However while this option could potentially increase

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Unformatted text preview: e: high marketing costs (due to its highly innovative nature) and increasing competition (which offers similar products promoted at lower costs). Another important factor mentioned in the case states that “[the media house] is producing premium audiovisual media content more quickly than it has been able to find interested corporate clients to sell it to”. This implies that the media houses are perhaps lacking focus and focusing on too many mediums of communication. Both alternatives have to be viewed in the context of the decision criteria, in this case, the ultimate goal of increasing profitability of the media houses. The first option is to build out. By investing additional resources into developing new, more extreme events 2 the firm will attract more customers and hence further expand their customer base. Consequently it shall expect greater brand exposure and hence an increase in sales. With more extreme events, the brand would also emphasize points of differentiation (e.g. the extreme sports connotation and hence the masculinity aspect), fading away from the points of parity (e.g. similar nutritional content as competition). However, while this option could potentially increase the market share in the long term, it also presents itself in...
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This note was uploaded on 11/24/2013 for the course COMM 101 taught by Professor Paulcubbonandjeffkroeker during the Fall '12 term at University of British Columbia.

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