DIRECTV
DIRECTV also known as DTV is a digital television company providing its DTH (direct-to-home) services to more than 20 million customers in the US and more than 19 million customers in Latin America. The company ranks # 379 in the Global 500 list. It ranks # 98 in Fortune 500 companies. The TV also operates four regional sports networks (RSNs) under the brand name Root Sports. The company’s vision is make DIRCTTV the best video experience for the US and Latin American customers anywhere and anytime (DIRECTV, 2015, p. 2).
The aim of this paper is to examine how to move the company upwards in the ladder of fortune 500 companies and what changes are needed and how to manage the change.Over view The company is committed to values of leadership, innovation, decisiveness, agility, teamwork, and integrity. The company also believes in employee engagement with the result there is an environment of loyalty directly attributable to customer satisfaction, productivity, and profitability. Working in a highly competitive market, the company has decided to merge with AT & T in response to changing consumer preferences to bundle of video and broadband services and also watching through mobile services. When the merger is completed, the company will have access to additional resources to better compete in the competitive environment.
The merger will result in increased number of customers to over 100 million with the bundle of DirecTV’s video and AT&T’s wireless service. Key strengths of the company are large subscriber base, leading brand, relationship with DIRECTV US, high quality picture and sound, unique and differentiated content, sales and marketing, and strong customer satisfaction.Business strategy is to achieve leadership position in higher end markets and leveraging scale to profitably serve middle market segment along with penetration.Company employs approximately 16,500 full time employees and 450 part time employees in the US and 13,000 full time and 2000 part time employees in Latin America. And 200 full time employees in RSNs. Company’s business is not without risks of increased competition. Main competitors are Comcast Corporation, DISH Network Corporation and Time Warner Cable Inc.Strong Balance Sheet With the strong cash position, the company has repurchased $ 31 billion worth of stocks in the last nine years accounting for almost 66 % of the shares originally issued. The repurchase program has been on hold pending merger with AT & T. The company’s key financials are stated below.
The Annual report of the company states that the DIRECTV will merge with AT & T sometime in the first half of 2015. It states that DIRECTV will combine with AT & T in a stock and cash transaction (p 82). It appears that name of the DIRECTV will be retained. While the US Department of Justice and Federal Communications Commission has to review the proposed merger, Brazil telecommunications and Mexican Antitrust authorities have already approved the transaction (p82). It has been reported in …
