Environmental Assessment
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Introduction
Dish Network Inc. is the fourth biggest pay-TV provider, offering direct broadcast satellite services as well as audio programming, satellite television, and interactive television services to about 14 million residential and commercial subscribers in the United States (Wilkinson and Kannan, 2013). The firm has an estimate of 24,000 employees who are mainly located within the United States. The company’s headquarters is located in Englewood, Colorado, the U.S. and it was established in 1980.
The contextual analysis is important as it can enable the firm to have an unbiased and clear view of its potential threats and opportunities, and major weaknesses and strengths. The analysis can enable the firm to develop strategies to augment its business and to enable it to understand its competitors, customers, and business partners better (Wilkinson and Kannan, 2013). This will help to gain the understanding of the company and factors which influence its strategies, and to remain dated on the company’s prospects. This paper aims to examine what Dish Network should be doing to analyze the external macro-environment and how this macro-environmental analysis overlaps with company’s internal microenvironment efforts.
Analysis of External Macro-Environment
PEST analysis
PEST analysis refers to a framework that is utilized to scan the company’s external macro-environment (Hitt, Ireland, and Hoskisson, 2015). Within every industry, there are factors which affect its economy. As Dish makes its way to TV and media industry, one important approach to analyzing the environmental factors which are driving competition is the PEST analysis. The PEST analysis is a system which used to analyze technological, economic, political, and social factors the environment in which the firm operates. These factors have an influential role in the creation of valuable opportunities of the organization’s strategy. Nevertheless, these factors are typically beyond the control of the firm and must typically be regarded as either opportunities or threats.
Political factors refer to the extent and how the government intervenes in the industry (Wilkinson and Kannan, 2013). Dish is subjected to observe industry specific regulations and laws defining the operations of its business commitments.
Economic factors have crucial effects on how the organization operates and creates decisions. In TV and media industry, DISH has many competitors such as Netflix, DIRECTV, Comcast, Time Warner, TiVo, and AT&TU (Hitt, Ireland, and Hoskisson, 2015). Therefore, Dish has to create strategic focus to gain a competitive advantage over its competitors.
In social factors, some trends affect the demands of firm’s products and services and how the firm operates (Charles, Melissa, and Gareth, 2016). At present, consumers are abandoning the traditional pay-TV subscription in preference to online streaming services. Customers now prefer on-the-go lifestyle and demand their entertainment to fulfill their dynamic needs.
Technological factors involve technological things like innovations, R&D activity, technology incentives, ...