The video production industry has been a constantly growing market over the years with a total revenue of $43 billion in 2016 cite{ibisvideo}. However, this business has changed drastically in recent years with advances in technology and digital media. The availability of cheaper equipment, free editing software and pool of online information available on the subject matter, has transformed this industry completely. In order to be successful in this fast growing but changing industry, it takes more than lots of experience and the right equipment.
Nowadays a video production industry has many positives:
egin{itemize}
item Broad range of video services in demand (especially divers services) item Options to do all services via the Web
item …show more content…
Some companies offer specialized services whereas others offer general and diversified service. In any case, video services are in demand.
However, it is important to take in consideration some features that might play against business idea of video production:
egin{itemize} item A limited video production skill is a big set back. item Equipment investment and updating can prove cost-prohibitive cite[para. 5]{videomaker}. item Insurance, licenses, liability and other costs of doing business is usually high cite[para. 5]{videomaker}. item There is a big competition in the market. item Due to this high competition, having competitive advantage is very important. end{itemize} As indicated in business plan, the industry has a huge market. The biggest target market is television stations and movie producers. The key to be successful in the business is to capture this market and get ahead of …show more content…
Although form of delivery may have changed in recent years, video is still considered to be number one entertainment tool and very effective in delivering messages. The industry has one of the biggest client base including TV stations and big corporations. item Despite the industry 's attractive customer base and potential revenue, Michael 's business concept falls short on competitive advantage and providing a value proposition that meets current demands. Although a general video production service may meet the demand of mediocre clients, the trends show that there is a tendency towards specialization and specific technical knowledge. item The financial plan shows a good profit margin that can be considered for investment which is expected in the industry. However, some other financial decisions have led to distortions on return on assets and liquidity ratios. Better management of cash flow with revising policies on credit sales can give a more favorable
Nowadays a video production industry has many positives:
egin{itemize}
item Broad range of video services in demand (especially divers services) item Options to do all services via the Web
item …show more content…
Some companies offer specialized services whereas others offer general and diversified service. In any case, video services are in demand.
However, it is important to take in consideration some features that might play against business idea of video production:
egin{itemize} item A limited video production skill is a big set back. item Equipment investment and updating can prove cost-prohibitive cite[para. 5]{videomaker}. item Insurance, licenses, liability and other costs of doing business is usually high cite[para. 5]{videomaker}. item There is a big competition in the market. item Due to this high competition, having competitive advantage is very important. end{itemize} As indicated in business plan, the industry has a huge market. The biggest target market is television stations and movie producers. The key to be successful in the business is to capture this market and get ahead of …show more content…
Although form of delivery may have changed in recent years, video is still considered to be number one entertainment tool and very effective in delivering messages. The industry has one of the biggest client base including TV stations and big corporations. item Despite the industry 's attractive customer base and potential revenue, Michael 's business concept falls short on competitive advantage and providing a value proposition that meets current demands. Although a general video production service may meet the demand of mediocre clients, the trends show that there is a tendency towards specialization and specific technical knowledge. item The financial plan shows a good profit margin that can be considered for investment which is expected in the industry. However, some other financial decisions have led to distortions on return on assets and liquidity ratios. Better management of cash flow with revising policies on credit sales can give a more favorable