Strategies of the Top Six Firms

Topics: Mass media, Universal Music Group, Vivendi Pages: 29 (8677 words) Published: December 27, 2012
“Strategy of the Top Six Firms”

“There are two broad strategic objectives that each of these companies is engaged in: content and distribution. In terms of content, every firm has either developed or acquired significant content brands well known to consumers.”

“Radio was the first to fall victim to their crystal-gazing; when it first made its appearance many mistakenly believed that the sale of the radio set and not advertising sales would be the main source of revenue (Schulberg, 1994). Later on, when it had achieved huge audience ratings, many augured the demise of newspapers, up to the point that in some countries it was ruled that news bulletins could not be broadcast until early evening; however, radio’s development coincided with a period of expansion of the newspaper industry.”

“Some economists, such as Keynes, have stated that analyses of the future lack a scientific basis so there is no sense in working out long range strategies; what can be done is prepare companies to make the most of opportunities and deal with immediate challenges (Keynes, 1936).”

“One of the most important changes, as far as the public is concerned, is that there is now more spare time. For example, in 1850 American adults spent 70% of their disposable time working (excluded from this percentage is the time spent on eating and sleeping); in 2000, this percentage had dropped to 18% (Wolf, 1999).”

“Also, citizens of the most developed countries are increasingly more interested in and spend more money on acquiring information and entertainment products and services.”

“other sectors have also added leisure and entertainment complements to their basic business: many air-lines, restaurants, shopping centers and bookshops have come up with various ways of entertaining their clients”

“in-flight films…coffee shops in book shops”

“some companies have sold off a good chunk or all of their assets unrelated to information and entertainment in order to concentrate on managing these services: Westinghouse has become Viacom-CBS, Géneral des Eaux was transformed into Vivendi-Universal, Pearson got rid of its porcelain business and financial services”

“Almost all the mass media are developing towards short and simple narrative structures: newspapers have more color, photographs and the use of graphics and each news piece contains fewer words; television news include more news items which are shorter in length and more spectacular”

“As Gilder (1994) explains, “television is not vulgar because people are vulgar; it is vulgar because viewers share similar basic interests and differ profoundly in their higher preferences”.”

“the public prefers contents which they can identify with.”

“the public seek contents close to their own lives.”

“The weakest point of rival companies is often found in their personnel’s lack of motivation. Companies usually start off with a small staff all sharing the same goal. They feel close to the manager heading their team who proposes attractive and challenging goals; the company’s flexibility and internal cohesion means that it grows; but, as time goes by, the initial corporate objectives become less clear, management is not so close to their staff as they used to be and those who are passed over for promotion begin to feel neglected.”

“Often, ethical mistakes made by owners or management can add to employees’ loss of motivation: when training is not invested in, when there are unjustifiable discriminations and when the chief executives seem to be obsessed by increasing profit margins at any cost, personnel begin to lose interest in the company’s projects.”

“Disillusioned teams are a weakness which can have serious consequences for media companies who require talent, initiative and commitment from their best staff to ensure quality products and services (Rheinberg, 2000). This real Achilles’ heel is the reason behind many organizations’ decline.”

“Thus, a paradoxical situation arises:...
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