Media Business and Society - MBA Assignment

This assignment focuses on reviewing and analyzing established business strategies in the media industry. It explores the current principle and delves into various aspects of this dogmatism. The analysis aims to determine whether this is the right path for a proposed business plan.

MBA – Media Leadership program
UNIVERSITY OF CUMBRIA/ROBERT KENNEDY COLLEGE
Assignment Title:MEDIA BUSINESS AND SOCIETY
Current Course: CRKC7009 – Media Business Society
Enrolment Date:09 May 2022 – 31July 2022
Professor:George Thomas
Student ID: Enoch Ephraimson
TABLE OF CONTENTS
ABSTRACT
2

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INTRODUCTION 2
Company Overview3
Political Economy of Media 3
SWOT Analysis 4
Netflix SWOT Analysis 4
Strategic Issue 4
Recommendation 5
REFERENCES 5
Abstract
Most ofthe business model conjecturedis more or less an extemporization of
previous implements. Furthermore,every new embracing business chooses
to succeedin a particular strategy.The principle of astrategy is the roster

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every aspect of the future of the company like the resources,
structure,andrisk assessment to handle. The topic of the assignment is to
reviewand carefully analyze prismatic establishedbusiness strategies. It
begins by analyzing the current principle and delvinginto other aspects of
this dogmatism. Surely, all kinds of models can bringperceptioninto how to
approach using smart implementations, but it is demanded to adhere to the
core. This analysiswill bring an acute as to whether this is the right path for a
proposed business plan.
Introduction:
Some different types ofbusinesses can be picked out from all kinds.Some of
the popular strategies from SWOT analysis, conducting a PESTEL analysis of
the industry, and bestselling authors are the blue ocean strategy. The blue
ocean strategy indicates an innovativeconcept that chance into untapped
market potentialand shares about the idea is free from the overcrowded
market and a market where the competition isirrelevant. SWOT analysis
strategy can simply beexplained by each letter that stands for strengths,
weaknesses,opportunities, and threats apart, yet the five forces strategy
factors and,PESTEL analysisdetermine the competition in an industry.
Because of working togetheron some projects in our productionwith Netflix,
it’s more appropriate to search Netflix as what this course has given.
Netflix establishedthat is leading the industry however most
capriciousmarket. Likewise,in the frontierinternet streaming market based on
the Subscription, previously, Netflix had indubitable absolute success to grow
in the industry every month which is achieving more brimful.
Nevertheless,Netflix is going to face a new challenge to maintain as the
leader in the business. There have been arisen many competitors in the
industry competing with Netflix for market dominance, especially, Apple TV,
Amazon Prime Video, and Disney Plus which are the biggest competitors with
their lavish financial support to invest.These major three companies already
launchedservices in 2019. And other established competitors are HBO GO
and Hulu. The company is continuously losing market share even the swift
developmentof major competitors shows demonstratestrongly grow the
revenue in 2021.This industry will be growing heavilyaccess to compatible
devices to gain with a few global consumers. The customersbuy a plan that
suits all of their unique requirements when increased product competition
acknowledges.Control in this industry has moved undoubtedly to the
consumer and more power to the suppliers of content production. It is
considerably raising operating costs for streaming services as collaborative
services arenow charging for the rights to the same Television and Movies.

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Netflix has the biggest external threats currently face to political challenges
upon analyzing a PESTEL analysis of the industry. Netflix cannot excess to
expand products into China which is the biggest market in the globe,because
of the strict censorshiplaws in the country.
History of Company Overview
The state of Netflix’s the competition vs competitive advantage to assess,
competitive analysis of Netflix, the three major competitors streaming
service plus Hulu, and HBO Go, to weigh. The Netflix of biggest deficits in this
analysis was its price point with other streaming services, its lack of bundle
options, and no live television rights. Netflix could not possibly match
Disney’s pricing of its new service at only $6.99 a month, applying its
significant cash advantage to seek a cost leadership strategy. The costs of
licensing are rising for the content which is part of the threats in the
marketbecause of increased competition that causes higher costs. With
almost four times as much debt as equity financing businesseswhenthe
company has had to borrow considerably when collaborating with raised
original content development.An increasingly sophisticated recommendation
algorithm provided thesimple user experience to consumers with the content
they want, VRINE analysis displayed that as the leader of
theindustryitdemonstratesthe brand’smost valuable current advantage
enjoyed the company. Still, Netflix is in the category of the product life cycle
of the Growth stage,at the moment, because of the big hit content from
other countriessuch as Squid Game, Kingdom, and so on, andmost recent
years,atan increasing rate,the revenues have grown each yearthat growth
rate of 33% is substantially big compare to the CAGR of 30%.
Political Economy of the Media
Political Economy relates to the way in which economy base of a society
influences the
cultural and political spaces within the society. There is an issue of media
consolidation
whereby there is an option for the media giants to control the news,
entertainment, games, social network, and happenings around the
geographic space. For example, In North America nearly eighty percent of
media circulation is controlled by Big Tech and major content providers such
as Netflix, HBO Go, Hulu, Amazon Prime Video, Disney Plus and Apple
TV.Internet Companies Google, Facebook, Yahoo and Microsoft make up five
of top Companies
making revenue
Adam Smith as the founding father of political economy. They maintain that „it was Smith 's
destiny to be understood and misquoted for over two centuries" (Vol. I pp. xiv). Golding and
Murdock (Vol. I p. xiv) qualify Smith's concern with the protection and advancement of self-
interest and natural Iiberty

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The Political Economy of the Media" properly without knowing this particular ideological
background of theeditors. But the two editors leave the reader on his own: Neither do they
make explicit what they fight for nor do they mention that there are several other disciplines
within economics and communications which Iay claim to thc very notion of Political Economy.
lt is only Gandy (Vol I p. 87) who remarks that the Political Economy of the media is far from
being a unique perspective. He correctly cnumerates four „quite different approaches currently
wearing the title political economy" (Vol I pp. 87):
The Political Economy of the Media Cheltenham, Brookfield: Edward Elgar Publishing 1997 (The
International Library of Studies in Media and Culture; Bd. 2)
SWOT Analysis
There is never a strategy that exists for a business plan but rather a
strategic plan. The minds of the managementcreatestrategies like a
delusion. But much like the plans before it, it goes to the trash.It’s always
hard for companies to get the executive members on board often being blind
to how to deal with a problem and potential threats that face the company.
There will always be new plans being dumped over the already developing
programs creating turbulence, a lack of clear vision, and forgetting the main
goal that would eventually lead to the scrapping of the current plan. The
productthat works get funded and funding depends on budget rather than
strategic planning. Mostly the board members use this as a distraction to shy
away from the main goal (Brown; Bush; Norberg,2001).
Netflix SWOT Analysis
Strengths
Strong brand name/image
 Expansive Library of Original
Content
Personalized User Experience
Weaknesses
Some competitive advantages
aren’t sustainable
High Price Point
Rising Operating Costs
Opportunities
Offer more premium subscription
options
Global Expansion
Threats
Political problems in potential
foreign markets
New firms entering the market
Strategic Issues
What makes Netflix nourish its growth and have a risingmany subscribe
members
continuing to subscribe to maintain in the industryfor streaming
serviceswhicharechallenginglicensing costs and rising production, has

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amassed a considerable amount of debt, and exhausted budget of
thecompany by competition?
Options
Market Penetration Strategy is one option, in this situation,referring to
Market Penetration
Rate Formula which is a number of customers/target market size x 100,
Netflix’s aim is to bring moresubscriberswithin their target demographic. It
can affect diminutionwhich is their gross margin possible to making grow, at
the moment concurrently enhancing theproduct of functioning which applied.
In this atmosphere, Netflix should deemthe pollingbudget fornot productive
divisions like as mail-order DVDs,as an ideal opportunity is to reinvest the
finance elsewhere to run proficiently.
Product Development Strategy is another option, an enormous library of
original content that can further increase revenue,and as a robust
recommendation system to create new products, Netflix can apply its
continuing competitive advantages. These new productions could include
access to higher-spending customers who want to be increased functionality
with their subscription andmore premium subscription options.
Recommendation
A product development strategy is the most applicative for Netflix in the long
term. The existing sustainable competitive advantage to use the capacity of
Netflix, such asnew kinds of products which is a highly accurate
recommendation system, to create that will further increase growth, and
theability to download content.Their current debt is rising which is a threat
and it will not be remedied through retrenchment by increased
competitionas this in market share, will occur even more ground allowed by
competitors.Netflix’s download systemis the biggest drawback which
isavailable for offline viewing but not all of the content. According to
this,Netflix can bring the product toprovidethe option to frequent travelers
regardless of any location where they are consuming any content. Netflix
could make distinguish the serviceto offer any available show or movie to
download on the servicewith a higher-end subscription plan.
References
Terry Brown; Patricia Bush; Lennart Norberg (2001). Building Executive Alignment, Buy-In, and Focus on the
Balanced Scorecard SWOT

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The Political Economy of the Media Cheltenham, Brookfield: Edward Elgar
Publishing 1997 (The International Library of Studies in Media and Culture;
Bd. 2)