Fashion Channel Case Studey

Identification of the strategic issues and problems.

The first issue for TFC was being the first of its kind for the market. TFC was the first network that was totally dedicated to fashion. There were no competitors for TFC from 1996 until 2006. There was little to know need to maintain a competitive advantage. This type of dominance caused TFC to keep their marketing strategies broad instead of focusing on a particular segment. The only marketing strategy was to appeal to everyone which had proven to be successful in the first 10 years.

In 2006, other networks began incorporating fashion into their networks which were more targeted and focused on particular views. These networks surpassed TFC in ratings due to their versatility of viewer options. These new emergent competitors have caused a serious strain on TFC ratings which could lead to the cancellations of the network. TFC must develop a targeted strategy that will increase TV ratings and advertising revenues for the company.

Analysis and evaluation

Strength:

* First of its kind (niche)

* Broadcasting on a TV network 24/7

* Appealing to people that enjoy shopping

* Available in the basic packages of cable TV or Satellite

* Provides constant updates and trends in the world of fashion

* Appeals to women between the ages 35-54

Weakness:

* No specific marketing focus or segmentation target.

* Lack of competition at start-up

* Grew too big too quick in the industry without a marketing plan

* No diversity in the programs offering

* TFC only offer fashion on their network

* Members of leadership is resistant to change

Opportunities

* Expand program diversity

* Target a specific segmentation, strategy, and brand.

* Could increase advertising revenues by changing and increasing rating

Threats

* Rise of competition that has a more diverse program

* Price of a unit of advertising could drop by 10%

* Change could cause viewer...