Comcast Market Segmentation

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The internet has become an integral part of our daily life. Whether it is used for work, education or daily life, seldom does a day go by without it. Furthermore, many governmental and none-governmental bodies keep track of internet penetration levels and some empowered bodies strive to achieve higher levels of penetration such as the Federal Communications Commission (FCC). The importance of internet penetration stems from its vital presence in day to day activities to the extent that it may have a large effect on macroeconomic measures and social wealth fair. From this concept, it is important to examine the market of Internet Service Providers (ISPs). However, this paper excludes wireless internet services in order to focus on providers of wired connections for strategic competition purposes. In this paper I will introduce major firms, define the ISPs market and explore the major basis of competition in the market. Major Companies Comcast Corporation Comcast was founded in 1963 as a single-system cable operation based in…show more content…
It is unlikely that those firms will integrate backwards; such activities are very different. However, network owners mostly integrate forward. However, network owners do not rely solely on ISP business, they also generate revenues from other sources such as telephone, advertisement and TV. Thus, it is conceived that the supplier bargaining power is strong. Furthermore, the current strong growth is alleviating most of competition pressure which is going to be more intense once the market reaches high saturation levels. [3] Regarding barriers to entry, the internet backbone plays and important aspect. Most of the current large incumbents own their own network which was used primarily for pre-internet era telecommunications or TV cable networks. This heavily reduced market entry by taking advantage of economies of scope.
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