Essay on Dish Network External Analysis

1351 Words Feb 10th, 2012 6 Pages
Dish Network The external analysis of Dish Network shows the TV service providers industry and environmental factors that affect those companies in the industry. The two studies that were used to examine the external factors were PEST Analysis and Michael Porter’s Five Competitive Forces. Through these two studies, Dish Network can have a better understanding of not only their industry factors, but other environmental issues that may cause a need for concern. The first study that we will discuss is the macro-environmental study PEST. This study was used to examine the four main environmental factors that could/would affect those in the industry. The four main environmental factors include political, economic, social, and technological. …show more content…
There has already been evidence that subscription sales are lower than a year ago, and the chief cause seems to be unemployment rates (Svensson). Due to high unemployment, more people have been living with their parents, reducing the need for separate cable bill (Svensson). Analysts’ opinion on the current economic cycle stage could have a positive or negative effect on the industry. Depending on which analysis you read about, there could be a difference in opinion on the current state of the economy. For those analysts who believe that the recession is over and that we are on the road to recovery, they could have a positive impact. People might feel as if the economy has turned around and they can start getting back to their luxuries. For those people who still are in fear of the recession effects, they may be less likely to buy subscriptions. The third environmental factor in the analysis that was looked at was social. Demographics are a factor in many forms. There is a generation effect that could be a negative or positive aspect. The positive side would be that with new technology, Dish Network and other satellite providers are appealing to a younger generation who will be more interested in their products. The negative would be the older generation who prefers a simpler form of watching television, such as the cable side of the industry. The population’s leisure interest could also affect the industry. Some

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