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1 Time Warner Ctr. | New York, New York | 10019-016 | United States
1 Time Warner Ctr. | New York, New York | 10019-016 | United States
Time Warner, Inc.
Reggie Gossett Time Warner, Inc.
Reggie Gossett 08
Fall
08
Fall
Table of Contents Executive Summary 2 Remote Environment 2 Operating Environment 3 The Company 3 Corporate Strategy 4 SWOT Analysis 5 Porter’s Five Forces Analysis 8 Strategic Business Units 9 Strategic Control 9 Financial Analysis 10 Conclusion & Recommendations 10 Works Cited 13
Executive Summary The beginnings of Time Warner Inc. date back to 1922, when Henry Luce and Briton Haden founded Time Inc. Also during that time, brothers Harry, Abe, Jack and Sam Werner established Warner Bros. Entertainment. Today, Time and Warner Bros., along with Home Box Office, Inc. and Turner Broadcasting System, Inc. combine to make Time Warner one of today’s prominent media and entertainment conglomerates. Time Warner’s corporate strategy revolves around strategic mergers, acquisitions and corporate actions that result in creating cash considerations for the company. Thus, Time Warner is in a strong financial position today as they recorded revenues of $26,888 million in 2010 and $28,974 million in 2011 (Morningstar.com). As a result of their strong financial performance, Time Warner has several strengths. Those include strong brand equity, diversified media operations and significant filmed entertainment content. Their weaknesses, however, include a concentration of revenue in the United States and ongoing litigations. Although Time Warner operates in Europe and the Asian Pacific and Middle Eastern regions, 71 percent of their business comes from inside of the Unites States (“Time Warner Inc. – Financial” 2). Therefore, Time Warner has many opportunities for expansion through strategic combinations. Other opportunities include the scope of the Direct Broadcast Satellite
Cited: “Braodcasting and Cable TV in the United States.” DataMonitor October 2011: 1 – 43. “Cable and other pay TV services.” Integra Information 20 May 2011. “Company Profile: Time Warner Inc.” MarketLine 29 July 2011: 1-40. “S&P Current Environment Report: Broadcasting, Cable and Satellite.” LexisNexis Academic 15 March 2012. "Time Warner." Time Warner, Inc. Web. 27 March 2012. . “Time Warner: Annual Report 2010.” 5 April 2011: 1-130. “Time Warner Inc. - Financial and Strategic Analysis Review.” GlobalData 11 May 2011: 1-4. “Time Warner Inc TWX.” Morningstar 15 March 2012. .