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Compact case
Case
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Reference no. 305-295-1
Published by: Cambridge Judge Business School, University of Cambridge
Originally published in: 2008
Version: 14 November 2013
Revision date: 15-Nov-2013

Abstract

This is part of a case series. Channel 4 is a UK-based television broadcaster with both public service responsibilities and commercial imperatives. The third largest player in the UK television industry, its competitive advantage stems from its unique brand and production values, a desirable audience profile and its capability to operate a core terrestrial channel whilst extending into the digital arena. Yet, Channel 4 faces a turbulent environment characterised by industry consolidation and convergence, competing and non-traditional media choices for consumers, and the entry of new content producers. Competition for audience share is at unprecedented levels and the traditional industry value chain is under considerable threat. Against this backdrop, the industry continues to face a flat advertising sales market - a major source of revenue. Increased uncertainties in terms of future funding also place additional pressure on the Channel's resources. Case (B) is a short corporate strategy case. It focuses on Channel 4's latest strategic review, on Channel 4's current strategic positioning, and on the strategic and financial options open to Channel 4 to ensure the long-term sustainability of its business model. It raises issues of identification and construction of a competitive advantage and on the sustainability of such an advantage through time. Case (B) may be used on its own, however it is best used as a conclusion to the discussion of case (A). Case (A) is a business strategy case aimed at illustrating issues of strategic positioning in dynamic and fast moving environments. It allows participants to cover all levels of industry analysis, from the macro-environment of the organisation to its competitive environment and its positioning within a specific strategic group. It also allows participants to reflect on values, mission and strategic orientation of a single corporation through time.
Location:
Industry:
Size:
< 800 employees
Other setting(s):
2013

About

Abstract

This is part of a case series. Channel 4 is a UK-based television broadcaster with both public service responsibilities and commercial imperatives. The third largest player in the UK television industry, its competitive advantage stems from its unique brand and production values, a desirable audience profile and its capability to operate a core terrestrial channel whilst extending into the digital arena. Yet, Channel 4 faces a turbulent environment characterised by industry consolidation and convergence, competing and non-traditional media choices for consumers, and the entry of new content producers. Competition for audience share is at unprecedented levels and the traditional industry value chain is under considerable threat. Against this backdrop, the industry continues to face a flat advertising sales market - a major source of revenue. Increased uncertainties in terms of future funding also place additional pressure on the Channel's resources. Case (B) is a short corporate strategy case. It focuses on Channel 4's latest strategic review, on Channel 4's current strategic positioning, and on the strategic and financial options open to Channel 4 to ensure the long-term sustainability of its business model. It raises issues of identification and construction of a competitive advantage and on the sustainability of such an advantage through time. Case (B) may be used on its own, however it is best used as a conclusion to the discussion of case (A). Case (A) is a business strategy case aimed at illustrating issues of strategic positioning in dynamic and fast moving environments. It allows participants to cover all levels of industry analysis, from the macro-environment of the organisation to its competitive environment and its positioning within a specific strategic group. It also allows participants to reflect on values, mission and strategic orientation of a single corporation through time.

Settings

Location:
Industry:
Size:
< 800 employees
Other setting(s):
2013

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