Time Warner Analysis
BUSINESS CASE ASSIGNMENT 1 Jie Tian Zhaopeng Li A. As part of strategic planning exercise, describe and analyze the vision and mission statements of Time Warner Inc. There is no explicit vision or mission statements on Time Warner’s website. But according to the description of vision and mission statements on class the “ABOUT US” statement on the company’s website resembles the mission statement and the “OUR VALUES” statement fits the definition of vision statement. The “ABOUT US” statement describes that Time Warner Inc. a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets. First off, this mission statement is a product-oriented mission because it states what products and services it serves its customers. Second, the statement emphasizes that Time Warner is a global leader and provide services worldwide. It shows the scope and domain of the organization is around the globe.
And it also clearly describes the organization’s purpose is to create, package and deliver high-quality content through multiple distribution outlets. The “OUR VALUES” on the website describes that the company encourages risk-taking and divergent voices, makes the highest quality premium content available on every device, creates value by working together within and across our business, upholds editorial independence and artistic expression, attracts and develops the world’s best talent and takes pride in serving the public interest.
The “OUR VALUES” statement falls into seven categories which are creativity, customer focus, agility, teamwork, integrity, diversity and responsibility. The statements show the ambitious long-terms goals of the organization such as recruiting the world’s best talent and making its content available on every device. It also mentions how the organization will generate value for the future through effective teamwork, innovation and originality and embracing changes and opportunities B. Explain, in detail, its basis of competitive advantages using Porter’s generic strategies (show how this is supported through the firm’s value hain activities) Time Warner has four main subsidiaries which are Turner Broadcasting System, Warner Bros. Entertainment, Home Box Office, and Time Inc. Turner’s entertainment networks include TBS, TNT, Cartoon Network, tru TV, Turner Classic Movies and Boomerang. Turner’s news networks consist of CNN and HLN. Each of the subsidiaries of Turner has their own specialties for example that TBS focus on contemporary comedies like The Big Bang Theory, TNT focus on drama, tru TV focus on real-life stories from a first-person perspective.
Warner Bros. Entertainment include Warner Bros. which produces and distributes feature films, Warner Bros. Television Group which develops, produces and distributes television series, reality-based entertainment shows and animation programs for the Company’s network and third parties. Other subsidiaries under Warner Bros. Entertainment are Warner Bros. Animation Inc. , Warner Home Video, Warner Bros. Digital Distribution, Warner Bros. Interactive Entertainment, Warner Bros. Consumer Products Inc. and DC Entertainment.
The third segment of the organization is Time Inc. which is the largest magazine publisher in the U. S. based on commercial avenue and published 21 magazines in print in U. S. and over 70 magazines out of U. S. which covers the topic of style and entertainment, lifestyle, news and sports. Time/Warner Retail Sales & Marketing Inc. is also a subsidiary under Time Inc.. Home Box Office (HBO) is the nation’s most widely distributed multi-channel premium pay television service which consists of recently released uncut and uncensored theatrical motion pictures.
Based upon the brief introduction of various segments in the organization above it can be concluded that the competitive advantage of Time Warner is founded on differentiation. Porter suggested that a firm could only apply one of the three generic strategies or the company could be “stuck in the middle” and will not achieve a competitive advantage. However, he also argued that firms could only succeed at multiple strategies by creating separate business units for each strategy.
In Time Warner case differentiation strategy and differentiation focus strategy are both applied in achieve its competitive strategy. For networks and film business the company is competing with other film production and network companies. Television programming, feature films and news are the products of these industries which always have a massive audience scope and the companies try to differentiate themselves from competitors. The uniqueness of the product is the key in the competition that customers would like to pay a premium price for the products.
Time Warner exploits its brand recognition and embraces innovation and creativity to product various different focused programs and movies to distinguish itself from its competitors. The competitive advantage is achieved through differentiation focus for HBO and magazines business because of their narrow market focus. Magazines like Essence and Golf face targeted audience instead of the broad scope audience. Time Warner has its own well developed distribution channel and sales& marketing company.
Therefore, its differentiation could be effectively supported by the outbound logistics and Sales &Marketing sections in the value chain. C. Mintzberg’s family of strategies. Time Warner is involved in both the midstream and downstream business because it develops, produces and distributes feature films, TV programming and magazines. Time Warner distinguishes itself in achieving competitive advantage through differentiation strategy and differentiation focus strategy. Time Warner elaborates its core business by market development strategy and diversification strategy.
Time Warner develops its market mainly by geographic expansion and technology expansion. For example, Turner distributed 57 networks of it regional entertainment brands in over 200 countries. Time Inc. made all of its’ U. S. magazines available at tablet editions. The CW broadcast network cooperated with Netflix. Inc. and Hulu to expand its distribution channel. Time Warner extends its core business by the strategies of entry and control and listening. The 50-50 joint venture between Warner Bros. and CBS Corporation created the CW broadcast network.