Eliminating The Middleman
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MTV vs Channel V in Asia
Current Strategies
MTV: global standardization (pre-1995), transnational (post 1995)
Markets: SouthEast Asia- only Thai own language (Phil, Thai, Indo, Sin, Mal), India, China, Japan, Korea, Taiwan/HK
Channel V: local customization (local offices, full independence)
Markets: China, India, Taiwan, Thailand, Korea, International (for other Asia countries)
PEST Analysis and implications
Political: Government regulations on TV channels particularly in Asia, censor board on RA content.
Implications: longer lead time, increasing expenses
Economy: Increasing spending power in Asia, improving economies
Implications: increasing sales of subscription, improve distribution channels.
Social: growing Asian population, globalization (western trend, youth culture)
Implications: more affluent culture, convergence of taste of preferences, declining local customization
Technology: Internet, better audio visual equipments
Implications: reach wider audience e.g. dvd, cd, tv, online broadcasting,
Porter Five Forces and implications
Potential entrants: medium to high barriers to entry. Huge investment to set up a TV channel. Strict government regulations esp in Asia (on tv content)
Industry competitors: among MTV and Channel V – duopolistic
Threat of substitutes: medium to high. People can enjoy music from other means, like dvd, cd, radio etc.
Bargaining of customers: teenagers to young adults, advertisers, satellite companies, tv channels (terrestrial).
Power: high for advertisers, satellite/tv channels, esp due to the fierce competition between the two.
Bargaining of suppliers: record companies, music producers, movie companies
Power: medium to high, although it is an important distribution channel, but there are many others, e.g. radio, cd, tv (non-music).
Competitor Analysis
Channel
React to competition
Core competencies
Capabilities
Goals/strategies
-Product differentiation to suit local preferences and taste
-conduct market survey
-increase distribution channels (tech)
-Strong branding
-first mover advantage
-international networks
-strategic