Lifestyle parallelism
Technological development
Increased Market Size, Return on Investment, Economies of Scale and Learning, Location Advantage
Entry Modes for a Global Media Market New Entry (Greenfield venture) Exporting/Licensing Cooperative Partnerships
Cross-border Mergers and Acquisitions International Joint Ventures (IJV)
Symbiotic Relationship between media content and distribution drive complementary resource alignment
Cultural sensitivity and understanding of the regulatory environment encourage related geographic diversification to take advantage of the acquired Local knowledge and relationships
9 To gain access
Speedy access in more regulated markets Access to multiple media outlets
9 To reduce risks/costs
Economies of scale is especially important for content product
Commitments
Decisions
Actions
The pace of change is relentless.... and increasing Traditional industry boundaries are blurring, such as...
Computers Telecommunications
Traditional sources of competitive advantage no longer guarantee success New keys to success include:
Flexibility Innovation Speed Integration
ResourceResource-Based Model
Resources Capability Competitive Advantage An Attractive Industry Strategy Implementation Superior Returns
External Environment
What the Firm Might Do
Sociocultural
Sociocultural Segment
Technological Segment
Global
Monitoring Detecting meaning through ongoing observations Forecasting Developing projections of anticipated outcomes
based on monitored changes and trends
Assessing
Determining the timing and importance of environmental changes and trends for firms' strategies and their management
Competitor Analysis
The followfollow-up to Industry Analysis is effective analysis of a firm firms Competitors
Competitor Analysis
Assumptions What assumptions do our competitors hold about the future of industry and themselves? Current Strategy Does our current strategy support changes in the competitive environment? Future Objectives How do our goals compare to our competitors goals? Capabilities How do our capabilities compare to our competitors?
Response
What will our competitors do in the future? Where do we have a competitive advantage? How will this change our relationship with our competition?
Resources
What a firm Has...
Tangible Resources
* * * * Financial Physical Human Resources Organizational
What a firm has to work with: its assets, including its people and the value of its brand name Resources represent inputs into a firms production process... such as capital equipment, skills of employees, brand names, finances and talented managers
Intangible Resources
* Technological * Innovation * Reputation
Capabilities
Core Competencies
Capabilities represent: the firms capacity or ability to integrate individual firm resources to achieve a desired objective.
McKinsey & Co. recommends identifying three to four competencies to use in framing strategic actions.