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
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