Swot analysis is a tool used by managers to identify the strengths, weaknesses, opportunities and threats of an organization in an internal and external environment. Those four major categories will be used to analyse the entertainment industry. The entertainment industry is a group of sub-industries dedicated to entertainment. Generally, the entertainment industry is based on cultural arts, dance musicals, opera, music, television, and radio. The entertainment business involves investors who seek a profitable product to gain revenue in a number of ways.
Strength- The biggest advantage in the entertainment industry is that information can flow very quick due to the internet, cable TV and radio. The entertainment industry is well-developed and also generally known to provide high quality entertainment to a vast number of people around the world. Radio, TV entertainment and many more products are designed to bring amusement to a customer. Entertainment industry has a very low production cost which means that it is easily available to produce in a mass content.
Weakness- Due to mass marketing and fast speed of entertainment information can lead to rumours, lies, and incorrect information. Modern media have also changed privacy of people around the world. Facebook is a well know entertainment information source for people, but today personal information on Facebook page can lead to serious privacy issues. The internet is a genuine problem for younger users, kids go online and surf the web, play violent video games, or watch pornographic material.
Opportunities- Low entry barriers, we live in a modern world where technology never stops developing and plays a major part of us. As we increase the usage of digital technology, the decrease in start‐up costs also occurs due to movement in technology. New distributing channels can be used to promote the entertainment industry forward to increase consumer interest. Digital technologies represent an industry wide opportunity, the cost will go down due to revolutionary technology.
Threats Millions of people around the globe illegally download material on day to day basis. Digital pirating is a major threat on entertainment industry since the industry is losing millions of dollars per year. Digital Pirating is closing developing entertainment industry due to the stealing of profits.
The entertainment market continue to shape the media and entertainment industry. New technology is now able to transfer information very quickly and it evolves extremely rapidly, to form new business. Internet has gave us an ability to experience freedom of entertainment industry. Unfortunately consumer habits are changing and piracy became a major threat to the industry triggering an immense cash lost.
STEPP analysis of entertainment industry
STEEP is tool used by managers to identify the: Social, Technological, Economical, Environmental and Political to investigate the environment it’s operating in. Entertainment industry is a group of sub-industries dedicated to entertainment. Generally, the entertainment industry based on, cultural arts, dance musicals, opera, music, television, radio, and internet.
Political– The Digital revolution is expanding but has many issues to face. One of which is the number of lawsuits it has faced due to copyrighted content. This has led the entertainment industry to take an extra precaution due to future lawsuits. Online piracy is closing many developing entertainment industries due to the stealing of profits.
Economical- The pressure is rising to sell more printed based information. Profits on news papers and books are not as high and this means that authors are not able to make enough revenue. Technology has undermined the economics of book publishers and authors. Fortunately online books and reading material help the economy because people all over