Of the seven general environmental factors discussed in Chapter 2, select the to
ID: 422219 • Letter: O
Question
Of the seven general environmental factors discussed in Chapter 2, select the top two factors in your opinion have the greatest impact on U.S. Broadcasting & Cable industry? Why are these two factors so important in this industry?
As we learned in Chapter 2, understanding the five forces that affect the attractiveness of an industry is important to identify the sources of competitive advantage. After you read the report on U.S. Broadcasting & Cable industry, which factors among the five have the greatest impact in this industry? In your opinion, do you think the U.S. Broadcasting & Cable industry is an attractive (profitable) industry to be in?
Explanation / Answer
Of the seven general environmental factors the factors with the greatest impact on the US broadcasting and cable industry would be political and regulatory environment and competition. The broadcasting industry as we are aware, is played with serious competition since the unprecedented advancement in communication technology. The mobile telephone and other smart devices have rendered television as an optional mode of entertainment and information. The competition is serious enough to not only restrict growth of the sector but also in danger its existence. It is due to this factor that the political and regulatory environment has significant importance for this industry as various policies and regulations can impose restrictions on competitors and become a major factor in the existence and performance of this industry. Due to dynamism and convergence of media industry and massive change in the methods utilised for access to audio visual content by consumers, the broadcasting industry is faced with uncertainty leading to inability to accurately forecast future demand and make relevant business plans. 2 and 2 the already serious existential crisis faced by the industry the constant emergence of new services and products due to technological advances render the market more competitive, due to unrestricted access and lowering of entry barriers. Due to unrestricted access and lowering of entry barriers. This is late too many players demanding policy interventions which protect the industry through creation of entry barriers which astringent in certain areas.
Among the 5 factors of porter's five forces the most important factor for the US broadcasting and cable industry is the threat of substitutes. The major issue faced by the broadcasting industry is the trek from substitute products offering similar or mostly much superior content and value to the consumer leading to the serious decline of the industry. Many of the players within the segment have understood the importance of adoption of Technology to enable sustenance and growth simultaneously airing content over multiple media. It has also lead to serious scrutiny of contents ensuring that all content produced is of superior quality capable of competing with the multitude of content available online, and easily accessible by the consumer. I think the US broadcasting and cable industry cannot be written off in spite of serious competition as recent policy changes and attitude depicted by the industry to fight Back rather than die down has clearly depicted a revival. Advertisement over television still remains a preferred option as not only is the outreach widespread eating shows the attention of the consumer with much more guarantee than the digital media. Also, it has been the preferred medium for family bonding and this mass appeal is difficult to beat. It has been proved time and again buy research data that most major events worldwide are preferably viewed on television rather than any other media. Content quality has surpassed itself and the percentage of viewership is ample proof, with all major players constantly making efforts, to identify and implement Technology within the sector, to further enhance value and create satisfaction among the consumers.
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