Efren Arias Erika Garcia Jacob Huit Ana Montez Eliza Stapher Denise Thomas - PowerPoint PPT Presentation

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Efren Arias Erika Garcia Jacob Huit Ana Montez Eliza Stapher Denise Thomas

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  1. Efren Arias Erika Garcia Jacob Huit Ana Montez Eliza Stapher Denise Thomas

  2. The British Broadcasting Corporation • One of Britain’s most important cultural institutions • A dominant force in the Broadcasting industry (News entertainment and information) • Tries to differentiate itself with a wide variety of high quality programs (Teletubbies and Castaway) • Government-owned • Service provided for a license fee

  3. BBC’s General Environment The main strength is its growth potential and projection (TV, Radio, Internet) and the strong position in the UK compared to it’s competitors. • Social: One of the most important institutions in the UK • Technology: Holds a continuous commitment to improve their technology and means of security (Increased use of fiber Optics, and Digital systems) • Political: Deregulation in the telecommunication industry, and presence of the government in decision-making • Economy: Unification of the European Union, strong presence in the UK (basically no strong competitors)

  4. The competitive environment • Number one provider in Radio and T.V. • Granada and Carlton Communications offer competition, but do not represent a threat • In the world news market, CNN and BBC compete intensely for market share • Strong local presence, less dominant globally


  6. Internal Analysis • Management:The BBC’s management has undergone changes ranging from the Board of Governors to the Executive Committee. Some of these changes include: Director-General: Greg Dyke Chairman: Gavyn Davies • Marketing:About 30% of listeners, 7 million more than a year ago, now access the BBC world service through the growing network of nearly 2,000 local broadcasting station partners around the world. The BBC’s website earned exceptional growth, with usage rising 92% to 75 million monthly page impressions by March 2002. • Finance/Accounting:From 2000 to 2001, the BBC improved its efficiency and generated a positive net income in 2001. However, in 2002 the company incurred high operating expenses that were greater than the revenues it generated.

  7. Conclusions About The Internal Analysis (cont’d) • Operations and Management Guidelines: Projects have to adhere to technological standards, such as analog and digital TV transmittal, digital radio transmittal, and the matters of the law. • Research and Development: The BBC has introduced both new television and radio services in order to enhance its digital programs. (digital radio, phone/radio receivers, & handheld computers). • Computer Information Systems: CIS is an important tool that helps the BBC to become more productive, efficient, and competitive. (BNCS)

  8. S: Diversity of Mgmt Team Focused and strong objectives & goals W: Complexity of CIS technology Spending focus on analog not digital O: Deregulation of telecommunication industry Government owned T: Merging of competitors Lack of advertising SWOT Strengths, Weaknesses, Opportunities, & Threats

  9. TOWS Matrix 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. SPACE Matrix 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. Strategy Formulation

  10. BCG Matrix 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. IE Matrix 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.” Strategy Formulation

  11. 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. QSPM MATRIX 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) Strategy Formulation

  12. Alternative Strategies • Market Development • Partnership Strategy • Product Development • Backward Integration/Concentric Diversification

  13. Alternative Strategy Market Development • Expansion of digital radio in Africa and Asia • Take advantage of the high-growth rate of radio to increase customers • Increase profits • Disadvantage: • Limited access to digital radio (cultural, infrastructural, and economical factors)

  14. Alternative Strategy Partnership Strategy/Market Development • Joint Venture with Yahoo • Increase awareness of BBC’s current products/services in new geographic areas • Expected increase in sales • Disadvantages: • Initially, low return on investment is possible • Lack of appeal to American consumers

  15. Product Development • Develop innovative programs for T.V. (based on a cost-benefit analysis) • Internal Production (BBC) vs. External Production • Quality • Cost • Staff/personnel • Time of production (Reliability) Based on the SPACE Matrix, Grand Strategy, and QSPM

  16. Implementation • The goal is to increase profits and market share • Stage 1: Focus on local market • Marketing campaign/radio & web • Financial resources 20022001 2000 20022001 2000

  17. Implementation • Stage 2: Export product to potential markets • Adapt to culture & market variations • Language • Tastes & preferences • http://www.bbc.co.uk/spanish/cps/sunday.shtml

  18. Backward Integration/Concentric • Sell air time to other T.V. and radio stations (Travel Channel, People and Arts, Clear Channel) • Leasing air time to interested parties (suppliers and competitors) • Increase audience and target new markets (known brands) • Increase sales/profits with minimal or no investment Based on BCG and Grand Strategy Matrix

  19. Implementation • Identify potential customers • Establish relationships with world class suppliers • Develop contracts for air time • Quality criteria must be met for a contract to be accepted

  20. Evaluation • T.V. and radio ratings • Market share • Cost/Benefit Analysis • Quarterly financial review (revenue/loss) • Consumer response

  21. 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)

  22. Thank You!!!