ANALYSIS

Strategic analysis of ITV PLC

Abstract

ITV plc is an integrated producer broadcaster and a leading commercial television network having its headquarters in London, UK. It run an array of family channels and also provides direct material for the consumers via numerous portals. It also focuses on online advertising and generates substantial revenues from this segment. The company envisions developing world class content in UK and across global regions. The strategic analysis of the company reveals that it is functioning in a global market with ongoing technological advancements. However, The company is in a well established position to respond to the changing consumers needs as it hold a strong position in market, has reduced it debt and has a more strong balance sheet and a more leaner structure of costs. However, it lacks scale as compared to its competitor's and but has opportunities to grow its online advertising and increase access to numerous resources to reach consumers. Hence, it is proposed that the company should increase investments to bring novel products, increase scale, and explore new markets.

Strategic analysis of ITV PLC

Introduction

ITV plc is an integrated producer broadcaster functioning in UK. ITV plc is the leading commercial television network that had its headquarters in London, UK. The history of ITV dates back to 1954, when commercial television was made possible in UK after the act passed for launch of televisions. In 1955, the first broadcasting of ITV was aired on channel 3 in London. ITV grew as a consolidated company following the Broadcasting Act of 1990, which under specific conditions, allowed regional companies to merge (www.itvplc.com).

The first merger was in 1994 when Granada bought LWT, after which, Granada plc had possession of six regional licences, Carlton had possession of five, Scottish Media Group had possession of two, while Channel and Ulster remained independent. Carlton and Granada merged while the Communications Act made necessary changes in legislation and the Competition Commission approved the plans for mergers. Hence, ITV plc emerged in February 2004, as a possessor of eleven regional licences from fifteen regional licences. Today ITV plc is a seler of advertising on behalf of all fifteen licences. It also produces much of the programming broadcast on ITV channels. Since the merger, ITV family of channels has expanded with the launch of ITV2 in 1998, followed by the launch of ITV3 in 2004, while ITV4 in 2005, and finally CITV in 2006 (www.itvplc.com).

ITV plc has an array of family channels. These include its rebranded version, as well. It makes use of ITV Player and itv.com to deliver the content across numerous platforms. It also provides direct material. ITV Studios is a famous global production and distribution business. It makes and sells formats and programmes in UK and across global regions. The ITV Family of channels attracts the largest audience of any UK broadcaster other than the BBC, with a 22.3% Share of Viewing in 2012, and has the largest share of the UK television advertising market at ...