Efren Arias Erika Garcia Jacob Huit Ana Montez Eliza Stapher Denise Thomas. The British Broadcasting Corporation. One of Britain’s most important cultural institutions A dominant force in the Broadcasting
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industry (News entertainment and information)
The main strength is its growth potential and projection (TV, Radio, Internet) and the strong position in the UK compared to it’s competitors.
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Some of these changes include: Director-General: Greg Dyke Chairman: Gavyn Davies
Diversity of Mgmt Team
Focused and strong objectives & goals
Complexity of CIS technology
Spending focus on analog not digital
Deregulation of telecommunication industry
Merging of competitors
Lack of advertising
This matrix uses BBC’s strengths, weaknesses, opportunities and threats to show the different possible strategies and solutions
These strategies then can be implemented to help the overall performance and profitability of the organization.
The BBC falls in the IV quadrant, which indicates that the company should pursue a Competitive strategy. The firm should consider the following alternative courses of action: horizontal integration, market penetration and product development.
Radio: 52.6% market share, 47.4% growth rate; considered a “STAR”
TV: 37.1% market share, 62.9% growth rate; rated as “CASH COW”
BBC Online: “QUESTION MARK” This is because it has a very low market share, but retains a high growth rate percentage.
UK: should pursue a hold and maintain strategy including market penetration and product development
US/WORLD: harvest or divest strategies should be implemented. They will probably never harvest or divest the world portion because this is used for “political presence.”
GRAND STRATEGY MATRIX
The BBC lies in Quadrant I, which indicates it is part of a rapid market growth industry while maintaining a strong competitive position.
Compared to its rivals in the UK, the BBC has more financial strength giving it an advantage over competitors. Globally, the company can make use of its resources/subsidiaries allowing an increase in customer base.
The first matrix we formulated focuses on Market Development, which is split up into the geographic regions the BBC operates in.
The last two matrices examine Horizontal Integration and Product Development which are split up into product divisions (TV, RADIO, BBC ONLINE)
Partnership Strategy/Market Development
Based on the SPACE Matrix, Grand Strategy, and QSPM
Based on BCG and Grand Strategy Matrix
Effects of War
Continuous war updates
More people are watching TV and listening to the radio, increasing ratings
Live action coverage and interviews with combatants is capturing audience
Increased expenses (staff/production)