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Published by:
Singapore Management University (2013)
Version:
2013-08-13
Length:
10 pages
Data source:
Field research
Abstract:
Headquartered in the United States, Encompass Digital Media provides digital media services through its broadcasting facilities in the United States, the United Kingdom and Asia. Encompass delivers tailor-made solutions for the management and distribution of content, including a diversified range of TV content, as well as live sports events for companies such as ESPN, IMG, Star Sports and Sony Entertainment. Encompass Digital Media (Asia) began its operations in Singapore in 2009. By 2012, the company had captured over 50 per cent of the market for outsourced Digital Playout services in Asia. While manpower costs were significantly higher than in China, India and neighbouring South East Asian countries, the stability of the Singapore government, an established infrastructure and a friendly business environment made up for the higher costs. At the same time, the group was facing increasing competition. The sheer speed of growth that Encompass Singapore was experiencing called for an innovative, solutions-driven approach to almost all aspects of the business. Growth in the media industry was costly and capital intensive. Process innovation had been critical in supporting the growth of the company since 2009, when the volume of business had increased dramatically. But could process innovation alone continue to fuel double-digit growth? Through this case, students will understand the concept of process innovation, and how it differs from business model or product innovation. They will learn to appreciate the factors that are required to develop a culture of constant innovation, and analyse the drivers of innovation.
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