British Satellite Broadcasting versus Sky Television Case Study Solution
Bargaining Power of Buyer:
The product offered to the customers with high quality and their trust over the brands reduces the bargaining power of buyer. However, it may range from low to moderate to high, completely depending upon the type of buyer. The reputation, efficiency of the service and the quality of the product reduces the bargaining power of buyer. Whereas, BSB has inefficient services with the shortage of the product supplied and the high prices of the product might contribute in the increased power of buyer bargaining.
VRIO Analysis:
The VRIO analysis is an analytical tool to determine the state of the company in the market. Though, BSB is the British company trended in the broadcast industry, but is now facing a number of key issues, which have affected the reputation of the company in the broadcasting industry. This is analysed by the considering a number of resources to determine the state of the company and its competitive advantage. The resources considered for this analysis were the reputation of the company, its financial resources, team management, innovation and creativity on the basis of four key factors – valuable, rare, costly to imitate and organization. The analysis conclusively showed that the company is facing a competitive disadvantage imposing a threat of intense financial instability.
Alternatives:
Prototyping:
Before the launch of any product in the market, the company should do a prototyping as it will help the company in better analysis of its products pros and cons.
Pros:
- It will assist in preventing the financial loss due to the massive production of the product which might have errors.
- It helps in the evaluation of the popularity of the product and can significantly predict the success rate of the product.
Cons:
- Threat of disclosure of your creative innovation before its launch in the market.
- The launch of a substitute product before the product launch in the market with the access of similar features.
Management strategy and Strong Distribution Network:
The company should have a strong team effort and better understanding with the staff.
Pros:
- It helps in facing number of challenges and risks with courage leading to success.
- Development of wide distribution network will assist to provide the stock in the areas according to their needs.
- There will be no shortage of products and customers will be sure about what they need.
- Increase in the sale will help the company in maintaining its financial status, and to further improve its product line.
Cons:
- It requires vast investment in the development of massive of products to meet the needs of customers.
Recommendation:
For the key issues that BSB is facing in recent times, two of the strategic alternatives have been suggested. First one is the prototyping of the product to be launched and second one is the management and strong network of distribution. Among the two strategies proposed to resolve the issues BSB is facing that are hindering the company to trend in the broadcasting market, second alternative is considered as the most effective one and, will provide the long term benefit to the company
Conclusion:
The Broadcasting industry in United States has a number of strong competitors wishing to lead in the industry. The BSB and Sky Television are the recent tough competitors in the industry. BSB is facing some problems, which might lead the company in financial instability. For this purpose, the company is provided with two alternatives to help the company in retaining its reputation and regaining its financial stability. The best alternative is to consider the strategy of management and strong distribution network, which will provide the company with long term advantage.
Exhibits:
Exhibit 1
| Strength | Weakness |
| · Reliability of the process
· Satellite dish with more advanced standards of D-MAC. · High quality products. |
· Weak financial status.
· High investment in the promotion and advertising of the product. · Large share of stakeholders. |
| Opportunities | Threat |
| · Innovation of a unique, innovative product and efficient service.
· Global expansion of business. · Increased sale and high revenue rate. |
· Strong competition.
· Low cost and high quality products offering by the competitors. · Financial instability. |
Exhibit 2
Exhibit 3
| Resources | Valuable | Rare | Imitate | Organization | Competitive Advantage |
| Reputation | Yes | No | Yes | No | Temporary Competitive Advantage |
| Team Management | Yes | Yes | No | Yes | Unused Competitive Advantage |
| Innovation and creativity | Yes | Yes | Yes | No | Unused competitive Advantage |
| Financial Resources | Yes | No | No | No | Competitive Disadvantage |
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