Efren Arias

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

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The British Broadcasting Corporation

• One of Britains 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

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BBCs General Environment

• The main strength is its growth potential and
  projection (TV, Radio, Internet) and the strong
  position in the UK compared to its 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)

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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

5
BBC Import Programs
TELETUBBIES
THE WEAKEST LINK
ABSOLUTELY FABULOUS
WHO WANTS TO BE A MILLIONAIRE
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Internal Analysis

• Management The BBCs 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 BBCs 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.

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Conclusions About The Internal Analysis (contd)

• 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)

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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

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Strategy Formulation

• 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.

• TOWS Matrix
• This matrix uses BBCs 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.

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Strategy Formulation

• 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.

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Strategy Formulation

• 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)

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Alternative Strategies

• Market Development
• Partnership Strategy
• Product Development
• Backward Integration/Concentric Diversification

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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)

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Alternative Strategy

• Partnership Strategy/Market Development
• Joint Venture with Yahoo
• Increase awareness of BBCs 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

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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
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Implementation

• The goal is to increase profits and market share
• Stage 1 Focus on local market
• Marketing campaign/radio web
• Financial resources

2002 2001
2000
2002 2001
2000
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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

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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

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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

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Evaluation

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

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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)

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Thank You!!!