Sample Business Studies Reflection Paper on Time Warner: Issues

One of the challenges I believe that Time Warner is likely to face is low subscription, especially to its internet services. One of the things that the company is known for is the provision of stable and efficient internet services, which has attracted a huge customer base. Customers usually prefer and remain loyal to a subscriber only if their states and preferences are met. When corporations deviate from the features that attract customer to it, they risk losing their clients base. Indeed, Time Warner is staring at the possible loss of its customer base due to the recent internet-provision challenge that has impacted on its efficiencyThe service has had frequent disruptions inconsistency and reliability in the recent times. Complacency in ensuring that the internet services are consistent, uniform, and regular has been blamed for the issue. Judging from the feedback of several current users, many are disappointed atthe mentioned trend.

The corporation runs the risk of its existing clients shifting their base and seeking for alternatives in the market that they believe would satisfy their needs. Once the existing customers shift their base, the market share will reduce, which will have a negative impact in the operational efficiency and profitability of the company. Poor products and unsatisfactory services usually influence potential subscribers. They drive away the potential clients who would otherwise be interested in having the internet services(Napoli & Dwyer, 2018). Once the internet service of the companygains a negative reputation in the market, then it may scare away the potential investors. Once the rate of subscriptions to the internet service offered goes down, the operational efficiency will reduce. As such, it is imperative for the organization toresolve this issue as soon as possible to avoid losing current and potential customers.

The secondissue affecting Time Warner is the financial difficulty occasioned by the intense competition it experiencesfrom the industry. Today, several players have infiltrated the market, which has impeded a significant growth in the market share of Time Warner. As such, the corporation no longer enjoys monopoly in the market and the significant profitability that it used to in the past decades. Competition has come from several local and international companies, which have managed to offer alternative products and services to the market thereby reducing the market share previously enjoyed by Time Warner (Napoli & Dwyer, 2018). The reduced market share of the corporation has led to financial challenges rocking Time Warner. Therefore, the chances of expanding into other markets and advancing the operations in regards to innovative capacities have reduced. Additionally, Time Warner was forced to merge with AT&T itlacks the financial capacity to stand on its own.

The third issue affecting Time Warner is the legal challenges that have affected its operations and merger with AT&T. The government had raised a legal concern that the merger would threaten competition and that it needed to be rejected and blocked (Carlton et al., 2019). However, the Federal Appeals Court upheld the merger and a go-ahead was given to execute the merger. Nevertheless, a potential legal challenge may be in the offing owing to the frequent cable internet interruptions the clients are compelled to go through. Chances are high that an aggrieved client may go to court to sue for the disruptions.

 

References

Carlton, D. W., Israel, M. A., &Shampine, A. (2019). Lessons from AT&T/Time Warner.

Napoli, P. M., & Dwyer, D. L. (2018).US media policy in a time of political polarization and technological evolution.Publizistik, 63(4), 583-601.