STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

Question 1:

News Corporation has a diversified media and entertainment business.The company's key businesses include filmed entertainment, newspapers and information services, cable network programming, television, direct broadcast satellite television, magazines and inserts, book publishing, and other. The filmed entertainment division is engaged in the development, production and worldwide distribution of feature films and television programs. The division's Fox Filmed Entertainment (FFE) is one of the world's largest producers and distributors of motion pictures. News Corporation is engaged in the newspaper and information services business, primarily through its subsidiaries News International, News Limited, Dow Jones and The New York Post. (Chaffee 2009 )

News International publishes The Times, The Sunday Times, The Sun and News of the World in the UK and Ireland. The sales of these four newspapers account for approximately one-third of all national newspapers sold in the UK. Dow Jones provides global business and financial news, information and insight through multiple channels of media. The New York Post (the Post) is a mass circulation, metropolitan morning newspaper published seven days a week and distributed in New York City, Baltimore, Boston, Florida and California. Cable network programming division produces and licenses news, business news, sports, general entertainment and movie programming for distribution to distributors in the US and internationally. The television operations consists of the operation of full power broadcast television stations. Direct broadcast satellite television business of the company principally consists of the distribution of premium programming services through satellite directly to subscribers in Italy. (Chandler 2009)

Other key businesses of the company include magazines and inserts, newspapers and book publishing. Also, the company has geographically diversified operations in the US, the UK, Continental Europe, Australia, Asia and Latin America. Moreover, the company's revenues derived from its products and services portfolio are also diversified in nature. For example, in FY2009, News Corporation generated revenues through eight business divisions: filmed entertainment (19.5% of the total revenues during FY2009), newspapers and information services (19.3%), cable network programming (18.3%), television (15.1%), direct broadcast satellite television (12.4%), magazines and inserts (3.8%), book publishing (3.8%), magazines and inserts (3.8%) and other (7.8%). A diversified media and entertainment business helps the company cope with a downturn in any particular business.

Question 2:

Porter five forces

Threat of New Entrants

In esteem of the News Corporation, the risk of entrant is reduced because in alignment to run enterprise in the media commerce it needs tremendous investment. Especially when functioning a international scale, it is very hard to get a broadcasting license. For demonstration, US regulation stopped foreign people from retaining more than 25% of any company with a broadcasting license. Government guidelines are occasionally foremost obstacles for new entrants. TNC has been functioning in the market for such a long time and gain much more experiences. They can get clientele and supplier loyalty.

Power of Buyers

The purchasers in outlook of the clients in the market have high power as the media market is highly competitive. There are numerous media operators in the market with alternate causes ...