1. Media Management
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2. MME
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Competitive Strategy
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3. MME
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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)-
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4. Competitive Strategy What is the Organization Doing Now? 6/15/2018 MME

5. Competitive Strategy What is happening in the Environment?
MME
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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?
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6. Competitive Strategy What should the Organization be doing?
MME
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Competitive Strategy
What should the Organization be doing?
Strategic alternatives
What are the feasible strategic alternatives
Is the current strategy one of those
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7. Competitive Strategy What should the Organization be doing?
MME
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Competitive Strategy
What should the Organization be doing?
Strategic choice: which alternative best relates the company’s situation to external opportunities and threats
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8. Porter’s Competitive Strategy
MME
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Porter’s Competitive Strategy
Porter’s Five Forces (1985).
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9. Competitive Strategy: Porter’s Generic Strategies
Michael E. Porter (1980; 1985).
Competitive Strategy; Competitive Advantage

10. Porter’s Competitive Strategy
MME
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Porter’s Generic Strategies (1985).
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11. 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.

12. 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

13. Mass Marketing (Example)

14. Market Segmentation (Example)

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

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

17. Understanding the Media
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Team
Any questions?
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18. 6/15/2018
SWOT Analysis
                                                                                                    
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19. 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
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20. 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
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21. RTV 4420 lecture note 1
SWOT Analysis
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22. 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
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23. IO View & Resource-Based View of Strategy
From general easy examples to application to the electronic media

24. 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---

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

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

27. 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

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

29. 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

30. 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

31. 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.

32. Team
Any questions?