • International Broadcasting: NBC broadcasts its shows and programs in almost every nation on the globe. Its English shows, news, kids programs, and video on-demand services are famous among people.
  • Strong Cash Flow: As NBC 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 NBC entertainment and NBC news.
  • Good Returns on Capital Expenditure: NBC 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 NBC 

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 NBC:

  • 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: NBC is compatible with the current business model and so that it has some limits with the expansion of the segments. Time Warner suggested that NBC 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 NBC 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 broadcasting network
  • Age Group: Their target group is mostly adults, the age category between 15-35 years. The viewers of overreliance on NBC entertainment are down by 6%. Because they are over-reliant on reality shows.


Opportunities for NBC

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 NBC:

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

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 NBC:

  • Strong Competition: One of the biggest threats of the international mass media company, NBC 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.
  • Criticism & Controversies: The NBC television network has been charged for tolerating a culture of sexism and sexual harassment among its employees and also of protecting up blunders committed by major figures in the company through force campaigns against victims that have widespread use of non-disclosure agreements.
  • Currency Fluctuations: As an international mass media company, NBC 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 NBC. 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.

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To Conclude

In the study of the SWOT Analysis of NBC, we have known that it is one of the most-watched TV networks 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 NBC. 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 NBC has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of NBC, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of NBC in the comments section below.

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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