Market-Based Strategies in Global Tv: Exciting Opportunities in a Fast-Expanding Market

Topics: Strategic management, Porter generic strategies, Balanced scorecard Pages: 12 (4112 words) Published: September 7, 2009
“I, the undersigned, hereby declare that this assignment is my own work. It has not been previously submitted for any other examination.” List of Figures Page
{text:bookmark-start} Executive Summary {text:bookmark-end} {text:bookmark-end} The television industry comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public. These establishments also produce or transmit visual programming to affiliated broadcast television stations, which in turn broadcast the programs to the public on a predetermined schedule. Programming may originate in their own studios, from an affiliated network, or from external sources. North America (US and Canada)

The current state of Affairs in the US is that the US has long dominated international trade in television programming. In the US, TV broadcast by three main traditional channels (ABC, NBC and CBS). These channels are available free across the airwaves. The programmes are paid by advertising. The US market fragmentation produces new industry linkages due the launch of a large number of cables and satellite channels offering news, live sport, new films and specialist music to their subscribers. In fighting competition, the main traditional networks broadcasters developed links with the six leading film companies with the objective to sustain competitive advantage. In this case, sustainable advantage is strong when a company owns executive rights to popular films such as James Bond series. To pursue the battle the film companies have also acquired the other enemy: cable and satellite channels. Europe (European Union)

Asia-Pacific (China and India the largest)
Summary Theoretical Approach
In answering this case, I have chosen to use strategic management tools, Porter's Five Forces, Value Chain and Balanced Scorecard frameworks. These tools are linked and inter-act each other in a wide circle of business in context. Porter's Five Forces and Value Chain both help strategic managers to make decision on the basis of organizational external environment and internal analysis. The two frameworks are especially valuable for managers to develop and implement long-term strategy for organizations so as to build and maintain competitive advantages in the long run. And Balanced Scorecard can ensure and monitor the executions of strategy made by managers in a set of well-structured measures. {text:bookmark-start} {text:bookmark-start} Do Porter’s generic strategies provide any useful insights in structuring the strategic opportunities in global TV? Think carefully about the criticism before you answer this question. {text:bookmark-end} {text:bookmark-end} {text:list-item} Cost Leadership - By being a cost leader, a company would try to outperform its competitors by offering products and services at a lower cost. The cost leader is expected to withstand the pressure from the increasing competition and achieving economies of scale. Companies following this strategy place emphasis on cost reduction in every activity in the value chain. It is important to note that a company might be a cost leader but that does not necessarily imply that the company’s products would have a low price. In certain instances, the company can for instance charge an average price while following the low cost leadership strategy and reinvest the extra profits into the business (Lynch, 2003). The risk of following the cost leadership strategy is that the company’s focus on reducing costs, even sometimes at the expense of other vital factors, may become so dominant that the company loses vision of why it embarked on one such strategy in the first place. Differentiation - When a company differentiates its products, it is often able to charge a premium price for its products or...

Bibliography: {text:bookmark-end}
LYNCH, Richard. 2006. Corporate Strategy, 4th Edition. Cape Town: Prentice Hall.
STEYN, P.G. 2008. Module 4 Balanced Scorecard Based Corporate Strategy. Johannesburg: Cranefield College of Project and Programme Management. [Course Notes.] Tienie Elhers, Kobus Lazenby. 2007. Strategic Management, 2nd Edition. Pretoria: Van Schaik.
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