Case Study: Radio Teilifis Eireann (RTE)

The Pay TV industry in the US is changing rapidly. There are five main forces according to Porter that can describe this. The first four surround the fifth which is competitive rivalry. These forces help decide if a market is profitable. (Mindtools)

The Five Competitive Forces model use Information Technology as a tool for implementing change but technology become sophisticated nowadays in today’s business world where Information Technology is seen as a factor for change. In the end, the Five Competitive Forces model cannot be considered as outdated because each company is operation in a micro-network of Buyers, Suppliers, Substitutes, New Entrants and Competitors. This idea is valid for each competition based economy. However, it is important that one cannot solely rely on Michael Porter’s model of five forces when forming a business strategy and examining business

The task instruction is: Analyze Company G’s competitive environment utilizing Porter’s Five Forces Model of competitive forces. While headings below may provide some guidance for how to organize the paper, please refer to the recommended text (index topic: “Porter’s 5 forces model”), the learning community, and recommended web sites. As you will see from the reading, Porter’s 5-forces is a way to examine threats to a company’s success – which was competition imposes.

The television industry is one of the most rapidly changing media industries to date. Its evolution from black and white, to colour, to digital and now three-dimensional viewing, there is nothing slow about its development. Focusing particularly on commercial free-to-air (FTA) television, the FTA television industry plays a critical role in the Australian ecosystem. Due to its free delivery, it generates $3.2 billion per annum in economic and advertising surplus (Venture Consulting, 2015). This is why the value of commercial FTA television to the Australian public remains high whereby FTA television is watched by more than 14 million Australians daily (Free TV Australia, 2014). However, television nowadays is much more than a medium of entertainment and information. It is also used as a method for engaging in social interaction (Morely, 1986, p. 22), and this digital divide of interaction is what harms the television industry. The launch of streaming services not only confronts the traditional ‘linear’ TV format by allowing users to select what they want to watch and when they want it, it also broadens the offering to almost any device (Spooner, 2015). The research methods in the television industry despite its strength as a medium, must however, walk hand in hand with the fast progression of new technology and challenge the rise of digital omnivores.

Porter’s Five Forces was developed in 1979 by Michael Porter as a framework to assess and evaluate the competitive position of a company in an industry. It is based on the theory that there are five forces which identify the attractiveness and competitive strength of an industry. It is helpful to gain an understanding of a firm’s current positon and the position that the firm may look to capture in the future. Porter’s five forces are also used to

Over the centuries, the media has played a significant role in the shaping of societies across the globe. This is especially true of developed nations where media access is readily available to the average citizen. The media has contributed to the creation of ideologies and ideals within a society. The media has such an effect on social life, that a simple as a news story has the power to shake a nation. Because of this, governments around the world have made it their duty to be active in the regulation and control of media access in their countries. The media however, has quickly become dominated by major mega companies who own numerous television, radio and movie companies both nationally and

TVI is “the era of channel scarcity, the mass audience, and the three-network hegemony” (Pearson [Jenner, 2]). TVII is “ the era of channel/network expansion, quality television, and network branding strategies” (Pearson [Jenner, 2]). TVIII is “the era of proliferating digital distribution platforms, further audience fragmentation, and…a shift from second-order to first-order commodity relations” (Pearson [Jenner, 2]). While these distinctions are made, they are not necessarily set in stone. Hence the introduction of TVIV. Netflix “draws into question the previous notions of multi-platform as television, due to its independence from more traditional modes…” (Jenner, 3). Michael Curtin argues that there is an alternative means of understanding the current television trend, that of matrix media. “The matrix era is characterized by interactive exchanges, multiple sites of productivity and diverse modes of interpretation and use” (Curtin [Jenner, 4]). The entrance of Netflix as both a television producing and streaming system has led to the argument for TVIV, which “can be understood as an era of matrix media where viewing patterns, branding strategies, industrial structures, the way different media forms interact with each other or the various ways content is made available shift completely away from the television set” (Jenner, 4). Netflix does fit into TVIII’s guidelines in many ways, but its format is different from the existing

2. How Porter's Five Forces of Competition impact the company Porter set out his famous Five Forces model in chapter 1 of his 1980 Competitive Strategy: Techniques for Analyzing Industries and Competitors, which has now become the dominant paradigm for the "Structural Analysis of Industries." The model places supply chain forces on the horizontal access and market structure vertically above and below industry competition, which they all point to as the center of potential profitability (Hitt, Ireland and Hoskisson,

In the article, “The Five Competitive Forces that Shape Strategy,” Michael Porter argues that the five forces are an important element for managers and investors in the business industry. Porter stated that it is important to “understand the competitive forces, and their underlying causes” which many companies will use to determine if they will gain profit or not (Porter 80). Companies determine their profitability of the industry through the level of the force that they face. For instance, when the forces are favorable, most companies will be profitable. Porter gives a detail description of the five forces and explains the importance of each force. The five forces are the threats of new entrants, the power of the buyers, the power of the suppliers, the threats of substitute for products or services, and the rivalry among existing competitors. Porter believes that “a company strategist who understands the competition extends well beyond existing rivals will detect wider competitive threats and be better equipped to address them” (Porter 93). In other words, when strategists understand the different forces it will benefit them to make better decisions and to be ready to face the different challenges between competitors. In the article, Porter’s main goal is to present the importance of the five forces to the audience.

Porter’s Five Competitive Forces Analysis is a framework developed by Michael E. Porter of Harvard Business School for study of industry analysis by analyzing five competitive forces which define industry and its business strategy. These five competitive forces determine the competitive advantages, disadvantages and attractiveness or profitability of industry.

In his article “The five competitive forces that shape strategy“, Michael Porter (2008) updates and extends his “five forces” framework he first introduced in 1979 and which has influenced the academic and business research for decades. He reaffirms that “THREAT OF ENTRY”, “THE POWER OF SUPPLIERS”, “THE POWER OF BUYERS”, THE THREAT OF SUBSTITUTES”, and “RIVALRY AMONG EXISTING COMPETITORS” are the forces that shape every single industry, and a thorough understanding of such forces help analyze everything from the intensity of competition to the profitability and attractiveness of any industry. The framework has two dimensions; the vertical dimension that connects

“Porter’s five forces”: Introduction. “Porter’s five forces” is widely applied in today’s business world. Harvard Professor Michael E. Porter’s first HBR article “How competitive forces shape strategy” was published in 1979. It became revolutionary in the field of strategy. Porter’s subsequent work has brought big changes to the study of competitive strategy for corporations, regions, and nations. With assistance from his colleagues from Harvard Business School, Porter continues to update and extend his classic work, providing practical guidance for

It is undeniable that strategies of today’s organization lead to manage for Globalization because the world is becoming global market. Concerning the relevance for Today’s Business, it is questionable: Are Porter’s Five Competitive forces still applicable? Dälken (2014) argued that the question to what extent digitalization, globalization and deregulation affect Porter’s Five Competitive Forces can be answered as follows: Since Porter’s Five Forces relies on the principals of microeconomics; the challenge of the credibility of the model is limited. The mentioned three forces make network unstable, more extensive, and more dynamic.

Porter's Five Forces can be applied to particular companies, market segments and industries with the step-by-step analysis of market structure and competitive situation. First of all, when implementing this module in organizations, it is necessary to determine the scope of the market to be analyzed. Following, all relevant forces for this market analyzed and key forces are identified (Gerry and Kevan, P.117). Actually some organizational strategy and the longer-term goals are mainly based on or consistent with the key forces. Hence, it is not necessary to analyze all elements of all competitive forces with the same depth. Moreover, the key forces in the competitive environment will vary in different industry. Different forces take on prominence in shaping competition in each industry (Porter,

Michael E. Porter, associate professor published the article titled “How Competitive Forces shape Strategy” in Harvard Business Review in 1979. This article is retitled as “The Five Competitive Forces That Shape Strategy” and published in Harvard Business Review in 2008. Michael E. Porter developed the model of Five Competitive Forces which is defined as “Competitive Strategy – Techniques for Analyzing Industries and Competitors”. It has become a main device for analyzing an organizations structure in strategic practices.