CNN or Cable News Network is a news and media company based out of the USA and owned completely by the Turner Broadcasting Systems, the media offshoot of Times Warner. CNN pioneered the concept of a news channel that would work round the clock.
Prior to CNN, there was a concept of only thirty-minute slots and this network changed the manner in which news is organized and presented. In 1980, when the network launched for the first time news was taken care of by Ted Turner the founder and the network was responsible for a lot of breaking news like the launch of space shuttle Challenger, the rescue of Jessica Mc Clure. They were also responsible for the live reporting of the September 11th attacks and introduced the concept of live reporting for the first time.
Strengths in the SWOT analysis of CNN
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of CNN
- Wide viewership: The network has a wide viewership of around 8,55,000 viewers with reach to around 212 countries across the world. The network is rated at number 7 in ALL of cable in Total Day. The network also has the record for the highest deliveries ever among adults 25-54 and total viewers for the year 2017.
- Credible News reporting: CNN is a news network that has won the trust and confidence of their customers through consistent and reliable reporting and through live reports.
- Younger Audience: In comparison to its competition CNN caters to a younger audience. The average age of the CNN viewer is 25-54 almost five years younger than the average age in CBC and seven years younger than the average viewer of Fox News.
- Innovation in news: CNN is credited with a lot of firsts in news networks. It was the first to start around the clock reporting culture. CNN also for the first time did a live news update on the 9/11.
Weaknesses in the SWOT analysis of CNN
- Biased news coverage: CNN has been alleged to be biased in their coverage of the news and it has been often criticised as being favorably disposed towards the USA.
- Over sensationalizing: CNN has always been known to sensationalize stories and tweak news in order to increase their viewership. Though this is an allegation against most companies CNN has a lot to lose from the poor image.
- Speed and performance: News is very momentary and there is no existence for any breaking news for more than a few hours or days. After that, there has to be something new for the company to be in the limelight.This race for speed and performance often affects the actual quality of news.
- Weak infrastructure in emerging economies: In comparison to rich countries, emerging economies are still struggling from poor bandwidth and other infrastructure issues.Added to this is the ban imposed by certain countries on certain types or categories of news channels.
Opportunities in the SWOT analysis of CNN
Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalise to increase its returns. Some of the opportunities include :
- Increased importance for updated news: News is very current today and anything can become news today. This means that the range and scope of news in the world today is immense. This can create opportunities for diversification in terms of news based entertainment.
- More focus on smaller towns: With more infrastructure improvements initiated by various governments, today most houses have a cable network and television has been commoditized. Moreover, many news companies also broadcast through their websites and even offer live news updates through apps that can be accessed through smartphones. All these are increasing the scope of news channels.
Threats in the SWOT analysis of CNN
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- Competition: The company faces serious threats from competition. Some of their main rivals are CNBC, CNBC, Fox News, BBC etc.
- Focus on ethics: Countries and governments are being increasingly sensitive to what is being telecasted and how things are being portrayed by the media.This is increasing the need for ethics and sensitivity in news telecasts. Aspects of politics, social strata, religion, and ethnicity are all critical factors in news reporting. Keeping in mind the interests of all these groups and ensuring ethics is a tricky balance to maintain.