Marketing Analysis on Sky

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  • Topic: British Sky Broadcasting, Rupert Murdoch, Sky Television plc
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Marketing 1, baaf 2|
Analysis of the Macro Environment|
Using the PESTEL Analysis of Sky|
|
Keith McCarthy|
11/18/2011|

Lecturer: Lorraine Dunne|

Introduction3
Literature Review3
Macro Environment3
Political3
Economic4
Social/Demographic4
Technological4
Environment4
Legal4
Skys PESTEL Analysis5
PESTEL Analysis Diagram_______________________________________________________5
Political Factors:5&6
Economic Factors6
Social Factors6&7
Technological Factors7
Environmental Factors8
Legal Factors8
Conclusion8
Bibliography9

Introduction
The organisation I have chosen to carry out an analysis of the macro-environment is Sky. British Sky Broadcasting Group plc is a satellite broadcasting broadband and telephony services company headquartered in London, United Kingdom with operations in the United Kingdom and the Republic of Ireland. According to Manchester Evening news (2010) BSkyB was formed in 1990 when Sky Television and British Satellite Broadcasting merged together. BSkyB has over 10 million subscribers in the United Kingdom which makes it the largest pay TV broadcaster. The merger saved Sky financially as Sky had very little major advertisers compared to British Satellite Broadcasting who had the far superior advertising contracts and equipment, as a result when Sky inherited these it solved the financial problems. The advertising contracts generated vast amounts of revenue for the newly branded BSkyB this allowed BSkyB to take advantage of the growth of newer and improved satellite technology. This newer technology would allow Sky to reach larger audiences and provide a vastly improved channel selection. Eventually with the increase of the channels the quality and the popularity increased to new heights with this sky was able to expand and acquire lucrative licensing deals which would cement Sky’s place at the top of the broadcasting sector indefinitely. Sky has exclusive rights to programming but it has also introduced new innovative ways in which to broadcast its wide selection of programming. For example, digital television, interactive television, HD television and also recently 3D television. Sky has set the bar when it comes to the quality of entertainment services and the main company when pioneering new services. In this macro environment I will be analysing how Sky thrives. Literature Review

Macro Environment
The macro environment refers to a broad range of social forces, external to the business, that influence its activities (Rogan 2011). The macro environments are largely issues that a company cannot control. Most organisations need to observe macro environment to understand how they need to adjust to it. PESTEL analysis systemises an examination of the Political, Economic, Social, Technological, Environmental and Legal elements of the macro environment. Political

Marketing decisions are strongly affected by developments in the political environment. The political environment consists of laws, government agencies and pressure groups that influence and limit various organisations and individuals in a given society. (Kotler et al., 2005). Political stability is important to business. Ireland has a stable political environment and one that is generally supportive of investment and job creation. The aspects of the political environment of most relevance to business are the laws enacted by the Oireachtas and the various government agencies involved in the support and development of the business enterprise. The companies Acts (1963 and 1986), the Sale of Goods and Supply Services Act (1980) and the Consumer Information Act (1978) are all examples of legislation that has a direct influence on business and marketing practice. (Rogan 2011) Economic

Markets require buying power as well as people. The economic environment consists of factors that affect consumer purchasing power and spending patterns. (Kotler et al., 2005)....
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