The Comprehensive Insight into the Corporation BBC - Case Study Example

 The Comprehensive Insight into the Corporation BBC Executive Summary Important business services offered by the British Broadcasting Corporation include BBC Worldwide, BBC Resources, bee .NET, BBC Training, bbccanadashop.com, bbcshop.com, BBC International, BBC Swahili service, as well as bbcamericashop.com among many more. This discourse looks at the strategic issues at the BBC, risks posed by the issues, alternative situations, and provide viable recommendations that the management can apply to address identified strategic issues. The paper delves into the comprehensive insight into the corporation with hallmark being evaluating the strategic issues within the company. The position at BBC British Broadcasting Corporation (BBC) remains the leading broadcaster in the entire United Kingdom. The company engages in the running of various public global Television stations, digital and cable channels, and worldly radio networks. The BBC One channel is the biggest and provides a broad range of news and entertainment programming. The company broadcasts radio programming through the BBC World Service option in languages that exceed thirty around the globe. Dramas and comedies by the company come in other channels including the discovery channel that aim at reaching particular audiences. This report outlines the major strategic challenges faced by BBC at the stage describes in the case study provided. This results in likely options for future development and growth of the overall corporate strategy generating sustainable competitive advantage for BBC. Other features entail the cultural concepts following implementation of the new strategic approach developed by Greg Dyke. The paper takes the initial step of assessing challenging factors for BBC covering capabilities, environment, and purpose. This will be crucial in comprehending detailed view of the strategic position taken by the corporation. This analysis leads to a more precise definition of the final future strategic development plan and concepts. What is going on at BBC The original aim of the British Broadcasting Corporation is to educate, inform, and entertain. It operates on the path line of being the most creative institution around the globe and strives to pursue the same vision through all available means. Values pursued by the company are impartiality and independency, internal collaborations and diversity, value for money, as well as delivery of quality services. These values remain central to the growth and development of BBC as a service company that remains dominant in the United Kingdom and a market leader in the world as well. The company has more twenty-three thousand employees, more than two thousand journalist in the world, forty-four radio stations, and agents in all the two hundred and forty countries in the world. Attaining this fete and status is not by chance but through strategy while the biggest challenge remains growth and maintenance strategy to the company. It remains important for the corporation to follow its purpose in the process convincing the stakeholders that constitutes the government and public that it live up to the purpose. The risk involved in failing to do this is that it will lose the privileges of remaining the only state funded broadcaster in the United Kingdom. The BBC Environmental Drivers and Challenges Four essential factors constitute the environmental features that preset challenges for the British Broadcasting Corporation. The factors also entail the macro environmental features. Reliance on the political climate in the United Kingdom because of being a public service broadcaster underlines company as a company with political influences. Furthermore, it is important to understand that parliament occasionally determines the magnitude of the license charges that also remains the income for BBC alongside its charter. BBC generates more than ninety percent of its income through issuance of licenses. Politically, the status of public service broadcaster comes under frequent challenges by various politicians. This explains the reasons that the corporation needs to develop constantly. Understanding the economic perspective requires a person to consider the source of financial capital of the British Broadcasting Corporation. Competition in the market provides the only real economic challenge that the company faces in the market (Quelch, & Knnop, 2008). The society considers BBC an institution as opposed to a company. Based on delivery, BBC remains one of the companies that offer a public service of higher standards. It is one the best taxpayers in the United Kingdom and around the globe. This entails value and quality in the delivery of services. Implications of failing to fix the problem The first challenge emanating from the microenvironment is the threat to entry. Many companies continue to enter the market supported by the low threshold requirements in addition to few restrictions from the legal arena that allow the freedom of distributing channels. The liberal market policy requires countries to limit restrictions that guide operations of multinationals leaves little room for countries to protect their domestic companies. On the contrary, BBC still enjoys government protection and the advantage of large-scale production and broadcasting. The large number of multimedia services that offer the same type of services and products to the market provides a suggestion that point towards eliminating the need of having a public service broadcaster as the source of information, entertainment, and education. This is because other media service outlets offer the same satisfies the public need. Therefore, the second challenge is for BBC to start offering other services and products difficult for other competitors in the market to substitute. Solution In spite of these challenges, BBC remains the only non-commercial organization that concentrates on offering creativity, high quality, as well as pursuing impartiality as opposed to targeting profitability to satisfy the goals of stakeholders (Quelch, & Knnop, 2008). The corporation applies this as a weapon of protection against anybody challenging its status in both the United Kingdom and the world. The third challenge from the microenvironment entails maintaining the buyers. It is clear that BBC offers services with the viewers and listeners being the final clients and consumers of the service. Although this filed has a limited number of competitors the ratings show that as much as BBC controls the largest share of the market, the competitors still offer a threat. This is because the competitors offer some of the services provided by BBC at lower cost. A sky sport for instance, brings competition to BBC’s sport channel. The introduction of satellite and digital television broadcasting makes the environment challenging for BBC because the cost of switching for viewers continues to reduce. The public service model pursued by BBC makes it difficult for the company to continue retaining the first position in the market in the United Kingdom as well as market leader in the world. Following the complexity of maintaining buyers is the capacity to continue attracting partners and suppliers. BBC is likely to face challenges in attracting external partners for mandatory production and distribution as well. Furthermore, BBC cannot work without cables and satellite stations to continue with free-to-air services besides business operators for extra screenings. This means that BBC must continue maintaining a vigorous brand and credibility to create an unprofitable environment for partners that leave BBC together with those that desire to replace the services they receive from BBC. Causes of Challenges The final challenge posed by microenvironment entails handling rivalry. Important in this perspective is to comprehend that commercial companies that share the large-scale capacity enjoyed by BBC exist. This is in addition to small companies in the market. Throughout the last decade, the world continues to witness the growth and expansion of the media industry. This explains the decline in the ratings of BBC resulting from the shrinking market share controlled by BBC. The pivot of success revolves around efforts by Greg Dyke who puts a lot of emphasis on service and product differentiation. This takes place through cutting of costs from the management side and channeling the same to creativity in programs referred to by scholars as product development besides quality and facilitation of internal partnership consolidation. Important Financial and Quantitative Indicators To sustain the competitive position held by BBC several core capacities of the company require development and protection. This will help safeguard the company position in future. They include special resources such as multi-channel service delivery system almost becoming obsolete requires upgrading, marinating excellent reputation remains essential for retention of the positive bias by the society , as well as politicians to secure funding, keeping of partners and partnerships, and retaining the attractiveness brand for the company to continue attracting employees (Quelch, & Knnop, 2008). This remains in line with the views of Greg Dyke, when he came in as the Chief Executive Officer. He introduced changes in the organizational culture and structure replacing concepts considered ineffective by most analysts and the CEO. This entailed among other things substituting the old market collaborative culture with a new and modest one. This would be central to managing the new challenges and take care of future advancements. It is important according to various scholars to embed strategic capabilities in the company through the cultural organization of the company. It is essential for the management at BBC not to take this type of plaudit for granted and become complacent. The corporation should strive maintain the status to keep the positive bias towards them by the society. It is important that the company remains the preferred media of choice by most people. Keeping in touch with changes in technology makes BBC one of the best broadcasting companies in the world. The era of digital comes along with new challenges for development, growth, and strategy. This includes among other features the necessity to deliver excellent online services as well as inter-media building of the company brand. Different scholars isolate various sources and claim that the dynamic overall trend in the current market environment constitutes brand building through online as well as direct promotional activities that add value to the brand in all sectors, service, and product. The public service broadcaster must adopt and follow this trait to remain competition in the industry around the globe. Recommendations To address the current strategic issues facing the company, BBC must undertake product development, consolidation, as well as diversification. This will help in sustaining the market share of the company and invest more money in creativity and in the process build and develop strengths enjoyed by the company. Considering the saturation levels in the market, the company must concentrate on its core competences in addition to expansion in new areas to satisfy the public thirst putting into perspective that the public are the real stakeholders. References Quelch, J., & Knnop, G. (2008). BBC Worldwide: Global Strategy. London: Harvard Business School Press. Read More