Efren Arias
Erika Garcia
Jacob Huit
Ana Montez
Eliza Stapher
Denise Thomas
The British Broadcasting
Corporation
One of Britain’s most important cultural
institutions
A dominant force in the Broadcasting
industry (News entertainment and information)
Tries to differentiate itself with a wide variety of
high quality programs (Teletubbies and
Castaway)
Government-owned
Service provided for a license fee
BBC’s General Environment
The main strength is its growth potential and projection (TV,
Radio, Internet) and the strong position in the UK compared to
it’s competitors.
Social: One of the most important institutions in the UK
Technology: Holds a continuous commitment to improve their
technology and means of security (Increased use of fiber Optics,
and Digital systems)
Political: Deregulation in the telecommunication industry, and
presence of the government in decision-making
Economy: Unification of the European Union, strong presence in
the UK (basically no strong competitors)
The competitive environment
Number one provider in Radio and T.V.
Granada and Carlton Communications offer
competition, but do not represent a threat
In the world news market, CNN and BBC compete
intensely for market share
Strong local presence, less dominant globally
BBC Import Programs
TELETUBBIES
THE WEAKEST LINK
ABSOLUTELY FABULOUS
WHO WANTS TO BE A MILLIONAIRE
Internal Analysis
Management: The BBC’s management has undergone changes
ranging from the Board of Governors to the Executive Committee.
Some of these changes include: Director-General: Greg Dyke
Chairman: Gavyn Davies
Marketing: About 30% of listeners, 7 million more than a year ago,
now access the BBC world service through the growing network of
nearly 2,000 local broadcasting station partners around the world.
The BBC’s website earned exceptional growth, with usage rising
92% to 75 million monthly page impressions by March 2002.
Finance/Accounting: From 2000 to 2001, the BBC improved its
efficiency and generated a positive net income in 2001. However, in
2002 the company incurred high operating expenses that were
greater than the revenues it generated.
Conclusions About The
Internal Analysis (cont’d)
Operations and Management Guidelines: Projects have to adhere
to technological standards, such as analog and digital TV
transmittal, digital radio transmittal, and the matters of the law.
Research and Development: The BBC has introduced both new
television and radio services in order to enhance its digital
programs. (digital radio, phone/radio receivers, & handheld
computers).
Computer Information Systems: CIS is an important tool that helps
the BBC to become more productive, efficient, and competitive.
(BNCS)
SWOT
Strengths, Weaknesses, Opportunities, & Threats
 S:
 O:
1. Diversity of Mgmt Team
2. Focused and strong
objectives & goals
1. Deregulation of
telecommunication
industry
2. Government owned
 W:
1. Complexity of CIS
technology
2. Spending focus on
analog not digital
 T:
1. Merging of competitors
2. Lack of advertising
Strategy Formulation
TOWS Matrix
This matrix uses BBC’s
strengths, weaknesses,
opportunities and threats to
show the different possible
strategies and solutions
These strategies then can be
implemented to help the
overall performance and
profitability of the
organization.
SPACE Matrix
The BBC falls in the IV
quadrant, which indicates that
the company should pursue a
Competitive strategy. The firm
should consider the following
alternative courses of action:
horizontal integration, market
penetration and product
development.
Strategy Formulation
BCG Matrix
IE Matrix
Radio: 52.6% market share,
47.4% growth rate; considered
a “STAR”
TV: 37.1% market share,
62.9% growth rate; rated as
“CASH COW”
BBC Online: “QUESTION
MARK” This is because it has
a very low market share, but
retains a high growth rate
percentage.
UK: should pursue a hold and
maintain strategy including
market penetration and
product development
US/WORLD: harvest or divest
strategies should be
implemented. They will
probably never harvest or
divest the world portion
because this is used for
“political presence.”
Strategy Formulation
GRAND STRATEGY
MATRIX
The BBC lies in Quadrant I,
which indicates it is part of a
rapid market growth industry
while maintaining a strong
competitive position.
Compared to its rivals in the
UK, the BBC has more
financial strength giving it an
advantage over competitors.
Globally, the company can
make use of its
resources/subsidiaries
allowing an increase in
customer base.
QSPM MATRIX
The first matrix we formulated
focuses on Market
Development, which is split up
into the geographic regions the
BBC operates in.
The last two matrices examine
Horizontal Integration and
Product Development which
are split up into product
divisions (TV, RADIO, BBC
ONLINE)
Alternative Strategies
Market Development
Partnership Strategy
Product Development
Backward Integration/Concentric Diversification
Alternative Strategy
Market Development
Expansion of digital radio in Africa and Asia
Take advantage of the high-growth rate of radio
to increase customers
Increase profits
Disadvantage:

Limited access to digital radio (cultural, infrastructural,
and economical factors)
Alternative Strategy
Partnership Strategy/Market Development
Joint Venture with Yahoo
Increase awareness of BBC’s current
products/services in new geographic areas
Expected increase in sales
Disadvantages:


Initially, low return on investment is possible
Lack of appeal to American consumers
Product Development
Develop innovative programs for T.V.
(based on a cost-benefit analysis)
Internal Production (BBC) vs. External
Production
Quality
Cost
Staff/personnel
Time of production (Reliability)
Based on the SPACE Matrix, Grand Strategy,
and QSPM
Implementation
The goal is to increase profits and market
share
Stage 1: Focus on local market


Marketing campaign/radio & web
Financial resources
P ro fit Margin
T otal Debt ratio (T A-T E/T A)
0.30%
0.43
0.20%
0.42
0.10%
0.42
0.41
0.00%
0.41
- 0.10%
0.40
0.40
- 0.20%
0.39
0.39
- 0.30%
0.38
- 0.40%
0.38
0.37
1
2002
2
2001
3
2000
- 0.50%
1
2002
2
2001
2000
3
Implementation
Stage 2: Export product to potential
markets

Adapt to culture & market variations
Language
Tastes & preferences
http://www.bbc.co.uk/spanish/cps/sunday.shtml
Backward Integration/Concentric
Sell air time to other T.V. and radio stations
(Travel Channel, People and Arts, Clear
Channel)
Leasing air time to interested parties (suppliers
and competitors)
Increase audience and target new markets
(known brands)
Increase sales/profits with minimal or no
investment
Based on BCG and Grand Strategy Matrix
Implementation
Identify potential customers
Establish relationships with world class
suppliers
Develop contracts for air time
Quality criteria must be met for a contract
to be accepted
Evaluation
T.V. and radio ratings
Market share
Cost/Benefit Analysis
Quarterly financial review (revenue/loss)
Consumer response
Effects of War
Continuous war updates
More people are watching TV and
listening to the radio, increasing ratings
Live action coverage and interviews
with combatants is capturing audience
Increased expenses (staff/production)
Thank You!!!