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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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efren arias erika garcia jacob huit ana montez eliza stapher denise thomas
Efren Arias

Erika Garcia

Jacob Huit

Ana Montez

Eliza Stapher

Denise Thomas

the british broadcasting corporation
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
bbc s general environment
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)
the competitive environment
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
bbc import programs
BBC Import Programs

TELETUBBIES

THE WEAKEST LINK

ABSOLUTELY FABULOUS

WHO WANTS TO BE A MILLIONAIRE

internal analysis
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.
conclusions about the internal analysis cont d
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)
swot strengths weaknesses opportunities threats
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
strategy formulation
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
strategy formulation1
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
strategy formulation2
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
alternative strategies
Alternative Strategies
  • Market Development
  • Partnership Strategy
  • Product Development
  • Backward Integration/Concentric Diversification
alternative strategy
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)
alternative strategy1
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
product development
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

implementation
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

implementation1
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
backward integration concentric
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

implementation2
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
evaluation
Evaluation
  • T.V. and radio ratings
  • Market share
  • Cost/Benefit Analysis
  • Quarterly financial review (revenue/loss)
  • Consumer response
effects of war

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)