You are on page 1of 18


Strong Market Position

Robust Performance of cable position

Strong Programming content Warner Bros. is one of the largest movie producers in the world and is recognized internationally. With this high brand reputation as an entertainment leader, Warner Bros. has a strong competitive advantage.

As a huge company, Warner Bros. possesses large funds and enough resources to produce high quality movies and effectively market them without partnering with other parties. These funds also allow this company to hire the most popular actors, writers, and directors. With its strengths, Warner Bros. has produced many box office hits and earned significant revenues both domestically and internationally from ticket sales, DVD sales, rentals, and television.

No concrete process for selecting which films are made. Due to this issue, the company develops ten ideas at once but eventually only one of them is made into a film. This costs the company both time and money. Moreover, film productions are well known for running past deadlines; a reported 35% of the movies are behind schedule and take more time than expected Declining Revenue from geographical segments.

In fact, they say 5% of delayed films account for 80% of total cost overruns. This exceeds the Pareto Principle and shows how volatile the industry is. Tracking costs are difficult. Above-the-line and below-the-line costs often cause confusion, and it is not standard practice for companies to release production budgets

Improving presence in the internet advertising and social networking. Growing interactive advertising and marketing. Growth of HDTV market

Increasing the broadcast market

Increasing its competitive edge over market share on an international appeal.

Warner Bros. must hire more stars that have international recognition, as well as be careful of the genres of its films. In order to stay competitive, Warner Bros. should continue to invest in better, including 3-D technology, IMAX, and blu-ray disc releases. Finally, since Warner Brothers is a powerhouse, it has the opportunity to engage in partnerships on its own terms. This company must exploit their position to seek more marketing, video game deals, toys, and other peripheral markets.

Video Piracy Increased Competitors - Not only there are six other major studios, new minimajor studios are also emerging, such as New Line Cinemas. The changes in trends and customers preferences are also a huge challenge in this industry since customers likes and preferences are constantly changing. Economic Slowdown in US

Strong Financial Performance Strong Brand Equity Diversified Media Operations Significant Filmed Entertainment Content

Revenue Concentration in the US Ongoing Litigations

SWOT Analysis

Strategic Combinations Scope of DBS Market Growing Focus on e-Commerce Growing Pay-TV Market

Intensifying Market Competition Rising Piracy Menace Stringent Regulatory Environment Declining DVD Sales

Political Factors
Government Regulations Geographical market segmentations

Economic Factors
Economic Slowdown Decline in industries Fall of International markets

Social Factors
Changing Customer trends Dynamic tastes and volatility

Technological Factor
Highly innovative sector Needs to invest huge amount in technologies as a pioneer New and upgraded technology in productivity


Rivalry among existing firms - Strong Threat of new entrants - Weak Threat of substitute products or services - moderate

Bargaining power of suppliers - moderate

Bargaining power of buyers - moderate


Turner Broadcasting System, Inc. (Turner) Warner Bros. Entertainment Home Box Office, Inc. (HBO)

Time Inc.

Great financial health. Revenues - $28,974 million in 2011 $26,888 in 2010.

Net income - $2,886 million (10 percent) in 2011

$2,578 million (9.6 percent) 2010. Sales growth of 7.8 percent and a one year income growth of 11.9 percent

Time Warners profit margin in 2010 was 0.10 Time Warner recorded a 10 percent return on equity and a 4 percent return on assets (Time Warner Inc. Financials 2). As expressed by the stock price and profitability ratios. Time Warner is performing consistently with the industry.


In bound Logistics Operations Out Bound Logistics

Sales and Marketing

Service Firm Infrastructure, HR and Procurement