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Growth strategy for NBCU... Outline by business segments (i.e. news, sports, Olympics, Media Works, television, movie studios, theme parks) on growing revenue and operating income in the near future - Research Paper Example

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Despite its leading position in the market, the company has been facing stiff competition from other companies such NewsCorp and others. This has forced the…
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Growth strategy for NBCU... Outline by business segments (i.e. news, sports, Olympics, Media Works, television, movie studios, theme parks) on growing revenue and operating income in the near future
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Growth Strategy for NBCU on Growing Revenue and Operating Income In The Near Future NBCU is one of the largest cable conglomerates in the world with vast investments in the areas of media and technology. Despite its leading position in the market, the company has been facing stiff competition from other companies such NewsCorp and others. This has forced the company to design different growth strategies for its diverse market segment (Hoovers Inc 33). This paper discusses some of the future growth strategies that the company is planning on adopting so as to improve its revenues and operating income.
Commence the production of solid original content (Plunkett 4). This is expected to improve the quality of programs and news at the company news segment.
Increasing cable networks through the acquisition of competing businesses. This will increase the economies of scale for the operations of the business hence reduce the cost of operation. Acquisitions will improve the level of service because there will be exchange of ideas.
Securing sports rights so as to increase coverage of sporting events over a long time period. The company is making plans of diversifying its sports events to include the NFL so as to attract more revenues.
Making partnerships with sponsors who will be covering the costs of casting sports events (Ford 11). Cost sharing will reduce the burden incurred in covering sporting events.
Increasing advertising premiums so as to improve on revenues.
Introduce broadcasting on mobile in order to increase the number of fans.
Increase coverage to include weekday games (Mermigas 11). This is to attract a large following since most of the Olympics are free on weekends.
Media Works
NBCU is making plans of increasing spending on cable networks since the projected revenue earnings for the company are expected to grow at an average of 7 percent.
Introducing new services including advertisements and subscriptions. This will be made possible with the recent acquisition of Comcast (Pennsylvania State University 11).
Comcast CEO Brian Roberts made an announcement that Comcast and NBCU will be partnering to form a new cable network. CEO recorded that the partnership is expected to generate a 5 percent growth in its advertising revenues.
Cut on costs in order for the company to reduce the negative profit margins arising from its operations.
Improving Olympic related activities in order to attract more revenues and operating income.
NBCU CEO has noted that the company is planning on changing its production model because of its increasing running costs.
The company is also planning on adopting an efficient production model so as to reduce on costs and maximize on revenues from TV productions (Nicolosi and Lewerenz 12).
Movie studios
Increasing demand in the coming years.
Targeting merging and acquisition in order to increase the number of subscribers above the current 23 million subscribers using their cable network (Hitt, Duane Ireland and Hoskisson 11).
Price reductions on existing videos
Investing in quality movie technology so as to improve quality of movies
Increasing market presence through heavy marketing
Theme parks
Introducing new services and improve on existing services
Purchasing Blackstone for $1.025 billion (Mike 22). This will increase ownership in the company to 100 percent
Introduce portable water as a result of increasing demand for water use by clients
Reduce consumption of fresh water by 20 percent in all the theme park sites
Installing water recycling plant in the US by 2015 (Clavé 13).
Work cited
Hoovers Inc. Hoovers Handbook of American Business. New York: Hoovers, 2007.
Clavé, Salvador. The global theme park industry. Chicago: CABI, 2007.
Ford, David. Ratings: “ABC World News” Continues to Show Growth; Cuts Viewing Gap with NBC to Smallest Margin in 6 Weeks. ABC News, 4th October 2011.
Hitt, Michael, Duane Ireland & Hoskisson, Robert. Strategic Management: Competitiveness & Globalization, Concepts. New York: Cengage Learning, 2010.
Mermigas, Diane. Innovation Could Make NBCU Olympics Pay for Comcast. Business Insider, Jun. 20, 2011.
Mike, Farrell. NBCU Consolidates Theme Parks: Buys out Blackstone for $1.025 billion. Multichannel News, 10th December 2011.
Nicolosi, Barbara & Lewerenz, Spencer. Behind the Screen: Hollywood Insiders on Faith, Film, and Culture. Chicago: Baker Books, 2005.
Pennsylvania State University. Broadcasting & cable. New York: Cahners Pub. Co., 2008.
Plunkett, Jack. Plunketts entertainment and media industry almanac. New York: Plunkett Research, Ltd., 2006.
Richard, Gershon. Telecommunications and business strategy. New York: Taylor & Francis, 2008. Read More
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