Enhancing Foxtel: Customer Value Proposition and Future Strategies

This report provides a comprehensive analysis of Foxtel's business enhancement strategies, focusing on its current consumer value proposition (CVP), challenges, and opportunities within the Australian broadcasting industry. The report begins with an introduction to Foxtel and the industry, highlighting the company's revenue decline due to competition from SVOD services and other factors. It then examines the need for business enhancements, including improving staff satisfaction, innovating services, and developing future growth strategies. The report reviews three Harvard Business Review articles: "Know Your Customers," "Surprising Power of Questions," and "Superforecasting," applying their concepts to Foxtel's situation. The article reviews offer insights into customer behavior, innovation, and future planning. The report concludes with recommendations for enhancing Foxtel's CVP by leveraging customer insights and innovative approaches. The analysis emphasizes the importance of understanding consumer needs, asking the right questions, and making informed predictions to achieve a competitive edge in the industry. The report offers a strategic roadmap to help Foxtel overcome its current challenges and improve its business performance.

Running head: BUSINESS ENHANCEMENT OF FOXTEL
Business Enhancement of Foxtel: Customers, Innovation, the Future
Name of the University:
Name of the Student:
Authors Note:

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Table of Contents
1. Brief Introduction of Company & Industry.................................................................................2
2. Business Enhancements...............................................................................................................2
3. Current CVP................................................................................................................................3
4. Article 1 – Customers (Know Your Customers Article Review)................................................4
5. Article 2–Innovation (Surprising Power of Questions Article Review)......................................6
6. Article 3 – Future (Super forecasting Article Review)................................................................9
7. CVP Enhancements...................................................................................................................11
8. Conclusion.................................................................................................................................13
References......................................................................................................................................15

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1. Brief Introduction of Company & Industry
Foxtel Group is a partnership company that attains to revenue from its operations being a
pay television provider along with associated advertising agencies. The company has its business
operations all over Australia and is deemed to be administered by its head office that is situated
in North Ryde area of New South Wales. Foxtel Group is a company that operates as a jointly-
owned organization by Sky Cable Pty Limited and Telstra Media Pty Limited that is ultimately
owned by Telstra Corporation Limited and News Corporation Inc. considerably
(Ibisworld.com.au. 2019).
Broadcasting industry of Australia expanded rapidly over the past few years. The
subsectors in the broadcasting industry include establishments that generate content or have the
right to distribute and broadcast such content. The television and radio broadcasting industry of
Australia encompass the companies that operate broadcasting studios along with the facilities
over the satellite or air delivery of television or radio programs (Velu 2016). The cable along
with other subscription programming subsector in the broadcasting industry of Australia includes
operating studios that broadcast progress which are narrowcast in nature. Foxtel Group attains
most of the income from its Pay Television within Australian broadcasting Industry.
2. Business Enhancements
Despite operating successfully in Australian broadcasting industry over years being a
partnership company, Foxtel is deemed to require certain business enhancements as its industry-
specific revenue is observed to fall at an annualized percentage of 0.3% through the years 2017-
2018. Such decrease in the company’s revenue is because of the reason that a huge base of

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consumers are shifting to cheaper SVOD services like Netflix (Ibisworld.com.au. 2019).
Moreover, fierce competition from FTA TV broadcasters, new online players and illegal online
downloads has affected the company’s subscription TV business model. Such competition has
also increased content acquisition expenses and increased expenses of attaining broadcasting
rights that has decreased Foxtel Group’s profitability (Payne, Frow and Eggert 2017). The
company needs to consider business enhancements through improving staff satisfaction,
generating right atmosphere for consumers, innovating services and developing future growth
based business strategies. Innovating broadcasting services for changing needs of consumers is
necessary in ensuring its business enhancements and attaining competitive edge within the
Australian broadcasting industry.
3. Current CVP
The current Consumer Value Proposition statement of Foxtel is focused on “developing
content and effectively managing, programming, promoting and delivering them with care and
passion to consumers”. The strengths of this value proposition statement of the company include
developing a contemporary solution for the consumers with great simplicity that further
represents exceptional competitive value (Ibisworld.com.au. 2019). In addition, strength of the
value proposition statement of the company is that it continues to expand its value proposition in
order to enhance consumer retention.
. However, there are also certain weaknesses related with the existing value proposition
statement of the company as it is facing challenges in responding to fierce competition from free
TV offerings along with the broadband services from other companies. The existing consumer
value proposition statement of the company needs changes as it value opposition is focused on

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improving traditional broadcasting (Macdonald, Kleinaltenkamp and Wilson 2016). For this
reason, the company is facing issues regarding differentiating themselves on content than its
competitors.
4. Article 1 – Customers (Know Your Customers Article Review)
The selected article “Know Your Consumers” entirely focused on explaining that for
making successful business and service innovation, companies need to realsie the reasons for
which consumers make the choices they do. The concept of focusing of attaining more
knowledge on consumers’ needs indicates that in order to make great business innovations, the
companies must focus on identifying jobs that consumers are struggling to get them
accomplished (Harvard Business Review. 2019). The concept of knowing the consumers is also
focused on analyzing the social, emotional as well as functional dimension of such job. The
article also explained that jobs analysis or recognizing the jobs to be done does not require the
companies to take into least consideration the data and research that has already been gathered.
Instead the ethnographic research, personas, consumer panels, focus groups and related research
can also serve as effective starting points for gathering important insights on consumer
preferences (Skålén et al. 2015). In addition, concept of focusing of attaining more knowledge on
consumers can also consider identifying jobs to be done by the companies in offering them
desired value through addressing certain questions on jobs to be done, misconception observed,
work-around invented by people, tasks that are avoided by people and the surprising uses
invented by consumers for the existing services or products of the companies. In addition, the
theory of jobs to be done complements the theory of disruptive innovation that can also facilitate
in explaining and predicting the companies’ behavior. This concept implementation can also
facilitate in understanding which new entrants pose the highest threats (Patala et al. 2016).

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The article also revealed that there are several benefits related with the concept of
focusing of attaining more knowledge on consumers through analyzing jobs to be done. Fir
instance, through following this concept the businesses can be able to make small bur relevant
changes to their service or product offerings (Harvard Business Review. 2019). Moreover,
focusing in the aspects consumers are attempting to achieve on a specific circumstance can
facilitate the companies in making successful innovations regarding designing products,
experiences along with processes around such jobs.
Following such concept can be beneficial for Foxtel Company in dealing with its
challenges related to business enhancement. For instance, the company can follow the concept of
identifying jobs that consumers are struggling to get them accomplished in aligning their
business processes (Harvard Business Review. 2019). The company can consider integrating
across functions in supporting the job to be done as per the needs of its consumers. Moreover,
the company can also consider focusing organizational processes on the job to be done can offer
a clarified guidance to its team in developing services greatly demanded by the consumers.
Foxtel can also consider focusing its business excellence through innovation strategy on creating
consumer experiences. In this strategy identifying along with understanding the job to be done
can serve as the initial steps in developing broadcasting services that re demanded by consumers,
particularly the ones for which they will be willing to pay premium prices (Harvard Business
Review. 2019). In developing exceptional consumer value and beat the fierce competition within
the Australian broadcasting industry, the company can consider it essential to develop correct set
of experiences for the purchase and use of services and the integrating such experiences within
the company’s processes. Following such concept, Foxtel can bring in experienced international
TV executives that have already done an exceptional deal in enhancing consumer service.

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An instance conforming the concept has been revealed in the article which is an instance
of Des Traynor that is the co-founder of Intercom develops innovate software following such
concept that facilitates the company in remaining in touch with its target consumers through their
websites, e-mail, mobile applications along with Facebook messenger (Harvard Business
Review. 2019). Following such concept, the company has more than 10,000 consumers in the
current year and s growing its business further through adopting “jobs-to-be-done” perspective in
clarifying their strategy on innovation and business growth. This indicates that the concept of
identifying jobs that consumers are struggling to get them accomplished as an approach of
knowing consumers can offer companies with benefits of increased conversion rate. Such
increase can be observed for the reason that it can facilitate prospective consumers to purchase
the piece of site which suits their initial job where the companies are capable to establish several
points-of-sale across client companies indicating a logical path of relationship growth (Harvard
Business Review. 2019).
5. Article 2–Innovation (Surprising Power of Questions Article Review)
The selected article “Surprising Power of Questions” entirely focused on explaining the
concept of questioning as an exceptionally powerful tool for unlocking value in the companies.
This concept of questioning power supports the learning and exchange of ideas and it also
supports innovation and performance improvement of the companies and also facilitates in
building rapport and trust among the team members. Following this concept in the company can
also facilitate them in mitigating nosiness risks through uncovering unforeseen hazards along
with pitfalls (Harvard Business Review. 2019). The findings of the article also revealed that
conversational goals matter in following the concept of questioning as such conversations come
under the continuum of being totally competitive to being cooperative. Employing suitable

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questioning tactics can facilitate the companies in dealing with challenges related with
consumers being reluctant to share information, hesitant of consumers to share bad news and
poor focus on making conversations highly delightful and productive (Chandler and Lusch
2015). There are several benefits that the companies can attain through following the questioning
concept that includes information exchange (learning) and impression management (liking).
Questions can also act as powerful tools in unlocking exceptional knowledge gaining experience
and enhancing interpersonal bonding.
Moreover, the findings of the article also revealed several benefits of asking scattered
questions to consumers. For instance, top-performing salespeople are likely to scatter questions
all through their sales call that makes consumers get such calls as conversation and not
interrogations. Such questioning concept can therefore also increase conversion rate of
consumers (Ibisworld.com.au. 2019). It was also gathered from reviewing the article that the
questioning concept considers paying a great attention to the group dynamics for the reason that
conversational dynamics can change relying in whether people are communicating one-on-ne
with someone or in a group. The questioning concept also perceives that group dynamics can
also impact the manner in which a question asked is perceived considering same, in surveying
consumers regarding the services offered or expected from the company, it is important to take
into co consideration that right tone is employed. This is fir the reason that the article explained
consumers are highly forthcoming when they are asked questions in a casual manner rather than
in an official tone (Ibisworld.com.au. 2019).
From analyzing the importance of questioning concept in developing better consumer
vale proposition, Foxtel can be recommended to employ this concept in enhancing its existing
business situations through addressing challenges faced by it. In developing innovative services

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for consumers to attain competitive edge in the Australian broadcasting industry the company
can employ the power of questioning (Ibisworld.com.au. 2019). For instance, the broadcasting
company can consider asking detailed follow-up questions in their sales call to consumers for
gathering more information on their desired services. In ensuring that there is less chances that
the consumers will lie, the company can frame consumer expectations based questions in a tough
manner through employing pessimistic assumptions. Moreover, Foxtel can also consider asking
open-ended questions to its consumers in gathering negative feedback from its consumers
regarding its existing broadcasting services. The company can also consider implementing the
concept of questioning in gathering opinions from the consumers regarding the services that are
liked or disliked by them on the broadcasting offerings of the company (Ibisworld.com.au.
2019). Moreover, certain open-ended questions can also be asked to them regarding the reasons
for which they have shifted to SVOD services and online downloads. Gathering consumer
responses on such questions can guide the company in developing consumer specific
broadcasting services and increase its profit margins.
From analyzing the application of questioning power in encouraging business
enhancements of Foxtel, it can be clarified that questions along with related thoughtful answers
foster smoother along with highly efficient interactions (Rosca, Arnold and Bendul 2017). The
concept of questioning employed in the companies for communicating with consumers facilitates
in building rapport along with leading groups towards successful products and services
innovation. For instance, in the organizational context examined within the article it is also
believed that in maximizing the advantages of answering questions and decreasing the risks it is
vital to decide that information that the company intends to share and the data that it intends to
keep private (Rosca, Arnold and Bendul 2017). It is also concluded from the article that

9BUSINESS ENHANCEMENT OF FOXTEL
questioning concept has the advantages of responding to the consumer queries having a belief
that the power of such conversation can ensure personal engagement and motivation. This can
further facilitate the companies in building good rapport with the conversational partner that can
bring in wining situation for the company in developing large loyal consumer base and services
aligned with their preferences (Rosca, Arnold and Bendul 2017).
6. Article 3 – Future (Super forecasting Article Review)
The chosen article “Super forecasting How to Upgrade Your Company’s Judgment” has
mainly focused on the concept of super forecasting. It has been evaluated that individuals and
firms are significantly poor when it comes to judging the probability of uncertain events. The
susceptibility of the forecasters often colors the predictions to cognitive biases, reputation
concerns and desire to affect others. Therefore, incorrect judgments could lead to serious
consequences. The authors have analyzed nearly 25,000 researches, in which it has been found
that a group of practices could enhance the prediction ability of the organizations, training in the
basics of biases and statistics, arguing estimations in teams, providing feedback and tracking
performance (Harvard Business Review. 2019). Hence, the authors have stated that for
enhancing prediction capability, the firms have to maintain real-time accounts of the ways
through which their top teams make judgments like data sources, external events, underlying
assumptions and others.
The concept of super forecasting mainly deals with four precepts. The first precept
includes the sweet spot, in which the firms have to emphasize for which some logic, data and
analysis could be utilized along with careful questioning and seasoned judgment. Another
precept is to provide training for sound judgment that needs the staffs to learn the basics in

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different techniques like probability concepts, prediction of definitions and insight of numerical
possibilities (Harvard Business Review. 2019). The next precept includes diverging, converging
and evaluating where the assumptions, issues and approaches in finding a solution are explored
from various perspectives. The final component is identified as trust, in which the team members
need to have trust in each other for accomplishing fruitful outcomes.
By using super forecasting, the business organizations could reap a number of benefits. It
has already been mentioned that incorrect judgments could result in adverse consequences for
the organizations. With the help of super forecasting, the forecasting ability of the individuals
could be improved via training along with using teams for increasing accuracy, providing rapid
feedback and tracking prediction performance (Harvard Business Review. 2019). These
approaches have to be tailored for each organization based on the type of situations they might
encounter in future. Even though these programs are difficult to be formed since they are
targeted, the expected outcomes are likely to reap certain benefits for the business organizations.
Along with this, the organizations are needed to accumulate systematically real-time accounts of
the ways their top teams make judgments, maintaining records of the assumptions, experts
consulted and external events. Furthermore, the organizations have to provide training for sound
judgment that needs the staffs to learn the basics in different techniques like probability
concepts, prediction of definitions and insight of numerical possibilities (Harvard Business
Review. 2019). Finally, the organizations have to engage in diverging, converging and
evaluating where the assumptions, issues and approaches in finding a solution are explored from
various perspectives. Trust is another factor, in which the team members need to have trust in
each other for accomplishing fruitful outcomes. Hence, the authors have stated that for
enhancing prediction capability, the firms have to maintain real-time accounts of the ways

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through which their top teams make judgments like data sources, external events, underlying
assumptions and others (Harvard Business Review. 2019).
From analyzing the article it has been gathered that the concept of super forecasting in
the form of training, team building, tracking as well as talent spotting is deemed to be important
for better business performance forecasting by Foxtel. This concept is also evident from the
example of stock market analysts that observe patterns within the data which is devoid of any
statistical bias. Such instance confirms this concept through explaining that training approaches
can facilitate people in realizing the psychological factors which results in biased estimation of
probability (Harvard Business Review. 2019). Foxtel can also employ this concept in improving
their capability of forecasting consumer needs and business growth prospects through enhancing
forecasting ability if individuals in the company by means of better training, employing terms to
boost accuracy, tracking performance predictions and through enabling rapid feedback.
7. CVP Enhancements
From analyzing all the three articles and their application Foxtel Company in attaining
business enhancements it has been gathered that how the Consumer Value Proposition (CVP)
can be enhanced with respect to customers, innovation and futures (Harvard Business Review.
2019). The company can consider implementing the building blocks of developing an effective
and successful CVP that are indicated below:
 Points of parity: Foxtel can consider delivering value to consumers through including
elements in their innovative broadcasting services that has similar functionalities as the
one like the next best alternatives.

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 Points of difference: The Company can also consider offering value to consumers
through including necessary elements within its services that can make the suppliers
offerings superior in comparison to the next best alternative (Harvard Business Review.
2019).
In consideration to the concepts elated with consumers, innovations and futures it has
been gathered that Foxtel can consider developing an innovative and attractive program of
researcher regarding the wants of consumers and offering them with a service which really caters
to their needs. All the channels of the company can broadcast programs which can delight,
entertain and affirm each day the subscription television value proposition with the target
consumers (Ehrenhard et al. 2017). The strengths of this value proposition approach of the
company include developing a contemporary solution for the consumers with great simplicity
that further represents exceptional competitive value. In addition, strength of the value
proposition statement of the company is that it continues to expand its value proposition in order
to enhance consumer retention.
In addition, for ensuring improvement in the CVP the broadcasting company based in
Australia can also consider activating its own internet connection to a large number of iQ set top
units (Schaltegger, Lüdeke-Freund and Hansen 2016). This can facilitate the on-demand
consumers of the company to attain access to a large base of TV episodes and movies. Knowing
consumers changing needs and offering such innovative services can ensure offering best content
anytime, anywhere at a great value to address the fierce competition. In ensuring enhancement of
CVP, Foxtel can develop its refreshed future commitment to develop a wide array of
differentiated content that will be unique-commissioned, acquitted and produced in partnership
with other channels (Rosca, Arnold and Bendul 2017). Focused on the innovative market trends

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followed within the Australian broadcasting industry that has increased completion among
several broadcasting companies, Foxtel can also consider implementing the power of innovation
in its services. Knowing consumer demands and introducing unique innovations within the
industry such as HD Hybrid set top box with a new set of IP smarts can ensure offering dedicated
consumer value and also has the power to beat the fierce competition of quality services.
In ensuring better enhancements within its consumer value proposition programs, the
broadcasting company must also take into consideration dealing in the consumer interests’
spectrum (Sorescu 2017). This is for the reason that in recognising such areas, the company will
attain the expertise to align their broadcasting content investments in certain interest areas of
consumers that its competitors has faced difficulty in attaining expertise. This also indicates that
HD, search, interactivity and recommendation along with extensive integrating with social media
can be such core interest areas that can enhance consumer value offering. Moreover, in
developing these innovative services for better consumer value proposition, the company must
also take into consideration that employee training, team building, tracking along with talent
spotting is important for better forecasting on future business growth through offering better
consumer values (Eggert et al. 2018). Such approaches must be customised all through its
business and employee expertise in order to master in creating a highly integrated consumer
value proposition program.
8. Conclusion
Despite operating successfully in Australian broadcasting industry over years being a
partnership company, Foxtel is deemed to require certain business enhancements as its industry-
specific revenue is observed to fall. The first article also revealed that there are several benefits

14BUSINESS ENHANCEMENT OF FOXTEL
related with the concept of focusing of attaining more knowledge on consumers through
analyzing jobs to be done. For instance, through following this concept the businesses can be
able to make small bur relevant changes to their service or product offerings. The second article
revealed that employing suitable questioning tactics can facilitate the companies in dealing with
challenges related with consumers being reluctant to share information, hesitant of consumers to
share bad news and poor focus on making conversations highly delightful and productive. From
analyzing all the three articles and their application Foxtel Company in attaining business
enhancements it has been gathered that how the Consumer Value Proposition (CVP) can be
enhanced with respect to customers, innovation and futures.

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