Philippine Christian University

Sampaloc 1, Dasmariñas City, Cavite

Graduate School of Business and Management

CASE STUDY OUTLINE

In the ever-evolving world of telecommunications, Time Warner Cable

was born in 1989 through a merger of Warner Communications and Time Inc.,
SUMMARY OF THE CASE becoming a subsidiary of Time Warner. Its mission was to provide cable television
services across the United States, quickly becoming a dominant player.

Throughout the 1990s and early 2000s, Time Warner Cable thrived in the
cable TV boom, expanding its services and merging with other cable companies. It
offered a wide range of channels and introduced its "Road Runner" internet service,
symbolizing its commitment to high-speed internet access.

However, Time Warner Cable faced challenges, including service

disruptions, pricing disputes, and channel blackouts. As the digital age arrived, it
adapted by offering bundled internet, television, and phone services.

A proposed merger with Comcast in 2014 failed due to regulatory

concerns and public opposition, forcing Time Warner Cable to reconsider its future.
Eventually, in 2016, Charter Communications successfully acquired Time Warner
Cable, creating Charter Spectrum.

The Time Warner Cable narrative reflects the ever-changing landscape of

telecommunications, witnessing the rise of cable TV, the internet age, and the
growth of streaming services. Despite challenges, it played a significant role in
shaping how Americans consume media and access the internet, leaving a lasting
legacy in the industry's ongoing story of adaptability and change.

The time context for the narrative of Time

Warner Cable spans the years from 1989 to 2016,
encapsulating a significant portion of the company's
history and the broader telecommunications industry
during this period.

1989 - The Birth of Time Warner Cable: Time

Warner Cable was established in 1989 as a subsidiary of
I. TIME CONTEXT
Time Warner, following the merger of Warner
Communications and Time Inc. This marked the beginning
of its journey in the cable television and
telecommunications industry.

1990s and Early 2000s - Cable TV Boom: During

the 1990s and the early 2000s, Time Warner Cable thrived
as the cable television industry experienced significant
growth. It expanded its services, merged with other cable
 companies, and offered an extensive range of channels.
This era also saw the introduction of the "Road Runner"
internet service, symbolizing Time Warner Cable's
commitment to providing high-speed internet access.

Challenges and Controversies: Throughout this

period, Time Warner Cable faced various challenges and
controversies, including occasional service outages, pricing
disputes, and conflicts with content providers. These issues
tested the company's reputation and customer
relationships.

The Digital Age: With the dawn of the 21st

century, the telecommunications landscape began to shift
dramatically. The internet became an integral part of daily
life, and streaming services started challenging the
traditional cable TV model. Time Warner Cable adapted by
offering bundled services that included internet, television,
and phone options.

2014 - Proposed Merger with Comcast: In 2014,

Time Warner Cable entered into a proposed merger with
Comcast, with the aim of creating a telecommunications
giant. However, this merger faced regulatory scrutiny and
public opposition, ultimately leading to its collapse. This
marked a significant turning point for the company.

2016 - Acquisition by Charter Communications:

Following the failed merger with Comcast, Charter
Communications successfully acquired Time Warner Cable
in a deal valued at over $78 billion. This resulted in the
creation of Charter Spectrum, which continued to provide
cable television and internet services to millions of
Americans.

By 2016, Time Warner Cable's narrative had

evolved significantly, reflecting the broader
transformations in the telecommunications industry during
these nearly three decades. This period encompassed the
rise of cable TV, the advent of the internet age, and the
disruptive impact of streaming services. It also highlighted
the company's adaptability and its role in shaping how
Americans consume media and access the internet.

In the case of Time Warner Cable, the individual with the power, authority,
and function to act on the resolution of the organization's problems would
II. VIEW POINT be the Chief Executive Officer (CEO) or President of the company. This top
executive is typically responsible for making critical decisions, setting
strategic direction, and addressing major issues within the organization.
They have the authority to allocate resources, implement changes, and
guide the company through challenges, making them the key figure in
resolving the organization's problems.

The main problem faced by Time Warner Cable (TWC) when considering
 the context of the company's operations up until my last knowledge
III. CENTRAL PROBLEM update in September 2021 was its poor reputation for customer service
and the associated customer dissatisfaction. This issue was the result of
various factors, including:

Service Outages and Quality: TWC experienced frequent service outages

and inconsistencies in service quality, leading to customer frustration.
This could be due to outdated infrastructure, lack of maintenance, or
other technical issues.

Pricing and Billing Issues: Many customers complained about unclear

billing practices, unexpected price increases, and hidden fees. This led to
disputes between TWC and its customers, resulting in a negative
customer experience.

Customer Service and Support: TWC's customer service and support were
widely criticized for being unresponsive, unhelpful, and often difficult to
reach. Long wait times on phone calls and inadequate assistance
exacerbated customer frustrations.

Monopoly-Like Behavior: In some areas, TWC operated as a de facto

monopoly, leaving customers with limited choices for cable and internet
service providers. This lack of competition gave TWC less incentive to
improve its customer service.

Regulatory and Legal Challenges: TWC faced regulatory and legal

challenges at various levels of government. These included disputes over
net neutrality, allegations of anticompetitive behavior, and concerns
about the impact of its merger with Comcast.

Reputation Damage: All of these issues contributed to a tarnished

reputation for TWC, which affected its ability to attract and retain
customers. A negative public perception can be damaging to a company's
long-term success.

The most significant conflict that TWC needed to address was the tension
between its business interests and the needs and expectations of its
customers. The company had the power to resolve this conflict by taking
several actions:

Investing in Infrastructure: TWC could invest in upgrading its

infrastructure to reduce service outages and improve the overall quality
of its services. This would require a substantial financial commitment.

Transparent Billing Practices: Implementing transparent billing practices

and eliminating hidden fees could help build trust with customers. This
would require a change in billing policies and communication strategies.

Improving Customer Service: TWC could enhance its customer service by

hiring more support staff, reducing wait times, and providing better
training for its customer service representatives.

Addressing Regulatory Concerns: TWC could proactively engage with

regulators and address concerns related to net neutrality,
anticompetitive behavior, and other legal challenges to demonstrate its
commitment to fair practices.
 Enhancing Public Relations: Launching public relations campaigns to
rebuild its reputation and communicate its efforts to improve customer
service could help regain customer trust.

Exploring Competitive Options: In areas where TWC operated as a near-

monopoly, the company could explore ways to introduce competition or
offer better incentives to customers.

Ultimately, resolving the conflict between its business interests and

customer needs was crucial for Time Warner Cable to rebuild its
reputation and secure its long-term success. However, please note that
the specific situation and challenges facing TWC may have evolved since
my last knowledge update in September 2021, so it's advisable to consult
more recent sources for the latest developments.

1. Improve Customer Satisfaction: Time Warner Cable may have specific

objectives related to improving customer satisfaction scores within a
defined time frame, such as increasing customer satisfaction ratings by a
certain percentage over the next year.
IV. OBJECTIVES
2. Reduce Service Outages: Objectives might include reducing the
frequency and duration of service outages, aiming to achieve a certain
percentage reduction in outages over a specific period.

3. Enhance Billing Transparency: Time Warner Cable could set objectives

to improve billing transparency by eliminating hidden fees and simplifying
billing processes, resulting in a reduction in customer billing disputes
within a certain time frame.

4. Decrease Customer Support Wait Times: Reducing customer support

wait times could be an objective, with the goal of ensuring that customers
spend less time on hold and receive quicker assistance.

5. Invest in Infrastructure: Objectives may involve specific infrastructure

investments, such as upgrading network equipment or expanding
coverage in underserved areas, within a defined budget and timeline.

6. Regulatory Compliance: Time Warner Cable might have objectives

related to regulatory compliance, such as ensuring adherence to net
neutrality rules or addressing any anticompetitive concerns raised by
regulators.

7. Public Relations Improvement: Objectives may focus on improving the

company's public image and reputation, such as increasing positive media
coverage and reducing negative publicity within a specific time frame.

8. Market Share Growth: Time Warner Cable could set objectives to

increase its market share in specific regions or product segments, with
quantifiable targets and time-bound goals.

9. Cost Reduction: Objectives may aim to reduce operational costs or

improve cost-efficiency, resulting in specific cost-saving targets over a set
period.

10. Competitive Analysis: Objectives related to competitive analysis might

involve monitoring and responding to actions taken by competitors within
the industry, ensuring that Time Warner Cable remains competitive.
 These objectives, as mentioned in the case study or in a real-world
scenario, are specific, measurable, time-bound, and aligned with the
available resources and constraints faced by Time Warner Cable. They
provide a strategic direction for the company to address its challenges and
improve its performance in various areas. Specific objectives make it easier
to track progress and measure success.
Strengths:

Strong Market Presence: Time Warner Cable, as one of the largest cable
and internet service providers in the United States, had a strong presence
in numerous markets, giving it a substantial customer base.

Content Library: TWC had access to a vast content library, including

popular TV channels and exclusive programming. This content library
allowed the company to attract and retain subscribers.

V. AREAS OF CONSIDERATION Technological Infrastructure: The company had invested in a significant

technological infrastructure for delivering cable TV and high-speed
internet services, which positioned it well to meet customer demands.

Bundling Services: TWC had the ability to bundle cable TV, internet, and
phone services, providing convenience and potential cost savings to
customers.

Exclusive Deals: It had secured exclusive rights to broadcast certain

sporting events and shows, which could be a competitive advantage.

Weaknesses:

Customer Service Issues: TWC had a poor reputation for customer service,
characterized by long wait times, billing disputes, and unresponsiveness.
This was a significant weakness and a source of customer dissatisfaction.

High Prices: The company faced criticism for its pricing structure, including
frequent price increases and hidden fees, which contributed to customer
complaints.

Regulatory Challenges: TWC encountered regulatory and legal challenges,

including net neutrality debates and concerns about its market
dominance, which posed potential risks to its operations.

Competition: In some areas, TWC faced competition from other cable

providers and newer internet streaming services, leading to pressure on
pricing and customer retention.

Outdated Infrastructure: In certain regions, TWC's infrastructure was aging

and required significant investment to meet modern technological
standards.

Opportunities:

Improved Customer Service: Addressing customer service issues could be a

significant opportunity. By investing in better support and communication
with customers, TWC could enhance its reputation.

Broadband Expansion: As the demand for high-speed internet continued

to grow, TWC had the opportunity to expand its broadband services into
underserved or unserved areas.

Content Innovation: The company could continue to innovate in content

delivery, including creating and acquiring exclusive content to attract and

VI. ALTERNATIVE COURSES OF ACTION
retain subscribers.
Pricing and Packaging Strategies: TWC could explore pricing strategies and
packaging options to better compete with streaming services and address
customer concerns about costs.
Technology Upgrades: Investing in infrastructure and technology upgrades
could enhance service quality and reliability.
Strategic Alliances: Forming strategic alliances with content providers or
technology companies could open up new opportunities for partnerships
and content distribution.
Diversification: Exploring new revenue streams, such as offering additional
services like home security or expanding into adjacent markets, could help
diversify TWC's business.
It's important to note that the competitive landscape and industry
dynamics in the telecommunications and media sector can change rapidly.
Therefore, TWC's strengths, weaknesses, and opportunities may have
evolved since my last knowledge update. Conducting a current analysis
based on the latest information would provide a more accurate
assessment.
Time Warner Cable (TWC), as a major player in the cable and
telecommunications industry (as of my last knowledge update in
September 2021), could adopt various strategies to address its challenges
and enhance its competitive position. These strategies should be aligned
with the company's strengths and opportunities while mitigating its
weaknesses. Here are some strategies that TWC could consider:
1. Enhance Customer Service:
Invest in improving customer service by reducing wait times, offering
better support, and enhancing communication channels.
Implement proactive customer engagement to address issues before
they escalate.
2. Transparency in Pricing:
Simplify billing practices and provide transparent pricing to reduce
customer disputes and build trust.
Offer clear, long-term pricing guarantees to prevent unexpected price
increases.
3. Invest in Infrastructure:
Upgrade and modernize the company's infrastructure to improve service
quality and reduce outages.
Expand high-speed internet coverage to underserved or unserved areas.
4. Content Innovation:
Continue to invest in exclusive content and partnerships to attract and
retain subscribers.
Develop original programming to compete with streaming platforms.
5. Competitive Pricing and Packaging:
Develop flexible pricing plans and bundle services to cater to a variety of
customer needs.
Explore loyalty programs and incentives for long-term customers.
6. Technology Upgrades:

Invest in cutting-edge technology to offer faster internet speeds and

improve the customer experience.
Embrace advancements in home automation and smart home services.

7. Regulatory Engagement:

Engage with regulatory bodies and policymakers to address regulatory

challenges and ensure compliance.
Advocate for policies that promote fair competition and innovation.

8. Customer Retention and Loyalty:

Implement customer retention programs to reduce churn rates and

retain existing subscribers.
Offer incentives for bundled services and long-term contracts.

9. Diversification:

Explore diversification into related markets, such as home security

services, to expand revenue streams.
Consider strategic acquisitions or partnerships to enter new markets.

10. Strategic Alliances:

Form partnerships with content providers, streaming services, or

technology companies to enhance offerings and reach a broader
audience.
Collaborate with local governments to expand services in specific regions.

11. Public Relations and Reputation Management:

Launch public relations campaigns to rebuild the company's reputation

and communicate its efforts to improve customer service.
Actively engage with customers on social media and other platforms to
address concerns.

12. Data-Driven Decision-Making:

Utilize data analytics to gain insights into customer behavior and

preferences, allowing for more personalized services and marketing.

13. Sustainability Initiatives:

Embrace sustainability practices by investing in energy-efficient

infrastructure and reducing the company's environmental footprint.

14. Market Expansion:

Explore opportunities for geographic expansion into new markets, both

domestically and internationally, where there is a demand for cable and
internet services.

15. Employee Training and Development:

Invest in employee training and development programs to ensure a

skilled and motivated workforce capable of delivering high-quality
service.

TWC should carefully assess its current situation, market dynamics, and
competitive landscape when selecting and implementing these
strategies. Flexibility and adaptability are key in an industry that
continually evolves due to technological advancements and changing
customer preferences.

Advantages and Disadvantages:

A. Advantages:

1. Enhance Customer Service:

Advantage: Improved customer satisfaction, reduced churn, and

enhanced brand reputation.
Advantage: Stronger customer loyalty and potential for positive word-of-
mouth referrals.

2. Transparency in Pricing:

Advantage: Increased trust and customer confidence, leading to reduced

disputes and better customer retention.
Advantage: Attract price-sensitive customers and maintain long-term
relationships.

3. Invest in Infrastructure:

Advantage: Improved service quality, reduced outages, and enhanced

customer experience.
Advantage: Ability to offer higher-speed internet and compete effectively
with rivals.

4. Content Innovation:

Advantage: Attract and retain subscribers with exclusive content,

boosting revenue.
Advantage: Differentiate from competitors and potentially charge
premium pricing.

5. Competitive Pricing and Packaging:

Advantage: Attract a wider range of customers with tailored pricing

options.
Advantage: Increase customer retention by offering bundled services and
loyalty programs.

B. Disadvantages:

1. Enhance Customer Service:

Disadvantage: Costly investment in staff training and infrastructure.

Disadvantage: May take time to see a noticeable improvement in
customer satisfaction.

2. 3Transparency in Pricing:

Disadvantage: Potential for short-term revenue reduction due to clearer

pricing.
Disadvantage: May need to eliminate profitable but confusing pricing
practices.

3. Invest in Infrastructure:

Disadvantage: High initial investment in infrastructure upgrades.

Disadvantage: May require significant downtime for maintenance and
 upgrades.

4. Content Innovation:

Disadvantage: High costs associated with creating or acquiring exclusive

content.
Disadvantage: Competition from streaming services and content
providers.

5. Competitive Pricing and Packaging:

Disadvantage: Potential revenue loss from offering discounts or bundled

deals.
Disadvantage: Balancing affordability with profitability can be
challenging.

Each of these strategies has its own set of advantages and disadvantages,
and the effectiveness of these strategies will depend on various factors,
including market conditions, customer preferences, and the company's
ability to execute them successfully. TWC would need to carefully
evaluate and prioritize these strategies based on its specific goals and
circumstances.

To fulfill the objective of enhancing customer satisfaction, Time Warner Cable

(TWC) should take the alternative course of action of improving customer service.
VII. RECOMMENDATION This involves assessing current performance, identifying issues, investing in training
and technology, enhancing communication channels, setting clear service
standards, resolving billing issues proactively, implementing a feedback
mechanism, and monitoring progress. This action aims to increase customer
satisfaction, reduce churn, enhance TWC's reputation, promote positive word-of-
mouth referrals, foster customer loyalty, and provide a competitive advantage.
Continuous monitoring and adjustments are crucial to ensuring the ongoing
fulfillment of this objective.

Schedule of activities or Gantt Chart - Bar chart

which illustrates project schedule from start to finish

Project: Customer Service Improvement Initiative

Objective: Enhance customer satisfaction by improving customer
VIII. PLAN OF ACTION service.
Start Date:January 2023 End Date:July 2023

A set of activities, steps, or procedures programmed and

bounded to a specified amount of time for Time Warner Cable
(TWC) aimed at improving customer service. These activities are
organized sequentially and may have dependencies on each
other:

Project: Customer Service Improvement Initiative

Objective: Enhance customer satisfaction by improving customer
 service.

Activity 1: Project Kickoff

Description: Initiate the customer service improvement project,
establish project goals, and assign project team members.
Duration: 1 week

Activity 2: Current Performance Assessment

Description: Conduct a comprehensive assessment of TWC's
current customer service performance, including customer
satisfaction surveys, feedback analysis, and performance metrics.
Duration: 4 weeks

Activity 3: Identify Pain Points

Description: Identify specific pain points and bottlenecks in the
customer service process, such as long wait times, billing
disputes, or unresponsive agents.
Duration: 3 weeks

Activity 4: Training and Technology Investment

Description: Allocate resources to train customer service
representatives in effective communication, problem-solving, and
conflict resolution. Implement technology solutions to streamline
customer inquiries.
Duration: 6 weeks

Activity 5: Communication Channel Enhancement

Description: Expand and diversify communication channels,
including phone, live chat, email, and social media, to meet
customer preferences.
Duration: 4 weeks

Activity 6: Service Standards Implementation

Description: Establish clear service standards and response time
targets for customer service representatives. Develop training
materials and protocols.
Duration: 2 weeks

Activity 7: Proactive Billing Issue Resolution

Description: Improve billing transparency and clarity to reduce
billing disputes. Implement a system to proactively identify and
address billing issues before customers have to contact support.
Duration: 5 weeks

Activity 8: Customer Feedback Mechanism

Description: Implement a robust system for collecting and
analyzing customer feedback. Develop processes for acting on
feedback and continuous improvement.
Duration: Ongoing

Activity 9: Progress Monitoring and Adjustment

Description: Continuously monitor customer service performance
against established standards. Collect feedback from customers
and make adjustments as needed.
Duration: Ongoing

These activities are organized in a logical sequence, with some

activities running concurrently. Activities like the Customer
Feedback Mechanism and Progress Monitoring and Adjustment
are ongoing and should continue throughout the project to
ensure sustained improvement in customer service.
Please note that this is a simplified representation, and in
 practice, project management software or tools would be used to
manage and track the progress of these activities, assign
responsibilities, and set specific timelines. Additionally, the actual
duration and sequence of these activities may vary depending on
the scale and complexity of the improvement initiative.

SWOT ANALISYS
Time Warner Cable, now known as Spectrum after its merger with Charter Communications, operates in the
telecommunications and cable television industry. To analyze the SWOT (Strengths, Weaknesses,
Opportunities, Threats) for Time Warner Cable, you should consider both its historical position and potential
factors affecting it as of my last knowledge update in September 2021. Keep in mind that the industry and
the company's situation may have evolved since then.

Strengths:

Broad Customer Base: Time Warner Cable (TWC) had a vast customer base, including cable TV, internet, and
phone subscribers, which provided a steady revenue stream.

Strong Market Presence: TWC had a significant market presence in many regions of the United States, which
allowed it to maintain competitive advantage.

Content Offerings: It had access to a wide range of cable channels and premium content, enhancing its
attractiveness to consumers.

Technological Infrastructure: TWC had invested in modern technology and infrastructure, providing high-
speed internet and advanced cable services.

Weaknesses:

Customer Service Issues: TWC faced criticism for poor customer service, which resulted in customer
dissatisfaction and regulatory scrutiny.

Price Increases: Continuous price increases for cable and internet services led to customer attrition and
negative publicity.

Competition: The cable industry faced stiff competition from streaming services, leading to cord-cutting and
declining subscriber numbers.

Legacy Systems: Legacy systems and outdated technology made it challenging to adapt to rapidly changing
consumer preferences.

Opportunities:

Expansion of Internet Services: There was an opportunity to further expand high-speed internet services,
especially in underserved or rural areas.

Streaming Services Integration: TWC could potentially integrate streaming services into its offerings or
provide unique content bundles to compete with cord-cutting trends.

Bundling and Cross-Selling: Leveraging its services, TWC could bundle cable, internet, and phone services
more effectively to retain and attract customers.

Technology Upgrades: Investments in upgrading infrastructure and adopting cutting-edge technologies could
improve service quality and customer satisfaction.

Threats:
Cord-Cutting: The trend of consumers abandoning traditional cable TV in favor of streaming services posed a
significant threat to TWC's cable TV business.

Regulation and Competition: Regulatory changes and increased competition from other telecom and internet
providers could impact market share and profitability.

Rising Content Costs: Escalating costs for content acquisition could squeeze profit margins.

Cybersecurity: As an internet service provider, TWC faced threats related to cybersecurity and data breaches.

Economic Downturn: Economic downturns could lead to reduced consumer spending on cable and internet
services.

Technological Disruption: Rapid advancements in technology could render TWC's existing infrastructure and
services obsolete.

Please note that the actual SWOT analysis for Time Warner Cable (now Spectrum) may differ based on
current market conditions and company strategies beyond my last knowledge update in September 2021. It's
essential to consider the most recent information and industry trends when conducting a thorough SWOT
analysis for any organization.