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

4112 WordsSep 7, 200917 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…
If a company is using the differentiation focus approach, it would aim for differentiation in its target segment only, and not the overall market. This strategy provides the company the possibility to charge a premium price for superior quality (differentiation focus) or by offering a low price product to a small and specialised group of buyers (cost focus). Ferrari and Rolls-Royce are classic examples of niche players in the automobile industry. Both these companies have a niche of premium products available at a premium price. Moreover, they have a small percentage of the worldwide market, which is a trait characteristic of niche players. The downside of the focus strategy, however, is that the niche characteristically is small and may not be significant or large enough to justify a company’s attention. The focus on costs can be difficult in industries where economies of scale play an important role. There is the evident danger that the niche may disappear over time, as the business environment and customer preferences change over time. Economies of scale are usually considered with respect to the production activity and the ability to perform the manufacturing process differently and more efficiently at large volumes, thus resulting in a cost advantage. However, another important source is the ability to amortize (largely fixed) costs of other activities, such as

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