Sky TV: Generic Strategy, Action Programs, Growth Strategies and Diversification Strategy

Running head: SKY TV
SKY TV
Name of the Student
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Author Note

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Table of Contents
Introduction: About the case............................................................................................................2
Answer 1: Generic Strategy.............................................................................................................2
Answer 2: Action programs to be adopted......................................................................................4
Answer 3: Growth Strategies...........................................................................................................5
Answer 4: Appropriate diversification strategy...............................................................................7
References......................................................................................................................................12

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Introduction: About the case
The case study of Sky Television Ltd in New Zealand is a typical case of a business
succumbing under the business environment pressure (Sky.co.nz, 2018). In this case, Sky
Television Ltd. has lost a majority of its market share due to the increase in the internet based
television series and other subscriptions to channels like Netflix and Amazon Prime. For this
reason, the management had earlier thought of reducing the base price of the products being
offered to gain a larger market share but instead in order to cover up its content cost, it increased
the base price and this resulted in the loss of market share and customer base as well because the
higher costs deviated them (Stuff.co.nz., 2018).
Answer 1: Generic Strategy
A generic strategy can be rightfully defined as the strategy which is adopted by the
organization at large for the future approach. Using a generic strategy Sky Television will be
successfully able to ensure that they can turnaround their current positioning and gain a larger
share in the business environment. The generic strategy which will be adopted for Sky television
is the Differentiation Strategy (Baaij, 2017). A differentiation strategy can be defined as the
strategy whereby Sky television can develop and market unique products for different consumer
segments. It can aim to provide Asian channels because the Asian population in New Zealand is
around 11.8% and can be successful move because New Zealand is diverse country, it can be
taken as an appropriate move to capture this crowd (Stats.govt.nz., 2018). In sports, they have
rugby telecast rights and they can go for cricket rights as well because cricket is also a famous
sport in New Zealand. Sky TV can give more focus on internet-based service as well along with
the new idea. As per today’s market people are relying on internet services rather than the dish
connections. To ensure action they can develop more effective and easier to use application and

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website. In such a scenario, the firm employs a differentiation strategy where there exists a
presence of certain competitive advantages and it can work through it. The suitability,
acceptability and feasibility of the recommended strategy have been provided as follows:
Suitable: The suitability can be defined as the quality of being appropriate. The
differentiation strategy will be suitable for Sky Television because it will be suitable for the
environment in which the company functions. As the market is being taken over by internet
based channels just like Netflix and Amazon Prime, with Netflix having around 2 million users
in the country (Roymorgan.com., 2018). Sky television will greatly benefit from this strategy
(Rothaermel, 2015). Secondly, after the assessment of the capability of the differentiation
strategy was done, it could be understood that the company has adequate resources to carry out
this strategy and hence lastly, with respect to the stakeholder and cultural influence the adoption
of this strategy is advised because this strategy will assist the organization to gain adequate
revenues which will then help the investors to gain higher returns. (Bowen, Baker & Powell,
2015).
Acceptability: Accessibility can be described as the characteristic of a situation being
worthy of being accepted by all. The reason why the differentiation strategy will be suitable for
Sky TV is because it will assist the firm in gaining sufficient returns which will bring about
positive margins. Secondly, the risk involved as per the strategy on the firm is comparatively low
because it makes use of the existing resources of the organization and shall have a positive
impact on the financial ratios of the firm (Hill, Jones & Schilling, 2014). In addition to this, the
stakeholder reactions who are the board members investors, employees and customers shall also
be positive. In addition to this, they can outsource their customer service to save costs and
manage the firms well. The differentiation strategy shall provide a new business model to the