Time Warner Cable Inc.

Presented by: David Green, Tiffany Gray, Frankie Miamen, Nick Foster, and Tobi Coker

Vision Statement

Company’s Mission Statement *“Connect people and businesses with information, entertainment and each other.  Give customers control in ways that

are simple and easy.”

Vision Statement*To become the premier service provider of internet, phone and television by leading

the market in innovation while enhancing the overall customer experience and

satisfaction.

SWOT Strengths:

Brand NameStrong Market PositionProgramming Variety

Consistent Revenue GrowthLowest Programming Cost

Social ResponsibilityDiversity

Weakness:Failure to Innovate

ExpensiveSignificant Debt

Legal InvestigationsHeavy Dependence of SuppliersRequires Personal Information

Customer Service

Opportunities:Online Video ContentInternational Market

Fiber OpticsGrowth of HDTV/3D

Cloud ComputingRapid Technological Changes

Mergers/Acquisitions and Joint Ventures

Threats:Stand Alone ServicesHeavy Competition

Government RegulationsLicensing Rights

Economic RecessionSlow Industry Growth Rate

Piracy/Alternative Sources of VideoCord Cutting

Generic Strategy

Time Warner Cable is currently operating under a Broad Differentiation strategy.

Shift from Broad Differentiation strategy to Best Cost Strategy.

Time Warner vs. Competitior’s

Company Bundle Packages Basic Packages (just TV)

Double Play Internet Alone Voice Services Alone

Time Warner Cable $124.85 / month (TV, Internet, Phone)

$49.95/month $84.90/month (TV & Internet)

$34.95/month (High Speed)

$39.95/month

Comcast Corp. $99 / month (TV, Internet, Phone)

$29.99 (over 80 channels, including on Demand movies & TV shows)

$69.99/month (TV & Internet or Voice)

$29.99/month (High Speed)

$29.99/month

DirecTV $75 / month (TV, Internet, Phone)

$29.99 (Over 150 digital channels)

*Only available after ordering service through a “bundle specialist”

*Only available after ordering service through a “bundle specialist”

*Only available after ordering service through a “bundle specialist”

Verizon Fios $84.99 / month (TV, Internet, Phone) N/A

$64.99 (TV & Internet)$59.99 (TV & Phone)

$49.99 (with home phone service) N/A

Dish Network*Pricing only available after ordering service.

$29.99 (Top 120 channels)

Not sure if this is available.

Not sure if this is available.

Not sure if this is available.

AT&T U-Verse $89.00/ month (TV, Internet, Phone)

$34/month $64.99/month (TV & Internet)59.95/month(Internet & Phone)

$39.95 (High Speed) Available through AT&T Wireless & Home.

Financial & Strategic Objectives

Financial Objectives

Increase overall revenue by 20-25% in the next 3-5yrs

Increase profit margins by 1-3% in the next 5 years.

Strategic Objectives

Increase overall market share by 10-15% in the next 5 years.

Increase overall customer satisfaction

Supplemental Strategies

Offensive Gain Market Share Need to innovate

Defensive Need to Strengthen market position Improve upon our weaknesses

Sports Package App Strategic Rationale

74% of people apps downloaded by people allow them to regularly get updates on sports, news, weather and stocks.

This will allow us to stand out and offer something that other competitors aren’t doing at the moment.

43% of people download apps that allow them to watch TV and movies. The demand is there for more streamlined line content not only on laptops but, for tablet and smart phones.

Sports Package App

Sports Package App Implementation Strategy: Phase 1

Acquire the licensing rights to allow mobile access Phase 2

Test the mobile app in states we primarily operate Phase 3

Implement the mobile app to all subscribers Allow current subscribers access to the mobile app if they have

purchased a sports package New subscribers offer sports packages at a discount for a limited time

with first release of the app Phase 4

Monitor the results and add new sports that would be profitable

Customer Loyalty ProgramStrategic Rationale

Increase Customer RetentionAttract More customersIncrease Brand LoyaltyRaise switching Costs

Customer Loyalty ProgramIMPLEMENTATION STRATEGYPHASE 1

Consumer ResearchLook at current subscribers to see who bought during a promotion period

PHASE 2Interpret and Analyze the dataWhich promotional periods brought in the most customersBegin to structure a loyalty program

PHASE 3Implement the loyalty program to subscribersBegin to market the program to consumers

PHASE 4Keep improving because it will constantly change Continuous consumer research

Down To EarthStrategic Rationale

Capitalize on opportunities presented in the SWOT

Streamlined Content Cloud Computing

Down To EarthIMPLEMENTATION STRATEGYPHASE 1

Enter into agreements with Amazon and Time Warner IncPHASE 2

R&D on technological capabilities needed to implement the servicePHASE 3

Test it in the marketImprove and adjust any areas of error

PHASE 4Implement it to the marketMonitor it to the marketMonitor results

Increase Customer Service Performance

Strategic Rationale Enhance our brand image Increase Customer Retention

Increase Customer Service PerformanceImplementation Strategy Phase 1

Look into the states with our highest subscriber base Do customer reviews to see where we fail Re-evaluate our training program and system

Phase 2 Expand and build customer care centers in the states where most of our subscribers

reside Expand more into the Midwest open in Chicago Begin to design a new training program and improve

Phase 3 Monitor results and continue to expand and open up new customer care centers every

6 months to a year Implement the new program Current employees must go through training again and monitor results

Change Pricing Model

Strategic Rationale Too expensive Need to be more competitively priced Increase subscriber base and retention rate

Change Pricing Model

Implementation Strategy Phase 1

Look at competitors pricing models Phase 2

Adjust and build upon our tiered system Match prices to be competitively priced with competitors

Phase 3 Implement the new pricing model to all subscribers

PricesCompany Bundle Packages Basic Packages (just

TV)Double Play Internet Alone Voice Services

Alone

Time Warner Cable $124.85 / month (TV, Internet, Phone)

$49.95/month $84.90/month (TV & Internet)

$34.95/month (High Speed)

$39.95/month

Comcast Corp. $99 / month (TV, Internet, Phone)

$29.99 (over 80 channels, including on Demand movies & TV shows)

$69.99/month (TV & Internet or Voice)

$29.99/month (High Speed)

$29.99/month

DirecTV $75 / month (TV, Internet, Phone)

$29.99 (Over 150 digital channels)

*Only available after ordering service through a “bundle specialist”

*Only available after ordering service through a “bundle specialist”

*Only available after ordering service through a “bundle specialist”

Verizon Fios $84.99 / month (TV, Internet, Phone)

N/A

$64.99 (TV & Internet)

$59.99 (TV & Phone)

$49.99 (with home phone service)

N/A

Dish Network

*Pricing only available after ordering service.

$29.99 (Top 120 channels)

Not sure if this is available.

Not sure if this is available.

Not sure if this is available.

AT&T U-Verse $89.00/ month (TV, Internet, Phone)

$34/month $64.99/month (TV & Internet)

59.95/month(Internet & Phone)

$39.95 (High Speed) Available through AT&T Wireless & Home.

Impact on Competitive Position

Key Success Factor/Strength Measure

Time Warner Cable Inc.

Comcast Corp. DirecTV Dish Network

Importance Weight

Strength Rating

Score Strength Rating

Score Strength Rating

Score Strength Rating

Score

Consumer Relations 0.10 6.0 8.0 0.8 7.0 0.7 10.0 1.0 8.0 0.8

Economies of Scale 0.17 8.0 1.4 10.0 1.7 9.0 1.5 3.0 0.5

Location/Reach 0.23 6.0 7.0 1.6 9.0 2.1 8.0 1.8 5.0 1.2

Clever Marketing 0.12 8.0 1.0 7.0 0.8 7.0 0.8 7.0 0.8

New Service Innovation Capabilities

0.23 6.0 8.0 1.8 9.0 2.1 7.0 1.6 7.0 1.6

Programming 0.15 9.0 1.4 10.0 1.5 8.0 1.2 5.0 0.8

Sum of Importance Weights

1.00

Weighted Overall Strength Rating

43.00 46.00

7.03 7.62

52.00 8.88 49.00 8.02 35.00 5.66

Impact on Competitive Position