Executive Summary
The broadcast television industry contains four dominant players: ABC, NBC, CBS and Fox. Statistics show that 98% of homes in America have television sets. As a result ABC competes to obtain the viewership of these homes in order to sell air time to advertisers. Advertising revenue consisted of $1.6 billion for ABC in 1997; for this reason, the advertiser is ABC's primary focus.
As of February 1996, ABC is a wholly owned subsidiary of the Walt Disney Company. This powerful entertainment conglomerate has proven to be a great asset to ABC's operations. Disney has the financial strength to support ABC's future projects, as well as the brand name recognition to boost ABC's programming and ratings. ABC also maintains relationships with its viewers, advertiser and competitors: CBS, NBC and Fox.
There are many opportunities in this industry, including favorable government regulations, and media support as well as foreign expansion. But some of these opportunities are overshadowed by the threats from Cable television, technological advances, and strong competition. These factors can be paired with ABC's internal strengths: increasing revenues and Disney support to reach a few powerful strategic options.
After careful evaluation of these factors, the following strategies appear to be complimentary to ABC's current industry position: market penetration, market development, backward forward and horizontal integration, and product development and joint venture strategies. Upon further consideration, a market penetration strategy would be most effective for ABC considering the networks current position in the television market. This strategy is best suited to help ABC regain its stronghold in the industry.
Mission Statement:
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