Case Studies in Strategic Management

6683 Words Jan 20th, 2013 27 Pages
CA/CWA, MEC/CEC, B.Com & B.Sc.

Master Minds

May 2007 – PCC Exam
DD is the India’s premier public service broadcaster with more than 1,000 transmitters covering 90% of the country’s population across on estimated 70 million homes. It has more than 20,000 employees managing its metro and regional channels. Recent years have seen growing competition from many private channels numbering more than 65, and the cable and satellite operators (C & S). The C & S network reaches nearly 30 million homes and is growing at a very fast rate. DD’s business model is based on selling half – hour slots of commercial time to the programme producers and charging them a minimum guarantee. For instance, the present tariff
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W – Weakness Rigid pricing strategy. Low credibility with certain sections of society. Quality of program’s is not as good as compared to C & S network

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O– Opportunities Infrastructure can be leased out to cable and satellite channel. Digital terrestrial transmission. Regional focused channels. Allotment of time, slots to other broadcasters. T – Threats Desertion of advertisers and producers may result in loss of revenues. Due to quality of program the reach of C & S network is continuously expanding. As the C& S network need the trained staff, some employees of DD may switchover and take new jobs. Best of the market-technology is being used by the private channels. (iii) It is suggested that the DD should adopt a middle path. It should have a mix of both the options. It should economized on its operational aspects and ensure more productivity in term of revenue generation and optimisation of use of its infrastructure. Wherever, the capacities are underutilised, these may be leased out to the private operations. At the same time quality and viewership of programmes should be improved. Bureaucracy may reduce new strategic initiatives or make the organisation less transparent. Complete privatisation can fetch a good sum and may solve many of the managerial and operational problems. However, complete public monopoly is not
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