Situational Analysis of Fm Radio Industry in India

Topics: Frequency modulation, Radio, AM broadcasting Pages: 1 (277 words) Published: August 11, 2009
{text:bookmark-start} Category Factors: Porter’s Five Force Analysis {text:bookmark-end} {text:list-item}
Bargaining Power of Buyers – Although the term buyer here is not valid. The consumer of the FM radio service has a large amount of influence due to the nature of the industry. {text:list-item} There are numerous equipment manufacturers which supply equipment to a radio station. Some equipment is highly specialized and is only manufactured by a handful of suppliers. The bargaining power of these suppliers is high due to the following factors: Low volume of sales.

Switching costs will be high for switching between suppliers. Differentiation of inputs exists because of quality.
Music production houses. The numerous music production houses in India provide songs to Fever 104. These production houses have high bargaining power due to: Differentiation of Inputs is caused due to the various songs that each production houses release. Impact of inputs on cost i.e. each music production house has a different rate per single play for each song. Radio can be considered as the cheapest form of mass entertainment. The consumer only has to bear the cost of the radio set and has no periodical expenses. Hence the relative price performance of substitutes is low compared to F.M radio. Radio is ubiquitous. It is also consumed for a longer period of time than any other entertainment form. Hence the switching cost for a substitute is quite high. {text:list-item}

Competition classified by Market share across Delhi, Mumbai, Bangalore and Kolkata. [data from exchange4media RAM] {draw:frame} Competition classified by the number of radio stations in operation [Group M report] {draw:frame}
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