Group Assignment #3.docx - Channel 4 Case Discussion A...

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Channel 4 Case DiscussionA preliminary SWOT analysis of Channel 4 finds that its strengths include increasing revenuewith which to self-invest, weaknesses include a small budget which limits its ability to winbidding wars, opportunities include a variety of new options for growth provided bytechnological innovations in the TV industry, and threats include established and wealthiercompetitors from BBC and ITV. Channel 4’s strategy allows them to deal with the barrier to newentry force by already having a devoted viewership and the threat of substitutes by having areputation for providing high-quality and unique content. However, Channel 4’s strategydemands that it constantly adapt to the proliferation of new media outlets while providing to itsniche audience in order to stay ahead of both new and old competition. Channel 4 hasmaintained a national competitive advantage by developing its demographic of young viewersthrough its dedication to alternative programmes, while also being provided a global competitiveadvantage through the sheer international penetration of British TV. Channel 4 can augment itscompetitive position by developing a companion app for both live streaming and video on-demand in order to take advantage of the spread of mobile phones.
SWOT AnalysisChannel 4 (C4) has a history of innovation and survival, and now as it enters the future it must continue to develop and innovate in order to survive and grow. C4 has its share of strengthsand weaknesses and has opportunities to exploit and threats of which to be wary. C4’s strengths include increases in revenue over the last few years. With this increase C4 can continue to invest in and grow its company. Next, C4 was able to find its target audience, being the age group of 16-34 years old. Knowing the target audience C4 can provide appropriate programming for this age group and sell advertising that suits the target age group as well. Lastly, another strength is its ability to produce quality programming, exemplified by its nomination for 17 Oscars in 1994.Channel 4 has had some weaknesses it could improve upon as well. One being that C4 tends to lose bidding wars against its competitors who have larger budgets. Another weakness is that C4 cannot produce its own content and must obtain it from another source, C4 cannot produce its own advertising. C4 has also been criticized for not risking enough, especially duringthe dot.com boom. C4 is also presented with lots of opportunities for exploitation in the coming years. UKTV is always changing and C4 should take advantage of this. C4 can invest more of itsresources into online TV platforms such as interactive TV and new delivery methods of content. Furthermore, if C4 continues to keep the quality of its content high, it may add a subscription plan for customers to pay for. Overall, the technological innovation seen over the last 30 years should allow for C4 to continue to innovate and obtain a larger audience share.

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