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Conduct Business Reasearch

In: Business and Management

Submitted By phoenixmlk
Words 1562
Pages 7
Preparing to Conduct Business Research: Final
Brent Byerly, Michelle Kendrick, Emily Maldonado
Jarell Reed, Ceasar Sciocia
Business Research RES/351
Stephen Grunig
University of Phoenix
18 May 2015

Research Question:
Research questions provide “means” to determine possible answers or solutions, within thoughts or to provide reasonable data
In today’s entertainment services and ever changing platforms, how do cable or satellite companies continue to be relevant without becoming obsolete technologically and over saturated with competition that it alienates the consumer?
Many research questions will arise, to see whether or not; our business provides the best in television programming. 1. Does Direct TV provide fast and friendly services? 2. Among other brand for commercial television, why do you choose Direct TV? 3. Do we provide television packages at a reasonable price? 4. On a scale from 1-10, with 10 being the highest, how would you rate our company within viewing purposes? 5. We also provide bundling services, is this something you as a customer like?
Data Analysis Approach
Data analysis refers to evaluating data using logical reasoning and to examine all of the data provided. There are so many tests that can be used to determine accuracy within a business in providing customers satisfaction through data. Within using the null hypothesis, our company will benefit. Parameter is a previous measurement of the sample of the population. Within the null hypothesis, there is no difference between the parameter and the statistic it is being compared too. Our business would love to use the null hypothesis, because we will not have to compare our customers to any other value. Within customer satisfaction, customers do not like to be compared, when they are paying for services. If we were to comply with the factors using the null test hypothesis, what would the results be?
Factors: Channels viewed, and non-viewed channels. The results will be as follows from below. Our company provides detailed packages. The null channels are the preferred channels one customer enjoys viewing. The alternative is provided, but they are rarely watched or viewed. Our customers are not being compared to when and what they view. We provide package entertainment within a variety. Certain channel will not be “cut off”, because they are not viewed.

Introduction Founded in nineteen ninety, Direct TV is the number one leading customer satisfaction in entertainment television which has made us a major success! We provide services to more than thirty-seven million customers. To an advantage, we provide over one hundred and ninety channels for viewing. We have low price entertainment packaging that can be tailored to any customer and their entertainment needs. Direct TV is headquartered in El Segundo, CA. We have corporate offices in New York, NY, and in Denver, CO. Our broadcast centers are in Castle Rock, CO, Long Beach, CA and in Marina Del Ray, CA. Trending and shaping the market with stock information; studies shows earnings growth for last year was a + 4.45%. Earnings for this year was a + 11.03%. For proceeding in factual growth, it shows, in the next five years an increase of + 2.05%. Our revenue growth last year was +4.74%. Our P/E ratio was 16.7 and price and sales were 1.32. Direct TV currently broadcasts channels in one hundred and ninety seven markets. Direct TV announced that it is combining with AT&T to create a leading provider of content across mobile, video & broadband platforms in May 2015.
Hypothesis
The possibility of ATT and Direct TV merging together could bring many new and interesting changes for current and future customers of Direct TV. Direct TV’s main competitor aside from cable providers is Dish. Dish has been trying to steal loyal customers promising them more savings if they subscribe. However, if ATT and Direct TV are able to merge with FCC approval, customer savings could result with bundling. For example, internet and satellite bundled together into one package would bring discounts that customers do not normally see. Yet, if the FCC decided to not allow the merger to go forward customers would be stuck with the current price that they would have with Direct TV and the current internet provider. This would leave cable television providers at an advantage as they are able to bundle internet, cable, and telephone services into one convenient package. If ATT and Direct TV merge the savings would be transparent for customers. Direct TV currently has 20.3 million customers. This number could ultimately double the amount of customers for Direct TV if they go ahead with the merge. The possibility can bring favorable gains for shareholders; bringing two billion dollars in free cash flows. The technology that would go hand in hand would also be tremendous for current ATT mobile phone customers. The reasoning behind this would be the video content streaming on smart phones. The streaming video would have better quality and less drag while watching.

Sampling size
How will the sample size be determined?

When considering the size of the sample group the first thing to consider is the population in the area of where the research will be conducted. Direct TV has a current 20.3 million customers and if the number is to double with an ATT merger, the sampling size should be around forty percent of its current subscribers. As a company we take tremendous care in gathering data to make the right decision when making any major decision. Direct TV was able to gather the sampling size percentage with a calculator, taking the current amount of customers and estimated future customers together.
Question: How does this transaction benefit DIRECTV Customers? And why?

This combination brings together two leading companies with opposite strengths and scale in mobility, video and broadband services. The combined company will cover 70 million customer locations with its broadband development and be a superior alternative to cable with a better customer experience for services, customer needs and satisfaction.
Together and well-positioned, AT&T and Direct TV will have the capability to meet the evolving video and broadband needs of the 21st century marketplace.

Question: How do federal regulations effect this merger and also the acquisitions of other media conglomerates?

U.S. Federal Communications Commission had ongoing federal cases about access to sensitive cable industry documents which complicated and slowed the review process.
A Similar merger between Time Warner and Comcast fell to scrutiny once it was realized that Time/ Comcast would have 40 percent of the American market and be directly correlated with how content providers reach millions of paying subscribers. Comcast would gain and unparalleled control over consumers' access to video delivered by other competitors on the Internet. In contrast, AT&T covers about 17 percent of the broadband market, and Direct TV does not offer Internet access.

Question: What competitive advantage does this give AT&T in its current market? AT&T would have a jump start in entering the lucrative and high-growth Latin American pay-TV and broadband market that has been established by Direct TV, high-speed broadband service will expand to an estimated to 15 million customer locations, mostly in rural areas. This new commitment is on top of the fiber and Project VIP broadband expansion plans AT&T already implemented.

Question: What is the possible future for consumer entertainment as it relates to the cable, broadband, satellite industry?

Given the distribution scale of both Direct TV and AT&T these combined companies will better meet the future viewing and programming preferences of today’s market. The consumer has more use for on-demand video services like Netflix or Hulu or set top units such as Roku, streamed over a broadband connection. The advancement of entertainment mobility makes viewing preferences on any screen - mobile, TV, laptop, tablet possible and now AT&T/ Direct TV have another avenue for advertisement and product development.

What ethical considerations must you take into account?
One of the most ethical issues that will be face by our company is advertising. The reason advertising becomes an issue is because of the various group we need to target and the different ethnic backgrounds. As we promote our product in so many different industries, there will be critics that will question whether our marketing is geared as manipulative to certain market segments. Will our products and cost be hidden to mislead those markets based on socio- economic background or geographic location? (Taking into account the new expansion in the Latin American markets in South America and other under developed countries). AT&T/ Direct TV will continue to be an equal opportunity employer with high standard for our employees which we will maintain in all areas of expansion. We are also dedicated to providing and improving our customer services as to eliminate the question “Why is my service interrupted when there is a change in weather?”

Purpose/Conclusion
This research has given us abundant information on how mergers between different communication and entertainment mediums are affective in developing new markets for current services provided by cable, broadband and satellite. It also makes headway into new technology and development in alternative entertainment streams. This research also shows us how some acquisitions are not in the best interest of serving the American market and certain monopolizations can be harmful to the overall industry.

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