Introduction
The history of satellite TV goes back in 1962 when the first satellite television signal was relayed from Europe to the Telstar satellite over Northern America. Over time, this development has grown to be a gigantic industry in the delivery of TV signals all over the world. Satellite television is a programming model of delivering digital signals using communication satellite that are received by an outdoor antenna. Two of the leading companies in the provision of digital television services are DIRECTV and Dish Network. Started in the early 1980s, Dish Network provides satellite TV to approximately 14 million subscribers. Its mission is to be the best in delivering video anywhere, anytime (DISH Network, 2013). On the other hand, DirecTV offers over 285 channels and has over 32 million customers across the globe (DIRECTV, 2013). This paper compares and contrasts the corporate cultures of the two companies and the way they have evolved and affected each other.
How each corporate culture differs from the other
While both Dish Network and DirecTV deal in the same line of business, their corporate cultures are very different. At one end, there is a company that offers an awesome experience with a great community to work with, while at the other end, one may find a company where employees constantly complain of their working conditions. Over time, DirecTV has cultivated a good working environment characterized by daily cash prizes incentives, free lunches, monthly bonus decent pay, and accommodation of individual weaknesses, among others.
The company understands that human capital is the drive that propels the company to the next level. Additionally, the company has created a customer-centric environment where employees are passionate about making sure their customers get the highest-quality services. The management has instilled a sense of together and family, where customer service is the lifeblood. The company offers a learning environment while, at the same time, innovation is highly encouraged and appreciated (DIRECTV, 2013).
On the other hand, Dish Network has been rated as the worst company to work for in America because of its aggressive and mean culture. In this organization, employees have the pressure to deliver. As a result, employees work for long hours and there is mandatory overtime to meet deadlines. At times, the employees complain about the lack of paid holidays. Nevertheless, this culture can be traced back to the former CEO and co-founder Charlie Ergen, who remains the core of the company. Being the largest shareholder and having 90.4% voting rights, it is clear that Ergen can steer the company in whatever way he deems fit (Hannan, 2013). This leaves the CEO as well as the management with little power to initiate or change the corporate culture of the organization.
Ways that each unique culture has benefited by the other’s competition
DirecTV has benefited by the Dish Network competition in a number of ways. First, DirecTV has been able to make profits by pricing its products and services slightly above that of Dish Network while at the same time retaining the same number of customers. This is largely contributed by its unique culture of being customer-centric. Secondly, DirecTV has been able to lower its operational cost by reducing the employees’ turnover rate because of its culture of treating its employees as one large family. In such a situation, the recruitment and training cost has been kept on the minimal level, while maintaining experienced workers. Lastly, creating a learning environment has enabled DirecTV to remain relevant in the market (Briere & Hurley, 2011). This culture has led to innovation and employees have been able to come up with new and improved products and services.
From a different perspective, Dish Network has benefited by DirecTV’s unique culture as well. To start with, Dish Network is an aggressive and competitive organization where employees work round the clock to meet the company’s need. According to Straubhaar, LaRose, & Davenport (2012), this unique culture has prompted the company to be the fastest growing organization in the digital satellite TV industry. As a result, the company has been able to attract more subscribers and this has created a good basis for an upward trend on the company’s profits.
Secondly, the aggressive nature of the company has prompted the employees to climb faster and further, leaving the very best in the taskforce. Only the intelligent, energetic, and those driven to achieve become members of the Dish Network team. Lastly, the unique culture has led to strong leadership, where the leader is focused and has the interest of the company at heart. Being the founder of Dish Network, Charlie Ergen has steered the company into greater heights and it is his joy if the company moves beyond its current position (Waldman, 2011).
Ways of being sustainable upon changing the existing corporate culture
There is a need for Dish Network to shift from its current corporate culture and adopt a more contemporary governance approach. This is a holistic approach where all the stakeholders in the organization are put into consideration. While the company strives to satisfy its customers, it must put into consideration the needs of its employees because the human capital is the engine that propels any organization forward. The key to this approach covers being responsive to the employees’ opinions and acting upon them (Boone & Kurtz, 2009). On the other hand, DirecTV should be more aggressive not only in its marketing but also in the innovation of new and improved products. Kunz (2007) posits that the company should not relax and levy on the pool of loyal customers it has retained but must work hard to attract more. This together with providing superior products will guarantee sustainability.
References
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Hannan, C. (2013). Dish Network, the Meanest Company in America. BloombergBusinessweek, p. 1. Web.
Kunz, W. M. (2007). Culture Conglomerates: Consolidation in the Motion Picture and Television Industries. Lanham, MD: Rowman & Littlefield. Web.
Straubhaar, J. D., LaRose, R., & Davenport, L. (2012). Media Now 2012 Update, 7th ed.: Understanding Media, Culture, and Technology. Belmont, Australia: Cengage Learning. Web.
Waldman, S. (2011). Information Needs of Communities: The Changing Media Landscape in a Broadband Age. Darby, PA: DIANE Publishing. Web.