Market-Based Strategies in Global Tv: Exciting Opportunities in a Fast-Expanding Market

4098 Words Sep 22nd, 2009 17 Pages
{draw:g} DECLARATION: “I, the undersigned, hereby declare that this assignment is my own work. It has not been previously submitted for any other examination.” List of Figures Page {text:bookmark-start} {text:bookmark-start} Executive Summary {text:bookmark-end} {text:bookmark-end} The television industry comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public. These establishments also produce or transmit visual programming to affiliated broadcast television stations, which in turn broadcast the programs to the public on a predetermined schedule. …show more content…
in comparison with the existing competitors. Porter (1980) has argued that for a company employing a differentiation strategy, there would be extra costs that the company would have to incur. Such extra costs may include high advertising spending to promote a differentiated brand image for the product, which in fact can be considered as a cost and an investment. McDonalds , for example, is differentiated by its very brand name and brand images of Big Mac and Ronald McDonald. Differentiation has many advantages for the firm which makes use of the strategy. Some problematic areas include the difficulty on part of the firm to estimate if the extra costs entailed in differentiation can actually be recovered from the customer through premium pricing. Moreover, successful differentiation strategy of a firm may attract competitors to enter the company’s market segment and copy the differentiated product (Lynch, 2003). Focus - Porter initially presented focus as one of the three generic strategies, but later identified focus as a moderator of the two strategies. Organisations can make use of the focus strategy by focusing on a specific niche in the market and offering specialised products for that niche. This is why the focus strategy is also sometimes referred to as the niche strategy (Lynch, 2003). Therefore, competitive advantage can be achieved only in the company’s target segments by employing the focus strategy. The company can

Related Documents