Abstract

The case discusses the transformation of Hughes Electronics Corporation (HEC) from a defense communication systems, weapons and aircraft manufacturer into a leading digital media and communications service provider. After taking a look at the company's history, the reasons underlying its decision to shift its focus to the media and communications business (under GM's ownership) are explained. Thereafter, the case describes how HEC structured itself into four divisions and the various strategic alliances it entered into, to grow and expand. It also discusses the products and services launched by the four HEC companies to strengthen themselves in their respective industries. The restructuring efforts undertaken in 2000 to increase the focus on digital media and communications services are described. The case ends with a discussion on the future of HEC in light of its strategic alliance with the media giant News Corp in late 2003.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The strategies adopted by a MNC to shift to a new business domain.

Keywords

Hughes Electronics Corporation, HEC, defense communication systems, weapons, aircraft, manufacturer, leading digital media, communications, service provider, history, media, communications business, four divisions, various, strategic alliances, grow, expand, products, services, 2000, digital media, News Corp