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The impact of globalization on the media
Strategic management case study analysis
The impact of globalization on the media
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BSB should have been able to identify potential competitors, particularly News Corporation. News Corporation was successful in US (in the US TV satellite industry), had experience transmitting television programs to Western Europe with a low-powered satellite and they already had presence in the UK with newspapers, which could allowed Sky to realize economies of scope. These economies of scope are even more significant if we take into account that News Corporation owns 20th Century Fox Studios. After purchasing 69% interests in SATV and renaming it to Sky Channel, this was a clear signal of a potential competitor to BSB. Adding to this, other signal was Murdoch’s personality, characterized by being aggressive and used to risk and make big bets. After all, he had bid against BSB to the British DBS franchise and lost, and given his personality, it’s normal that he would not go away after the first round. News Corporation is a global company and UK is one of the wealthier nations in the world, with high potential advertising revenue, which would make Murdoch want to be the leading player. BSB made another mistake when they focused more on technology and not on customers and costumer needs. Data doesn’t give significant information that costumers wanted higher quality TV (comparing to existent BBC or ITV for instance) as BSB assumed, and therefore thought that having the 15-year franchise of the high-powered DBS channels, the other medium and low-powered were not a concern. Nevertheless, competitors had the capability to overcome the entry barriers. This could be made for example with Astra that would launch medium powered satellite in 1988, and so, before BSB planned to start broadcasting. With medium-powered satellites, Sky coul... ... middle of paper ... ...heir technology and ability to execute, and were willing to support it. However, even though Sky did not have the financial capacity of BSB, their commitment to operational efficiency (lower costs) signalled that they were staying in the business for long. Sky launched earlier and leased the Astra satellite network, allowing it to overtake its rival, and BSB in the other way suffered from the burden of building costs and launching its own satellites, more ambitious and expensive technology and higher capital expenditure overall. Several public announcements of toughness were also made. This is again what we call a war of attrition. They were losing millions every week. The market only had space for one profitable company. Sources:Strategy and the Business Landscape, by Pankaj GhemawatBritish Satellite Broadcasting versus Sky Television. Harvard Business School Case
The main factors, which caused Qantas to change was that, the business was under government ownership until 1995, with a classical/scientific management structure. Meaning the business maintained a:
...epts of the transaction cost economics theory in order to understand the rationale for its structure along the vertical chain. It concludes this examination by suggesting that BlackBerry’s primary motivation for its strategic alliance with Foxconn, is to exploit Foxconn’s scale and learning economies. Foxconn’s motivation is to alter its structure along the vertical chain in order to align to its new business strategy. This provides further evidence to support Alfred Chandler’s theory that structure follows strategy (Chandler, A. 1998 cited in Besanko, D. et al. 2010).
Innovative products are quickly advancing thanks to technology. Sirius XM should use their resources to rapidly advance their new product the same way. Doing so will involve finding a niche market that could help influence the broader market. Additionally, a niche market could also help build brand loyalty. However, rapid growth might present challenges. The biggest challenge is not being able to keep up with the growth and demand. Technical compatibility is another challenge. Sirius XM needs to develop a new radio that is capable of receiving signals from both satellites. This would require more manufacturers to be involved in the engineering process. Moreover, customers would have to buy the new radio set to stream the new
Over the centuries, the media has played a significant role in the shaping of societies across the globe. This is especially true of developed nations where media access is readily available to the average citizen. The media has contributed to the creation of ideologies and ideals within a society. The media has such an effect on social life, that a simple as a news story has the power to shake a nation. Because of this, governments around the world have made it their duty to be active in the regulation and control of media access in their countries. The media however, has quickly become dominated by major mega companies who own numerous television, radio and movie companies both nationally and internationally. The aim of these companies is to generate revenue and in order to do this they create and air shows that cater to popular demand. In doing so, they sometimes compromise on the quality of their content. This is where public broadcasters come into perspective.
“Constructing Canada: Do we need a public broadcaster to enhance democracy?” written by David Taras, a professor at the University of Calgary and director of Alberta Global Forum. Taras reinstates the turning point of Canada Broadcasting Corporation (CBC) and their relationship with the Canadian parliament. He addressed on the developments and struggles Public Service Broadcasters (PSB), specifically CBC, encounter in order to continue to telecast. Lastly, he explains that PSB has a major role in maintaining the balance of power between the government and the mass media. PSB were created by the public for the public because a democracy can only happen if everyone cooperates.
Satellite radio is a technology that provides a radically new way to listen to radio. XM’s service makes use of advanced satellite capabilities and elaborates terrestrial receiver architecture to deliver a wide array of high quality radio programming nationwide. In early 1998, Robert Acker, director of strategic planning at XM, needs to develop a marketing strategy for this new radio service. There are several decisions that need to be made by the company in order to finalize the business plan. At fist XM needs to decide which of two business models to pursue, whether emphasis should be placed on charging customers a monthly subscription fee, or whether to rely more on earning revenue through advertising. In addressing this problem, management must consider the value that XM radio could propose for different consumer segments as compared with existing modes of radio (AM, FM) and in relation to its sole competitor in satellite radio – SIRIUS. Besides choosing a business model there is also a need to explore how best to approach and leverage manufacturer and channel partners, considering high unknown and high-risk technology. The purpose of this report is to analyze possibilities and outline possible recommendation on strategies for XM Radio. The following areas will be examined:
The protection enhances the ability of sustaining a business in a competitive marketplace for the long run. A firm should also undergo the DYB strategy to get rid of business units and other resources that do not add value to the company 's performance. It should adopt the GYB strategy, in which it would utilize the business opportunities lying at its disposal to its advantage. As a direct result of these two strategies, the company would gain a substantial competitive edge against rivals, as well as boost its profitability in the long run (Grimm, Lee & Smith, 2010). Knowing that today 's business environment is characterized by heightened competition that has led to extensive gaps between industry leaders and laggards, and that there are greater churns among the industry rivals, the GYB and DYB strategies are essential for any modern company. More importantly, the GYB strategy should be focused towards the increase of
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
After the mistake that Tesco did, they begin to loose their market share so, the competitors were trying to gain what Tesco was loosing, and they did. For example, Lidl had increased 10 percent in their sales, which is a big threat for Tesco because other companies are taking Tesco’s place in the market. In United States and Australia there are some stores that it sell very cheap products without looking at their quality. This was very tough for Tesco to handle because they cannot compete with this amount of discounts. In the same time, Tesco are trying to return to its position as before but, their competitors are using Tesco’s falling into their benefit by expanding more and making offers so they can get higher market share. For example Sainsbury, Asda, and Morrisons are investing more while expanding as well to take Tesco’s position and prevent Tesco from coming back as they were
In conclusion, the temptation for a firm to enter into a cartel or collusive agreement may not only be to fuel rising profits and sales. Some organisations may enter into these agreements not with the sole intention of boosting profits, this is clearly seen through the creation of OPEC which aids both consumers and producers development and stability. However seen above by the BA and Virgin Atlantic scandal this is the most common use for this agreement. The negative side of these types of agreements that are purely selfish and only help the producer are clear to see. Furthermore, the reason is clear as to why this agreement broke down, as the key component to any agreement is trusts and this is what Virgin broke, there was no foreseeable way this collusive agreement to continue.
Throughout the 1970s, concerted industry efforts at the federal, state and local levels resulted in continued lessening of cable restrictions. These changes, couples with cables pioneering to satellite communications technology, led to a pronounced growth of services to consumers and a substantial increase in cable subscribers.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
The main symptom and concern is that Scotts’ European sales had increased as expected, but margins had dropped, as well as synergies between the acquired companies were not working as expected. In addition, one of Scotts Europe’s largest customers was threatening to leave due to unacceptable service levels that might cause a domino effect to other large customers.
significant activities in the strategic way better than the rivalry firms (Lüsted, 2012). It is
When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable ...