In our previous blog, we did an explicit SWOT Analysis of the 8th largest telecommunications company in the World, Movistar. Here we will understand the SWOT Analysis of Spectrum.
A trade name of Charter Communication – Spectrum is a telecommunication and mass media company. It is the largest broadband communication company in the United States. The company is known for providing advanced broadband services video entertainment programming and spectrum TV. Currently, spectrum is serving over 31 million customers in 41 states. It is the second-largest cable operator in the U.S.
It has been unsuccessful to hold its position in the industry. It can still try to improve its standings in the global market with the use of the latest digital marketing techniques. Most people have entered the digital world and thus it is easy for any company to find its target audience in the market.
Thus every business needs to implement digital marketing. If you are anxious about learning what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
In this case study, we will learn about the SWOT Analysis of Spectrum. But first, let us know about the company and the product better.
About Spectrum
(Source: Bloomberg)
Spectrum is a telecommunication company that was formed in the year 2014. It serves as a brand for Charter Communications. It has its headquarters situated in the United States.
Spectrum is a multinational telecommunications services provider. It currently operates in about 41 states of the United States. It is the 2nd largest mobile network operator in the US and has a customer base of about 31 million. The various products that the company offers are broadband, cable television, digital cable, digital telephone, internet, HDTV and many more.
Spectrum is one of the internet hubs in the United States and provides fair connectivity to the other telecommunications operators in its specified locations.
| Founder | Charter Communications |
|---|---|
| Year Founded | 2014 |
| Origin | United States |
| No. of Employees | 98,000+ |
| Company Type | Public |
| Market Cap | $ 120.197 Billion (2021) |
| Annual Revenue | $ 48.097 Billion (2020) |
| Net Income/ Profit | $ 3.222 Billion (2020) |
Products & Services by Spectrum
- Broadband
- Cable television
- Digital cable
- Digital telephone
- Internet
- HDTV
- Home & Internet Security
- Mobile Phone
Competitors of Spectrum
- T-Mobile
- Cox Media Group
- Comcast
- Frontier Communications
- Verizon
As now we have a better understanding of Spectrum, let’s look into the SWOT Analysis of Spectrum.
SWOT Analysis of Spectrum
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 Spectrum can help the organization develop effective and efficient business strategies.
Below is an explicit guide to the SWOT analysis of Spectrum.
Strengths of Spectrum
- Highly Skilled Workforce: Spectrum has a highly acquainted workforce. The company provides resourceful training to workers that keep them motivated to work towards goals.
- Regional Presence: The major strength of the company is its regional presence in several places. It determines the company’s reach to the target market and guarantees that the information is easily accessible.
- Intellectual Property Rights: Different intellectual property rights may be owned by an organization, making its product offers distinctive and exclusive and making it difficult for competitors to copy.
Weaknesses of Spectrum
- Debt, Unhurried, Marginal Decline: The charter company has got bankrupted in past. The company will use its profits for reducing debt and loans which will further apply pressure on companies margins.
- Low Ratio: By looking at companies current ratio the company is unable to meet the short term finance, it is lower than industries criteria which can lead to the liquidity of the company.
- Goodwill & Reputation: Spectrum company has the worst goodwill and reputation in the market because of its poor products and services.
- Bad Customer Service: Spectrum company has a bad relationship with its customers. They might respond to the feedback of the customer on social media but they are unsuccessful in providing solutions for the same.
Opportunities for Spectrum
- Digital Media & Internet: In today’s generation everyone is an internet user. It has become a part of life. The Spectrum company can make their presence on the internet and can expand their network to reach out to more people.
- Improving Product & Services: The Spectrum company can stand out from the competitors by bringing improvement in their products and services. The improvement should be in the favour of the customer. There should be a standard quality of products and services.
- Advancement in Market Approach: Rules and regulations have now become lenient for businesses to function easily. Barriers and hurdles of trade have been reduced on the import of goods thus it leads to cost reduction.
- Low Rate of Inflation: The reduction in inflation brings stability to the market. It will help to lower the rate of interest on credits. low-interest-reiterate provides opportunities to work on projects with fewer loans.
Threats to Spectrum
- High Competition: Nowadays there is a huge increase in competition within the industries. This creates an impact on prices which will lead to a decrease in revenue or income for Spectrum.
- Change in Rules & Laws: The rules and laws of the industries keep on changing specifically during international trade. The companies need to be updated with the rules and laws if they operate on a high level.
- Change in Customer Taste: There is constant change going on in the world customers tastes keep on changing as per their needs. There is also demand for substitute goods. Due to this constant change companies can face a bit of difficulty running smoothly.
- Increase in Hate From Customer: Spectrum is facing tremendous hate from its consumer on Instagram & Twitter because of its poor internet services and unreliable customer support. The brand owner Charter Communication should work on its services, if not then the day is closer for Spectrum to get Shutdown completely.
(Source: Meaww.com & Twitter)
Useful Tip: Our purpose to facilitate you with this case study was to make you understand how offering poor services can flood your business with a bad online reputation just like Spectrum is facing right now.
You might have successful business plans for the future but if you somehow leg in building an online reputation then there are chances that your business will face challenges to maintain a positive brand image. So, learning online reputation management & marketing, digital PR & personal branding is important to build & promote a positive brand image along with marketing your product.
This ends our SWOT analysis of Spectrum. Let us conclude our learning below.
To Conclude
From the study of the SWOT Analysis of Spectrum, we understand that offering products and services in more numbers can never define the success of the company but offering less but yet quality services will let the company climb the ladders of success.
Spectrum is receiving immense hatred because of its poor services and internet speed. It is high time for Spectrum to work on this.
Also, Spectrum lacks in quality due to its widespread business and it also has high calling charges. The emerging competitors in the market and incentives from other mobile companies create a threat to the company.
However, some negative parts of the company can be eliminated with the use of advanced digital marketing techniques. As most people have been using digital media nowadays it is easy for businesses to find their target market. Thus digital marketing is crucial for every business. If you are keen on 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 Spectrum has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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