Global Strategy And Foresight - Assignment

Global Strategy And
Foresight

Table of Contents
INTRODUCTION...........................................................................................................................1
STEP: 1............................................................................................................................................1
Understanding of the firm......................................................................................................1
STEP: 2............................................................................................................................................2
Industry analysis:....................................................................................................................2
STEP: 3............................................................................................................................................3
ETO’s key competitors...........................................................................................................3
TASK 1............................................................................................................................................4
Sources of competitive advantage and its relevance to management: ..................................4
TASK 2 ...........................................................................................................................................8
Firm’s strategy and strategic position.....................................................................................8
TASK 3..........................................................................................................................................11
The role of innovation and internationalisation in a firm’s Competitive Advantage...........11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
Global strategy is considered to be a plan that is developed by company to target the
growth beyond their borders. It is a method of competing as well as expanding into globalised
market. This is essential for company to expand their business internationally as it facilitates an
opportunity for more profitability and sales (Biscop, 2012). Global foresight is essentially utilise
in company and is combining process of future work. It is considered to be an integral part of
corporate cultures as well as global strategies. It is important for business as this allows them to
foresight for the global business. This report includes three steps as well as task. There is a
different requirement given which need to be fulfilled. For this report chosen company
Entertainment one which is a publicly traded Canadian leading multinational mass media and
entertainment company. Its headquarters is Toronto, Canada.
In this report, “Entertainment One” is taken as a case study in all tasks as well as three
step are to be explained. In Step 1 understanding of the company are to be mentioned. In step 2
analysis of industry has to be performed and in step 3, identify ETO's key competitors also
analysis for chosen company revenue, key business units and compare with their competitors and
another major players. Task one defines about the sources of competitive advantages and its
relevance to the management of company while task 2 describes the strategies which a company
is used and its strategic position. Task 3 explains the role of innovation in an organisation and
internationalisation in a firm's competitive advantage.
STEP: 1
Understanding of the firm
In this report, Entertainment One company is taken as a case study. This is UK based
company operated in media and entertainment industry. This is a global media and entertainment
company with an annual turnover of over one billion US dollars. The firm is primarily involved
in production and distribution of music, films and television series. The firm owns popular
animated children's series like Peppa Pig, PJ Masks among various other productions. In the UK,
media and entertainment industry is expected to grow at a compound rate of 3% per annum over
the next 5 years and will be worth £76 billion by 2022 (PwC, 2018b). Its annual revenue is $1.5
billion and key business units and their revenues are Film - £402.2 m, Television - £ 539.0 m,
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Music - £ 49.4 m, Family brands -£ 138.6 m. The market of Media and entertainment is
dominated by firm.
STEP: 2
Industry analysis:
Media and entertainment is now considered as a vast industry for all age group that
includes music, movies, TV and so on. Global media and entertainment market is collected to
issue centre stage again. This market hold some important opportunities for the players of
industry. This industry comprises aggregation, content distribution, advertising, news and data,
creation and entertainment by many media platforms and channels. The key players are Viacom,
Walt Disney, HBO, YouTube, BBC, News corporation, Televisa, Comcast, Vivendi and so on.
Key segments are film, music, television, social media, video games and so on. Current global
revenue is $994 (Digital) and $1156 (Non digital) (Entertainment and media revenue, 2019). In
some regions where global media and entertainment industry are Europe, Japan, China and so
on.
Industry projection for next 5 to 10 years
In global entertainment and media outlook, it is predicted that UK sector will be develop
at rate of 3% per annum over the upcoming five years and its value 76 billion within 2022.
Digital expenditure goes one to lead industry growth at 7% annually (The next five years for the
UK Entertainment and Media industry, 2019). TMT industry have been experiencing
convergence for longer period. Customers are connecting more and more than before.
Boundaries are blurring among traditional segment of media and competition are maximising
because this sectors is becoming grounds of battle for telecoms, internet and technology firms.
Most of the customers love video content and their terms that goes on to dominate their
expenditure habits over next five years. Therefore, whole growth is slow down because
upcoming generation of customers are coming online so, it forecast that there will be growth of
mobile internet access at 9% annually in coming 5 years as 5G will be rolling out increases
experience of mobile.
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Source: The 2018 UK entertainment and media outlook, 2019
STEP: 3
ETO’s key competitors
Key competitors are the one who competes and sell similar products or services into
market. Some of the key competitors of ETO's are Viacom, NBCUniversal, Discovery, MVB,
Turner, ROCNATION and so on. Also business units are television, music, family brands etc.
Comparison of revenue
Competitors Revenue($)
eOne 1.5B
Viacom 12.9B
NBCUniversal 33B
Discovery 6.4B
MVB 12.4M
Turner 6.9B
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TASK 1
Sources of competitive advantage and its relevance to management:
For understanding the source of competitive finance and its relevance, firstly understand
the definition of competitive advantage. Competitive advantage means a favourable position an
company wants in order to earn more profits than its competitors. It can be achieved through
providing better and greater facilities and services to customers (Bootz and et.al, 2018). It grows
basically out of company value that is capable to develop for their purchasers which exceeds cost
of organisation while creating that. Also contributes towards brand loyalty, higher prices and
more consumers. ETO competitive advantage is highest quality content. Content is considered as
a heart of everything that company do. It focus on developing , handling and monetising a
function of effective quality content over a extent of genres and formats which is different from
other company. This is sourced from world's best innovative talents, offer company a range of
various structures of partner ship so that it can able to share advantage of their worldwide
presence in order to drive the value of present and future.
Source of competitive advantages:
According to Arthur F. Rothberg, sometimes a competitive advantage of firm is
considered as USP. After observing the annual report of Entertainment One, it is clearly stated
that there are some competitive advantages like Highest quality content which is available to
this company. Various sources of competitive advantages are as follows:
Family and brands: It is a key properties of ETO and this aims on developing a
children's portfolio that properties are spearheaded through PJ Masks and Peppa Pig. Both are
leading brands of pre school in all over worlds. It help management of ETO's to accomplish
competitive advantage as through this it can provide good content globally. It creates a
competitive advantage in comparison of other competitors.
Television: this is known to be the key titles of company. According to annual report of
2018, entertainment One is considered to be the independent producers of content commissioned
of television (Brennan and et.al., 2015.). All this content is sold by their team of global sales so
that it can broadcast internally and it helps ETO management to lead their digital platforms. This
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assist them to attain competitive advantage as major content are under Entertainment one and
sold by global sales team.
Film: It is also a key titles and entertainment one is known to be the leaders into UK,
Spain, Canada and Australia. They also use their scale in order to finance and produce a good
title numbers each year. Also it allow them to take part in global success of film. It aids ETO's
management to achieve competitive advantage as international successful films shows that they
are producing standard quality content.
Leadership: A company having strong team may lead the workforce of company in
effective and efficient manner can achieve competitive advantages. As in the given company i.e.
Entertainment One management identify a good leaders within company due to which it has
created competitive advantages as compared to its rivals.
People: A company in this industry like Entertainment One, people (employees or
workforce) are the foremost requirement because they are the driving force for most
competitive advantage (Dixon and et.al., 2014). If workforce of a company is better in
innovating, creating, producing and establishing relationships with target customers then it may
achieve competitive advantages. For example, if competitors of Entertainment One may be able
to copy its products but they will never be able to copy their people (workforce). It is better for
the management of companies to safely locked up its tacit knowledge of its employees to make
competitive advantage as compared to its rivals.
Organisational culture and structure: It is another source through which a company in
this sector like Entertainment One can achieve its competitive advantages. An effective culture is
helpful in focusing the energies and abilities of workforce for producing meaningful results, as a
result, a company may achieve its competitive advantages (Duus, 2013). So, company's
management have to create a better structure in order to accomplish their competitive advantage.
Processes and practices: This is another source which helps in achieving the
competitive advantages for any company in this sector like Entertainment One. If management of
Entertainment One has high quality methods of producing results it may enjoy competitive
advantages, this is because, It can be difficult for rivals to copy processes and practices.
Products and intellectual property: This is most important source by which a company
in this industry like Entertainment One can achieve its competitive advantage to earn more
profits as compared to rivals. Though the design of products of this company, it has enjoying the
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competitive advantages, But this is very easy for any competitors to copy the design of its
products. For overcoming from this problem, there are various laws related to intellectual
property and copyright etc. to protect the rights of company in its product's design, technology
and its process design. Company's management have to follow some regulations which assist
them to overcome from some issues like design copy and so on.
Capital and natural resources: Capital and access to natural resources were
traditionally the source of most competitive advantage. The importance of capital has declined
over time (Gardner, 2017). For example, capital is the primary competitive advantage in old
industries such as transport. If management of Entertainment One own a railway that has
exclusive routes, it's difficult for the competition to build a route to compete. New industries
such as information technology are less capital intensive.
Technology: Technology as a major factor in competitive advantage with the industrial
change for any company in this industry like Entertainment One. At first, technology involves
industrial machinery, transportation technology, energy, office equipment and consumer
products. In the 20th century IT and biotechnology appear as major factors. Company
management can utilise high end technology in its production systems which is a major source of
its competitive advantage.
From the above competitive advantage sources technology is most relevant for
Entertainment One management as it help them to do more innovation in their products and
services such as more animation etc. in order to attain competitive advantage.
Relationship between organisational vision, strategic objectives, intent, resources, planning and
the firm’s environment
Corporate strategy that company create to attain their objectives and generates plan and
policies for accomplishing that goals. In order to achieve mission and fulfil vision, company has
some strategic objectives. These can be only accomplished with proper utilisation of resources,
effective planning and good working environment within organisation (Gary. and Heiko, 2015).
The mission statement of ETO is “Bringing the best content to the world”. To achieve this
company made plan according to that some strategy and resources are utilised for accomplishing
objectives.
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There are some criteria through which abilities can be assessed fro facilitating a base for
accomplishing sustainable competitive advantage. A VRIO analysis is done where value, rarity,
inimitability and organisational support.
 Value - In this resources and capabilities exit which can be valued through consumers
and allow company to react for the opportunities or threats of environment (Güemes-
Castorena and Amezcua-Martínez, 2013). It helps ETO to identify valuable resources
and also responds the opportunities as well as threats.
 Rarity - In this rare abilities are those that controlled uniquely through company. It can
be temporary. Through this ETO's can able to identify the rare resources and capabilities
which can be control by them.
 Inimitability - It is those capabilities which competitors identify difficult and expensive
to intimate, substitute or obtain. In this competitive advantage can be develop on unique
resources but all these may not be sustainable. In this those resources and capabilities are
identified by ETO's whose substitute is as yet not available in market.
 Organised - Organisational support, company should be proper managed in order to
support inimitable, valuable and rare capabilities which it have (Holland, 2018). It
involves suitable systems and processes. In this ETO's have to manage or support the
overall implemented resources.
Resource V I R O
Reliable
suppliers,
Strong Dealer
community,
Strong
Distribution
network
Financial resources
such as cash flow,
balance
sheet.Entertainment
one has integrated a
number of technical
companies through
successful merger and
acquisitions, to
streamline its
operations and build
Firm implement
effective strategy in
order to managing
their resources in
effective manner to
attaining effective
competitive
advantages.
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reliable supply chain.
Capability V I R O
Effective
supply chain
management
and reliable
distribution
network to
reach at
potential
marketplace.
Ability to raise funds
and manage cash
flows, balance
sheet.Strong free cash
flow through
successful merger and
acquisitions
Company execute
management
approaches so that
capabilities can be
managed efficiently in
order to achieve
competitive
advantages.
VRIO analysis provides some benefits to the management of Entertainment one such as
this help to take effective decisions, also facilitates information and its outcome will be useful for
competitive advantage. Also helpful to identify and measure the resources of company. Some
resources are cash flow statement, balance sheet, customers, employees, music, films and so on.
Capabilities are to provide good content, produce more films, capability to achieve objectives.
Mostly skills of employees are used to produce content at good level.
TASK 2
Firm’s strategy and strategic position
Business strategy is refer as a plan of company in order to produce economic profitability
which is based on standard quality, lower costs and so on. Strategic position is related with the
means where a company as a whole differentiate themselves in valuable manner from their
competitors as well as deliver deliver some value to particular segments of customers (Markus.
and Mentzer, 2014). Therefore, strategy help ETO's to generate profit and through strategic
position it can get to know about their position among competitors.
The two strategic statements of Entertainment one are “Inspiring smiles with the world’s
most beloved characters” and “Turning it up across the entire music industry”.
“Inspiring smiles with the world’s most beloved characters”
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Entertainment one is refers as a leaders of market into distribution, marketing and
creation of kids award winning, contents which relates with families in all over the world.
Inspiring smiles with the world’s most beloved characters this statement generate from Peppa pig
to PJ Masks. It takes a changing brands in all manner staring from screens towards stores. PJ
mask is known as a big favourite with families over the world. This statement explains that three
heroes such as Cat boy, Owlette and Gekko are playing characters in PJ mask: moon light heroes
through which people inspire to smile or due to which a smile comes into the people. Most of
Individuals are inspire through their favourites characters (Masters and Kaartemo, 2017). So, by
seeing those characters in some shows people get motivate and it brings smiles into individual
face.
ETO company with this statement try to bring smile for their viewers. Thus, people love
those characters and enjoy to play with them. PJ mask is a APP in which favourite hero character
are chosen to play with and also journey over rooftops of moonlight and by night gather more
orbs as players can. But it has to aware about the pesky villains. All these three characters enter
on adventures of action picked, resolving mysteries and learning effective lessons on means. So,
they are on their way in night to protect day. All these three characters motivate people to smile.
As by playing games people gain some knowledge and enjoy that keep their mind relaxed and
bring smiles into their faces (McMichael, 2012). Some awards like internation Emmy kids
awards, licensing awards, BAFTA all awarded to Entertainment one , family brands. It also
shows that people likes those characters get encouraged with them to smile. ETO tries to makes a
everlasting memories of childhood for this they carefully crafts, nurture and choose best content
for children's in their international brands. Child hood memories bring smiles into individuals
face.
So, ETO try to recall those memories. That's why the statement inspiring smiles with
world's most beloved characters means Cat boy, Owlette and Gekko are characters through
which people can remember their childhood memories and they smiles. This can be attained by
ETO through facilitating more relevant content for characters, some shows or games related to
cartoons characters that memories childhoods. Some resources are employees content writers,
viewers and so on. This allows company to achieve competitive advantage. Outlook of media
and entertainment industry highlights the growth opportunities, companies trends and which type
of market emerge in this sectors. Firm can achieve this through their valuable resources such as
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employees, manager, computer system and capability like efficiency, flexibility as these help to
make innovative carton characters through which people inspire to smile.
“Turning it up across the entire music industry”
Entertainment one is a one of the leading media and entertainment industry. Through this
statement company want to come with something new in entire industry of music. It try to put
the talent first such as writers, composers and musicians with the management of talents,
publishing, production, distribution and licensing. Music industry are belongs to those firms and
people which earn money through developing new songs also sale some live shows and concerts,
composition and sheet music, recordings of video and audio. Company have to do some research
in order to bring something new into the industry of music. For this ETO have to put more
efforts for searching some effective talents related to music. Music means a lot to almost every
one. This a means to release and express feelings as well as emotions. It is a sounds form that is
generated through individuals singing or by playing instruments.
Therefore, company want to bring something new into music industry which would be
liked by people more and more. ETO revenues for music is decreased by 9% from previous year.
ADA who is known as Warner music group member, currently manage overall physical sales as
well as distribution into US and Canada. New album Chronic and the late Chuck berry are
considered as a strength for catalogue and new music in this sectors. For accomplishing this
strategic statements it focus to bring new talented artist, composers and writers to deliver high
quality content also compose some innovative music. More growth can be attained from
management of artist. All these only happens when company are deliver something innovative in
music industry then only it can accomplish this statement turning up it across the entire music
industry. Some resources for this like artists, listeners and so on through these company can
attain this strategic statement. Capabilities such as effective writers for songwriting, good
composer for song composing and artists in order to sing songs in innovative manner with the
help of these capabilities ETO can attain this statement. By using all these resources and
capabilities turning up it across the overall industry of music.
By producing some memorable music that is rated through Billboard and independent
label of records. Also music of eOne is Grammy award wining, market, team finds and signs
outstanding music over genres. Its music is known to be the home for growth lists which
involves approx 150 artists and 40000 tracks. ETO is the independent firms music into world.
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Firm can attain given statement by using resources like patents, partners, databases, customers
and capabilities such as management, efficiency etc. all these assists them to create innovative
things so that it turning up the whole music industry.
TASK 3
The role of innovation and internationalisation in a firm’s Competitive Advantage.
Innovation is a changing method and creating effectual products, methods and ideas. It
helps ETO's to change their model of business and adopt the changes in environment in order to
deliver good and services. According to Braden Kelley, innovation is something that transform
useful invention seeds into result that valued above each existent options. The role of innovation
is considered to be an essential key which leads towards creative activity of competitive
advantages for enterprises. So, the global media and entertainment industry focus on innovation
specially external skills, experiences and knowledge that can adoptive and drive towards
competitive advantage creations (Oriesek and Schwarz, 2016). The innovation role in
competitive advantage of ETO's, it assists them in technology advancement, doing new creations
and so on. Technology advancement, through this ETO's can create more innovation as
technology is becoming advance. Company can make some effective quality films, music and
also introduce more games by doing innovation such as animations and so on. Innovation plays a
essential role for achieving competitive advantages. As through innovation ETO's can performs
some innovation task that help them to accomplish their competitive advantage.
Internationalisation is refers to the methods of designing as well as developing an
application in order to provide localisation (Sloan, 2013). Internationalisation as a outcome of
good strategy can shown to be successful and it provide ETO's a competitive advantage within
international marketplace. The role of internationalisation allow ETO's to develop and design
their products in such manner which help them to remove barriers to international preparation. It
involves things which allow the utilisation of Unicode etc. It enable codes in order to support
regional, cultural, local and so on. If results of internationalisation is effective so, it allow
chosen company to achieve competitive advantage. As new designing of products and services
into different location or in international market enable them to gain the competitive advantage
of the company and also help ETO's to diversify their products internally. Due to
internationalisation, ETO's enable to develop and design new product and services into
international market. Due to that competitiveness increases, more customers attract, goodwill of
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the company maximises that aids to achieve company competitive advantage. So, both are linked
with each others.
Innovation and internationalisation is important for ETO's strategy as both of them assists
company to introduce or do innovation in their products into international market. It cannot be
possible without proper strategy. By implementing new ideas, developing their services as well
as creative modification allow them to make effective strategy for company. Also the decision of
internationalisation is considered as strategic decisions that has some affect on organisation. It
assist to expand their businesses in foreign market. Both are relevant for ETO's as through this
it can expand its business into other market with the help of innovations so that more numbers of
competitors get attracted.
Innovation and internationalisation along-with the formulation of strategy because of
their mutual independence relations are widely considered as a decisive factors for the
sustainable growth of entertainment one. For designing and implementing the strategy of ETO's
innovation is required as through this company can design and execute their strategy in more
efficient manner so that it can gain a competitive position in global market. If firm are planning
to internationalised so they have to formed the unique products at relevant cost. Thus, ETO's has
to implement and design strategy accordingly.
Internationalisation have made available to some firm, the same competitive resources,
therefore the requirement to identify sources of competitive advantage is hard to re-create by the
competition have become imperative for successful company. But for internationalisation
organisation have to introduce more innovative as well as attractive products and service into
other country in order to gain competitive advantage. This will help firm in attaining high growth
and sustainability in market.
Assessment 2
Covered in Poster.
CONCLUSION
From the above report it is concluded that global media and entertainment is leading day
by day. By implementing some sources of competitive advantage which are relevance for the
ETO's management provides benefit to firm. Through the VRIO analysis few resources and
capabilities are identified that help them to make effective decisions. Two strategy statements of
ETO's are explained and it can be achieve by firm according to their resources as well as
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capabilities. Role of innovation and internationalisation are helpful in gaining competitive
advantage in market.
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Online
The next five years for the UK Entertainment and Media industry. 2019. [Online]. Available
through
<https://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-
outlook.html>
Entertainment and media revenue. 2019. [Online]. Available through
<https://www.statista.com/statistics/303775/worldwide-entertainment-and-media-
revenue-digital-non-digital/>
Music industry in UK. 2019. [Online]. Available through
<https://www.statista.com/topics/3152/music-industry-in-the-united-kingdom-uk/>
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