Media Management 6/15/2018

MME 6/15/2018 Competitive Strategy 6/15/2018

MME 6/15/2018 Strategy Strategy involves a range of a firm’s decisions and activities that are enacted to fulfill the firm’s strategic missions and goals through the effective use of skills and resources, considering the opportunities and threats in its market environment. - Sylvia Chan-Olmsted (2006)- 6/15/2018

Competitive Strategy What is the Organization Doing Now? 6/15/2018 MME

Competitive Strategy What is happening in the Environment? MME 6/15/2018 Competitive Strategy What is happening in the Environment? Industry Analysis What are the key factors for competitive success What are the important industry opportunities and threats Competitor Analysis Society Analysis: What important government, social and political factors will present opportunities or threats? 6/15/2018

Competitive Strategy What should the Organization be doing? MME 6/15/2018 Competitive Strategy What should the Organization be doing? Strategic alternatives What are the feasible strategic alternatives Is the current strategy one of those 6/15/2018

Competitive Strategy What should the Organization be doing? MME 6/15/2018 Competitive Strategy What should the Organization be doing? Strategic choice: which alternative best relates the company’s situation to external opportunities and threats 6/15/2018

Porter’s Competitive Strategy MME 6/15/2018 Porter’s Competitive Strategy Porter’s Five Forces (1985). 6/15/2018

Competitive Strategy: Porter’s Generic Strategies Michael E. Porter (1980; 1985). Competitive Strategy; Competitive Advantage

Porter’s Competitive Strategy MME 6/15/2018 Porter’s Generic Strategies (1985). 6/15/2018

Competitive Strategy: Porter’s Generic Strategies Segmentation (Focus): Strategies to produce goods or services that serve the needs of a particular competitive segment. Differentiation: Strategies to produce goods or services that customers perceive as being different in ways that are important to them. Cost leadership: Strategies to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors.

Generic Strategies: Segmentation Hierarchy Niche A1 Custom A1 Segment A Segment A Custom A2 Custom A3 Custom B1 Segment B Segment B Custom B2 Segment C Segment C Custom C1 Mass Market Approach Multi- segment Strategy Single Segment Strategy Segment Niche Strategy Mass Customi- zation = Target Market

Mass Marketing (Example)

Market Segmentation (Example)

Generic Strategies: Differentiation Differentiation = superiority / uniqueness relative to competition Example: Two or more products and services that exhibit different features, styles, quality and sizes

Generic Strategies: Cost-leadership Cost-leadership = Broad target + lowest cost No-frills, standardized goods or services

Understanding the Media 6/15/2018 Team Any questions? 6/15/2018

6/15/2018 SWOT Analysis                                                                                                      6/15/2018

RTV 4420 lecture note 1 SWOT Analysis A SWOT analysis is a strategic planning tool for assessing organizational resources and evaluating environmental risks and opportunities A SWOT analysis is a method of studying organizational resources and capabilities to assess the firm’s strengths and weaknesses and scanning its environment to identify opportunities and threats 6/15/2018

SWOT Analysis S Strengths W Weaknesses O Opportunities T Threats RTV 4420 lecture note 1 SWOT Analysis S Strengths W Weaknesses O Opportunities T Threats 6/15/2018

RTV 4420 lecture note 1 SWOT Analysis 6/15/2018

SWOT Analysis (e.g.): CNN RTV 4420 lecture note 1 SWOT Analysis (e.g.): CNN Strengths Weaknesses Strong brand portfolio Loss of leadership position Global operations Vulnerability to Outside Environmental Factors Relationship with Time Warner Foreign Business Risks Opportunities Threats Advertising turnaround Competition Expansion into emerging markets Piracy Online medium FCC legislation on children's programming 6/15/2018

IO View & Resource-Based View of Strategy From general easy examples to application to the electronic media

Competitive Strategy: Industrial Organization View Based primarily on industrial organization concepts (industrial economics) IO view focused on the linkage between a firm’s strategy and its external environment A strategy is formulated to benefit from the exogenous factors Anybody who took intro to economics or micro-economics? Technology, industry, consumer, regulation factors---

IO View & Environmental Factors of Electronic Media Firms Technology Factors Broadband Technology Media Convergence Bandwidth Ability to solve technical problem

IO View & Environmental Factors of Electronic Media Firms Economy/Industry Factors Economic status Industry structure (e.g. competition) Strategic alliance

IO View & Environmental Factors of Electronic Media Firms Consumer Factors Consumer demand and preferences for converged media Consumer value: higher speed, mobility, interactivity, personal access, various application and multimedia services

IO View & Environmental Factors of Electronic Media Firms Policy Factors Globalization Political Climate Policy System Regulation

Resource-Based View of Strategy Each firm is a collection of unique resources that provide the foundation for its strategy Internal resources of a firm and the firm’s abilities to manage them are critical A firm’s resources are the foremost factors influencing performance and sustainable competitive advantage

Resource-Based View of Strategy What kind of resources? Property-based network resources Station ownership Affiliate contracts Top content property Knowledge-based network resources Management expertise New technology expertise Media employee pools

Resources (Resource-based View of Strategy) Reputation (or brand name) and financial resources are internal resources of a media firm. (e.g.) Google and Apple selected a strategies that best utilize the their resources (tangible or intangible) and capabilities.

Team Any questions?