In today's age of digital technology, a business strategy that worked in the “1990's” won't do any good for both small businesses and major corporations.
The term business strategy is self-explanatory. It means the method or approach employed by a company or corporation for the ultimate growth of their business.
For the most part, strategies of businesses are long terms as far as the business stakeholders are concerned.
A strategy employed by a business entity is hinged on company policy, which is designed to protect the interest of the company, which constitutes the continued generation of huge profits for the satisfaction of the stakeholders.
Top 1,000 corporations' top-brass executives have all the says in the implementations of the company's strategies, policies, and the day to day operations of their respective companies. Along with undisputable knowledge and experiences, these bigwigs have got advanced degree/degrees under their belts for the most part.
Business strategy should focus on consumers utilization of services
Sad to say, no amount of academic intelligence can ensure the steady progress of a major business much less maintains its rank on its field. It happens when those in the “pedestal-positions” of the company are either blind or in denial of reality that playing field is dictated by how consumers utilize products and services in this day and age.
Business strategy of some companies results in poor & insensitive handling of yesteryear's services today
Let's take one industry for which we consumers couldn't live without in age that preceded information technology. In this age, the Internet was not accessible by ordinary people. Facebook, YouTube, Twitter, Netflix, Iflix, etc., were not known. This industry is called Cable TV Service.
I discover today that this industry still implements strategy that they've been using since the decade 1990s. Let me tell you my story.
My bad experience of outdated business strategy
Loyal customer
For 9-years now, I've been a subscriber with three different accounts of a cable & broadband company, which among the Top 500 corporations in the Philippines. My cable-TV subscription started on Aug 17, 2009, while my broadband connection subscription began on Dec 14, 2010. To date, I have two separate broadband services subscribed to them — the old one in Q.C. and the new account is in Newport City, Pasay.
Inevitable happens
It's been 5-months now that I haven't been going home to my Q.C. apartment to which my cable-TV subscription is connected. There is no one living there for 5-months now, and I don't see myself to live there for another 5-months.
I have called and asked their customer-support through the 24-hour hotline to temporarily disconnect the cable-TV. The customer support told me that I have to pay 200 pesos monthly temporary disconnection fee. My monthly subscription is 299.
Here's where I ponder, and my ever perspicacious mind began to work and compute. I understand that maintenance is inevitable if my connection is temporarily disconnected. But something is not right here. And I sense both greediness and stupidity as well as lack of sense of reality.
Case in point
In today's digital era, a lot of people can have access to tons of shows through the internet. There's a bunch of prepaid plans tailored for different individual lifestyles.
I live alone, and it's natural for me to think that paying monthly for nothing is wasting money.
- It is no longer the 1990's when people had limited access to movies, TV shows, etc.
- Php 200 monthly temporary disconnection is a sure way of losing subscribers TODAY.
- It's no longer applicable today. In the '90s - YES.
- But today? A sure detrimental way of running one's business.
- Today's cable TV connection service is a thing that all people can live without.
- And more so in the coming years.
An industry that doesn't believe in valued customer
I have been a loyal subscriber to my service provider for 9-years. I am the only one watching TV when at home.
Even that, I don't watch TV regularly when at home. That's because of what I do on the internet, most of the time, and the internet's very offshoots which are similar media to regular cable TV:
- YouTube
- Netflix
- iFlix, etc.
And in case cable companies don't know some tv websites have the full list of popular American TV series that replay past episodes including those available in cable TV service.
Four realities that cable television companies fail to see in their faulty business strategy
There is one fact “cable-TV Service Providers” don't know and don't accept. Today, there are tons of media that compete with TV watching in our households.
I don't have to name them all. But one thing is for sure. They make Php 200 temporary disconnection maintenance so humongous and exorbitant.
I rather cut off my cable subscription permanently than giving away 200 pesos a month for nothing. Nine years and still charge me 200 pesos if I temporary disconnect my cable.
For me, that's absurd, inconsiderate, and greedy. I rather recommend to all people I know the very affordable prepaid plans on the internet for movies and TV shows.
Marketing strategists for cable TV subscriptions shall begin rethinking and start being smart
They're losing subscribers, and their competitions are all over on the internet with cheap plans, with some as low as free, of tons of shows for the taking.
I can watch on the internet my favorite 24-ORAS news from GMA7 30 minutes after its regular airing on cable.
In addition to these are the cheap subscriptions offered by major telecom networks which give us access to TV shows and movies.
I am a consumer, and I know better. And as a courtesy to the marketing strategists and top-level executives of cable corporations that still do this, I give this following piece as my “2 cents worth”:
They have no knowledge of what's really killing their business, yet it is right there under their noses. They better be SMART.
Screenshots credits to tubi
To them, I say, “Wait for 5-years by which time, they will have lost the large chunk in subscribers' base coming from my demographic.”
That said, I can make a case that Chinese business approach transcends short term greedy strategies among the few Filipinos.
If they don't know what I mean, they're really in the losing end of running operation in today's business landscape which 85% overtakes screens of mobile phones and devices.
To you my dear readers
If I may ask, what would you say of the chance of what I say in this post getting to a board meeting for a brainstorm if only to save a cable TV service company from sinking to the bottom of the TV/movie/video watching competitions in the coming years? Leave your reply below in the comment section.
Final thoughts
If a big broadband & cable TV corporation holds grandiose treats to events of its subscribers with tons of freebies and prices, gives away lots free movie tickets to movie premiers, and announce their so-called "giving back to charity," it is certain that they spend a large amount of money.
There are two facts here: One, all of those are for their own publicity that attracts more prospective customers to subscribe. Two, the company charges to its old and existing subscribers the money they spend. And for me, as a consumer, that would fail as a good business strategy.
Do you still watch cable-TV a lot? Let us know in the comment section below.
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