News Corp
• Which external environment dimensions were most relevant in this case? Why?
The most important external environment dimension is the technological. News Corps is a media company which has to evolve and adapt with all technological evolutions. The second is the socio-cultural factor, nowadays media are essential, technologies are progressing really quickly. People have higher expectations about communication and entertainment so companies have to satisfy the customers and respond to his needs. There is also the demographic factor, many people in the world are interested by entertainment media and consumers are more and more numerous, for instance people living in rural areas. About the economic factor, people in the world spend more and more money in media and communication which is favorable for News Corp. These four factors are most relevant in that case.
2. In which industry does DirecTV compete? Is this an attractive industry(Porter)?
Threat of New Entrants (LOW) Extremely high fixed costs exist to enter the market.Satellite broadcasting competitors must either purchase or lease satellites. Ground-based cable TV competitors need lines in populated areas Bargaining Power of Buyers (LOW). Service pricing is fixed and not negotiable by consumers. Small businesses also have limited price negotiation power as there are fixed prices for business service packages. Large customers, such as airlines, have the ability to influence prices for services, but these services represent a small share of DTV’s overall revenue. Bargaining Power of Suppliers (MEDIUM) In some occasions content producers have the ability to set prices. Impact on providers varies depending on the nature of the content and the pricing terms. DirecTV’s largest capital expenditure, satellites, are owned by the company rather than leased, minimizing supplier power. The content is mainly provided by the major networks and their local affiliates (ABC, NBC,FOX, CBS), and premium movie channels
The most important external environment dimension is the technological. News Corps is a media company which has to evolve and adapt with all technological evolutions. The second is the socio-cultural factor, nowadays media are essential, technologies are progressing really quickly. People have higher expectations about communication and entertainment so companies have to satisfy the customers and respond to his needs. There is also the demographic factor, many people in the world are interested by entertainment media and consumers are more and more numerous, for instance people living in rural areas. About the economic factor, people in the world spend more and more money in media and communication which is favorable for News Corp. These four factors are most relevant in that case.
2. In which industry does DirecTV compete? Is this an attractive industry(Porter)?
Threat of New Entrants (LOW) Extremely high fixed costs exist to enter the market.Satellite broadcasting competitors must either purchase or lease satellites. Ground-based cable TV competitors need lines in populated areas Bargaining Power of Buyers (LOW). Service pricing is fixed and not negotiable by consumers. Small businesses also have limited price negotiation power as there are fixed prices for business service packages. Large customers, such as airlines, have the ability to influence prices for services, but these services represent a small share of DTV’s overall revenue. Bargaining Power of Suppliers (MEDIUM) In some occasions content producers have the ability to set prices. Impact on providers varies depending on the nature of the content and the pricing terms. DirecTV’s largest capital expenditure, satellites, are owned by the company rather than leased, minimizing supplier power. The content is mainly provided by the major networks and their local affiliates (ABC, NBC,FOX, CBS), and premium movie channels