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Entertainment Industry Analysis |

Prepared by Team 10: |

Nicole AbercrombieRachel AustinJessica EliaJessica ReedJenni Torres |

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GM 105 – Strategic ManagementDr. Lindle HattonCalifornia State University SacramentoMay 13, 2011 |

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Table of Contents

Introduction 4

Dominant Economic Indicator 6

1. Market Size: 6

2. Scope of Competitive Rivalry: 5

3. Market Growth Rate: 7

4. Numbers of Companies in the Industry: 7

5. Customers: 9

6. Degree of Vertical Integration: 10

7. Ease of entry/exit: 10

8. Technology/Innovation: 10

9. Product Characteristics: 11

10. Scale Economies: 11

11. Experience Cure Effects 12

12. Capacity Utilization 11

13. Industry Profitability: 13

Six Forces of Competition 13

1. Threat of New Entrants 13

2. Bargaining Power of Suppliers 14

3. Bargaining Power of Buyers 14

4. Threat of Substitute Products/Services 15

5. Intensity of Rivalry among Competitors 15

6. Relative Power of Other Stakeholders 16

Competitive Position of Major Entertainment Companies 17

Competitor Analysis 19

News Corp. 19

Time Warner 20

Viacom Inc. 21

CBS 21

Key Success Factors 22

Industry Prospects and Overall Attractiveness 25

Factors Making the Industry Unattractive 27

Profit Outlook 28

Conclusion 30

References: 31

Introduction

The following report is an analysis of the diversified entertainment industry. The entertainment industry is a constantly evolving group of corporations with limited competitive pressures. Revenue trends in certain core segments, including broadcast television, media networks and radio, tend to vary with consumers' and advertisers' preferences towards new forms of media (Value Line, 2010). As long as people have had discretionary time and money, the entertainment industry has thrived, and as personal incomes grew, so did the industry. Although the entertainment industry has proven to be quite resilient even in times of tough economic...