Appendix 3. Porter 5 forces analysis. Independent TV production industry

 

1. Bargain power of customers: High

ü Every customer(TV broadcast organization) has a lot of commission companies to choose, but the commission company has limit quantity of customers

ü The customer can make programmes by itself

2. Bargain power of suppliers: Medium

ü Large number of companies who provide labour force for outsourcing

ü Famous actors, specialist facilities owners, prominent directors cannot be immediately available, and must be paid well

3. Threat of new competitors: Medium

ü To be commissioned by national broadcasting organization, the company should have good reputation, experience - not very easy to obtain

ü To make successful quality programmes the company should be innovative, should have reliable managers and good production skills – easy to obtain

4. Threat of substitute products: Medium

ü If programme ideas are innovative, then there is no threat

ü Many companies provide high quality programmes, so viewers can easily switch to watch them

ü Tastes of the viewers quite different from each others

 

5. Intensity of competitive rivalry: High

ü A large number of small independent TV production companies exist and each company’s market share is small.

ü The US-made programmes are very popular.

ü Decreasing level of fee from broadcasting companies