Restructuring of Canal Plus Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

Canal plus is a famous French cable television channel which was launched back in the year 1984. It is completely owned by one and only Canal plus Group, which consecutively is owned by Vivendi SA. The channel actually broadcastsnumerousprograms and majority of them are encrypted. The programs which are un-encrypted can be seen free of cost on the Canal plus. Canal Plus is a follower of a well-knownHybrid Broadcast Broadband TV formally known as HbbTV. Soon after the declaration about the launch of the new 14 French television channel, Canal plus quickly started broadcasting back on 4^th November 1984.Back in the year 1986, the channel had arounda massive figure of1 million subscribers. It has actually produced several films of auteur, including famous David's The Straight Story.

Growth Initiatives

To pull more and more subscribers, the channel from its inaugurationworked enormously hard to become somehow different from the other conventional television channels.To get the best outcomes management paid attention on pleasing the entire segment of French viewers by presenting three different types of programs. The categories were based on amusement programs focusing on creativity and humor, live movies and sport specifically the world famous French football League. Moreover, in addition to this innovative product mix, the channel followed an aggressive direct marketing strategy which wasn’t initiated by anyone else in this industry.

As per the founder members of the channel, the most important key success factor lied in establishing an exceptional relationship with these subscribers.In that span of time the direct marketing approaches were quite new among these French companies and most significantly the Canal Plus was a pioneer in this regard by introducing up one of its 1^st call centers which was formally called the CAT' which stands for Centre d'Accueil Telephonique. Back in the May 1986, Canal Plus managed to boast more than 1 million viewers and back in 1987 more than 2 million people in households had a subscription. Canal Plus was viewed as one of the greatest success stories in the media history.

Industry Analysis

The worldwide Broadcasting Industry without any doubt has witnessedsome vital technological advances inthe recent times, with exceptional features like VOD (Video on demand), IPTV, Mobile TV and the famous DVR’s (Digital Video Recorders etc.), gettingincreasingly conventional. At the same span of time, the futureof these advertisements, which compriseof a majorportion of the broadcasting profits, has become quite uncertain with the initiation of technologies that actually allow ad skipping. The most important playersin the industry are always forced to acquire new technology, though they are uncertain of the potential of these new technologies on the strategic basis.

The television industry across the entire globe has developed into a fascinatingglobal business with local modifications, multiple strategies and a wide range of accomplishment issues. The international media groups and even national players have tried their level best to balance their approach between consistency and adaptation of technology in this industry to penetrate more and more into the marketplace. During the time period of the late 1980s, some of the multinational media groups were only in the industry to compete eachother and even less global brands were doing advertisingin the television industry. Some of the famous TV channels in the industry are: CNN, BBC, ESPN, Euro-sport,Disney, MTV, National Geographic Channel, Discovery, Bloomberg and CNBC.

Business Model Analysis

From the beginning the business model of the canal plus has been quite different from its competitors.The canal plus actually follows the historical and somehow a conventional business model of a famous French channel, each state had simulated and distinguished the business model simultaneously. The simulation and differentiation were only possible for the reason that each and every channel was broadcasting only two major program categories that is sports and movies on different demands. For example, a subscriber in Madrid and in Warsaw might ask for the similar sport offering like football, butthere is an immense possibility that they might not agree for the similar movie other than some local and Hollywood hits.

Human Resources,Strategy Analysis and Challenges

Being a visionary person Andre Rousselet founded Canal plus back on 4^th Nov 1984. The vision was quite clear from the beginning that he is interested in setting brand new terrestrial channel in the land of France and he succeeded. From the begging there was no major additions in the company human resources from the industry, which became a serious problem later on. The Channel became stronger due to the participation of a French public company and a well-known market leader in wastewater management and the famous Havas media group in which they hold the stake of around 15%.

The company’s first major challenge was to develop the first every pay TV channel which could survive at any cost and then later to make it profitable. To accomplish his goals and mission, he has two main strategies which can make him...............

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