Tuesday, June 26, 2012

Diversification at Directv

When a firm is diversified they are conducting business in more than one area or particular market.  Being diversified means that a company stands to become more profitable and reduce the risk being driven out of a market by competition or other factors such as economic slowdown.  Since programming costs are constantly rising, which is paid for by the customer and service provider, Directv has decided to offset some of their shrinking margins by doing more than just providing digital cable.  Directv has decided to venture into original programming with their debut series "Rouge".  According to the experts, Directv is trying to either create profits or create a unique selling proposition.  A unique selling proposition is something that sets a firm apart from its competitors.  Most recently, Directv has done this with their NFL Sunday Ticket package.  No other firm offers broadcasting of all the NFL's games.  Now Directv will try to compete with major media conglomerates such as Time Warner.  Directv is experiencing a period of decline in their gross profit margin so now is as good a time of any to venture into new grounds.

2 comments:

  1. I was a DirecTV customer for 13+ years before the true customer service was revealed. DirecTV has the worst service hiring idiots for managers. I would have been satisfied had I received a call from the corporate office asking why I immediately dropped my service after several years. Unfortunately, I tell anyone that will listen that DirecTV provides the poorest customer service. Dish is clearly not the best between to two but their customer service is extremely superior.

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    1. I am curious what is your definition of customer service? I have found that people define it as an opportunity to get something for nothing. I was always taught that you cannot get everything you want. You have to look at what you lost for getting hasty because you did not get what you called about. I have worked for AT&T for a long time and find it sacra-religious over something minor. You gained less HD channels pay more in the long run and gain a two year contract for your hastiness. When you signed that paper did you read the fine print, I think not you just did it because you believe a company has poor customer service I think you need to look at you before you push your agenda on others. I know I did not change your mind but before you do it again down the road think before you leap you will be happier in the long run

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