Introduction to Marketing
Assessment 1 (10%) Spotlight – Foxtel (from required text): Read the case – Foxtel – from chapter 2 of the required text.As per the text book: “Use the information in this Spotlight and any other necessary research to develop a SWOT analysis for Foxtel”
The SWOT analysis is a method used by organisations as a marketing strategy to better understand and identify positive and negative factors effecting the business, in present and in the future ( Elliott, Rundle-Thiele, Waller, 2010). The purpose of this essay is to develop a SWOT analysis for Foxtel, which is a pay-TV company that was first introduced to the Australian market in October of 1995 (Kim Williams 2009). Foxtel is currently leading the pay-TV industry with 1.55 million direct subscribers as of December 31, 2010 (Jordan Chong, 2011). The SWOT analysis will be used as a tool to determine and identify the internal and external factors that may be affecting Foxtel.
Figure 1. A Framework for a SWOT analysis (Elliott,Rundle-Thiele, Waller , 2010 p. 56)
Foxtel has not expanded into rural and regional areas of Australia In comparison to competitor Austar.
Lack of staff in regional areas
Has not targeted schooling programs as competitor Austar
Advertisement is targeted at young adults and young families, which excludes the elderly.
Popular series are few weeks behind USA, not up to date with air time in comparison to America.
Ahead in introducing technology in comparison to Free-view. E.g. I.Q , live pause and recording, downloading movies, and XBOX 360. Free services on the Internet for subscribers, customers can watch Foxtel on their laptops and computers. Good will / Reputation
Invests into Australian content and provides industry sponsorship to help Australian talents. E.g Major sponsor of the Walkley Foundation Young Journalist of the Year Awards. Partnership with Telstra and Optus
Expanding customer base and providing Foxtel services to new generation mobiles. Packages
Offered and tailored to individual & family tastes and preferences, where these packages can be bundled. Giving customers the choice of cheaper packages. Advertising
Mostly Internet & some T.V exposure, especially during the end of financial year and Christmas, with add campaigns such as ‘Happy EOFYS’ and ‘stay home and save with Foxtel’ Well Trained and Qualified Staff
The application, interview and training process is extensive. The applicant is required to have interview with two managers, group assessment and testing, and 4 weeks of training , if successful. Sales
Kiosks in major shopping centers and door to door sales for every day people, and sales to business such as the gyms and hotels.
FOXTEL SWOT ANALYSIS
Sites such as www.tv.blinkx.com offers library full of old and new movies/ series in all genres. All for free. Same air time as USA.
Most new HD quality movies are out before they hit the DVD market of Australia. Other sites are a fraction of the cost to become a membership in comparison to Foxtel contracts.
Austar controlling regional areas of Australia
Australian DVD market
Government funding to Australian networks such as ABC and SBS. Free View
15 free digital channels
9 network have ‘Go’
channel 10 - ‘One’ 24 hour sports
ABC Kids, educational children cartoon and programs with no adds. ABC and SBS programs that engage public opinions, views and values.
* Talks of merger with Austar
* Optus new deal with Foxtel on new generation mobiles.
Expand customer base.
* Telstra has...