Motivation: Competition and Life Cycle Essay

Submitted By paemimah
Words: 2414
Pages: 10

The assignment is to answer three questions.

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|Questions one | | | |
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|Television channel operating profits vary from as high 45-55% at MTV and Nickelodeon down to 12-18 at NBC and ABC. Provide a Porter Five| | | |
|Forces analysis of each type of network. Why is MTV so profitable relative to the major networks? | | | |
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|Please answer this question in about 400 words. Below are two examples of how it was answers. Please don’t copy this information, im | | | |
|just providing it as an example. If you MUST use any of the information below, please do not use the exact wording. | | | |
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|Example one | | | |
|In order to ascertain why MTV is so profitable relative to other major TV networks, I will perform a Porter’s Five Forces analysis. For | | | |
|purposes of the analysis below, MTV and Nickelodeon will be referred to as “MN” and NBC and ABC will be referred to as “NA.” | | | |
|Threat of Substitutes: | | | |
|MN – MN has a niche market of TV viewers and is only available to cable subscribers. They are not easily substituted because they have | | | |
|already cornered most of the market and have established a brand. | | | |
|NA – NA are both news channels that are available for free on TV. They miss out on the extra cable subscriber revenue and have much more| | | |
|competition. They are more easily replaced because of the high number of options. | | | |
|Threat of Entry: | | | |
|MN – It would be very difficult for another company to become a real competitor for MN because they target a niche market and are | | | |
|already the brand names for those watchers. | | | |
|NA – Loyalty to news channels is less prominent and there are dozens of news channels already out there. It would be relatively easy for| | | |
|another news company to become a leader in the sector. | | | |
|Power of Buyers: | | | |
|MN – MN offers a wide range of TV shows that appeal to many different types of people within their niche market. Many of their consumers| | | |
|are already obsessed with many of MN’s TV shows and they therefore have the upper hand. | | | |
|NA – NA are free channels and therefore the watchers have complete power. | | | |
|Power of…