Erron Case

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TNT case
Steven R. Koonin had a speech generally talking about what TNT is focusing on and TNT’s development. I’m going to illustrate my insight on TNT’s business.

TNT relaunched itself, with a slogan, "We Know Drama," which emphasized the channel's new focus on programming with drama and energy, such as sports and network TV dramas like Dallas, Law & Order, Charmed, NYPD Blue and so on. It is in direct contrast to sister channel TBS, which shows more comedy related programming, and by extension Cartoon Network, which showed exclusively animated programming at the time. TNT has out performed in recent years by doubling revenue of TEN and other television channels.

The reasons why TNT operated well can be attributed to both its business level strategy and corporate level strategy. TNT has successfully used the business level strategy to overcome the five forces and achieve competitive advantage. It’s overall cost leadership protects TNT against rivalry from competitors, allowing TNT to earn return, as well as providing more flexibility to cope with demands from powerful suppliers such as TBS, TEN, for input increases. Further more, TNT ‘s low cost position puts itself in a favorable position with respect to substitute products introduced by it’s competitors like DVD, theaters. TNT tends to be a differentiation-focus company focusing on dramas. This strategy narrowed its customer segmentations and save more expenses, but ignoring those customers who averse dramas. To some extent, TNT’s focusing on drama strategy is easily to be imitated by its rivalries.

Corporate level strategy at the same time leads to TNT’s success. It diversifies by joint ventures with TBS, TEN and other TV channels. Through this process, TNT has strengthening its bargaining position relative to suppliers. However, TNT’s over depend on its suppliers (because TNT doesn’t really product TV shows) also limited TNT’s initiatives. TNT carries popular dramas at the same time promote...
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