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BBC Case Solution

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BBC is the national broadcasting company of United Kingdom located in London. Founded in 1922 the company has the legacy of covering local and international news and considered as one of the top broadcasters around the globe (BBC, 2021). Started as the news channel the company later diversify into other fields and is now considered as one of the largest television networks. This report will focus on the internal and external environment analysis of the company using its product and services. This report is an analysis of the product and services portfolio of the company which will be done with the help of various matrices In the second part the strategic analysis of the company will be done which will be done by using various strategic frameworks and in the last part, internal strengths and weaknesses analysis will be done which will use for recommendations.

Following questions are answered in this case study solution

  1. Introduction

  2. Product and Services Analysis

  3. Strategy Analysis

  4. SWOT Analysis

  5. Recommendations

  6. Conclusion

Case Analysis for BBC Case Solution

2. Product and Services Analysis

The product portfolio of the company is diverse consisting of BBC earth, BBC first, BBC brit, cbeebies, BBC life style, BBC Knowledge , BBC entrainment, Kids, BBC America, BBC Canada (BBC, 2021). In addition to the products, BBC has created many sub-brands like the Doctor Who, Sherlock, and Top gear (BBC, 2021). The company is successfully utilizing traditional media channels, the internet, social media, and virtual and augmented reality to create and connect with the audience. The product and services analysis can be done further by using the below-mentioned matrices.

i. BCG Matrix

Created in 1968 the BCG matrix is used as a tool for the evaluation of different products of the same brand (BCG, 2021). The two-axis measure the growth and relative market share mix for the products. In the four quadrants of the matrix, the first one is devoted to the start product the one which are used for the top performers while the lasts are used for the dog product which has no potential for growth in terms of money and relative market share

The BCG matrix can be applied to the product portfolio of the company as per its relative market share and growth potential. The products with high relative market share and growth potential are usually in the growth phase while the products with lower relative market share and growth potential are at the opposite end of the spectrum. For better understanding with respect to the BBC product, it is important to analyze the comprehensive market share of the BBC products.

It is clear the BCC is the top broad caster in terms of market share. However, among the BBC product portfolio, BBC news is most important and can be considered as the star product (BBC, 2021). Not only through traditional media channels but in terms of online content BBC website dominates the online news market (Greenslade, 2016). It has been found that in the digital news market BBC has accounted for more than 30% of the relative market share (Greenslade, 2016). The reason for this dominant relative market share is the credibility of the channel which has been given the status of the national broadcaster for the country.

Since the news channels are generating most cash flows and have the most dominant relative market share it is definitely placed in the first quadrant and considered as a star product. Among other popular sub-brands or product of the company, BBC earth stood at the second place. Famous for its programming and marketing innovations BBC earth has the relative market share of 22% and has strong potential for growth (Afaqs, 2020). The main competitive advantage of this channel is its content which acts as the predecessor for driving cash flows and growth for the company. This product has future growth and potential for driving more cash flows especially because of its popularity on digital channels. It can be considered as the question mark product which currently has the low relative market share but has huge potential for growth in the future (BCG, 2021). In the same category the products like Top Gear and Doctor Who brand also stand which are sold in over 200 countries and are at their nascent stages of the development (BBC, 2021). All of these products can be considered as the question mark product on which the company should invest as they can develop into star products (BCG, 2021).

Among the worst-performing products is the example of BBC 3 which needs to be closed because fits low viewership and a shrinking relative market share of 1.5% (Plunkett, 2015). Shows like Snog Mary avoid were criticized by audiences and did not receive good reviews from the market (Plunkett, 2015). The channel was ultimately closed and the similar channels BBC 1 and 2 also received criticism and lower viewership from the audience. Some of the comedy brands of BC were also critiqued and did not show much potential for growth. All these sub-brands and products should be considered in the last quadrant.

The most profit-generating yet mature product of BBC is certainly its news channels and the products like BBC America and Canada (BBC, 2021). Although these channels are run with the help of other broadcasting partners they have shown growth and have reached the stage of maturity and can be considered as cash cows which are generating cash flows but do not have much potential for future growth. The operating cash flows from these products are certainly higher.

The limitations of the above-mentioned analysis include that the actual growth rate cannot be determined with certainty for different products. Also, it does not take into account the factors of experience accumulation which is important for analysis among the companies like the BBC which are old and are for a considerable amount in markets.

ii. McKinsey/GE Planning Grid

In addition to the above-mentioned BCG matrix, McKinsey GE planning grid is another tool used for product portfolio analysis. It measures the competitive strength of a business index across the industry strength into 9 quadrants (EPM, 2021). This matrix helps in distinguishing the products which have the potential for future growth vs. those that do not stand any chance using the criteria of competitiveness of the business unit along with the industry competitiveness paradigm.

This matrix helps the business in analyzing the competitive products from the noncompetitive one so that business can invest on the products which have the potential to generate high ROI in future. The company can also decide to divest the business units which do not show any high potential across their own competitiveness and industrial growth (EPM, 2021).

GE Mc Kinsey Matrix

 

Online Streaming

Sports

 Pod casts

 

Entertainment

News

BBC3

Industry Attractiveness

 Audio products

 

 BBC2

Business Unit Strength

As per the application of this matrix to the product portfolio of BBC the companies' potential growth units are news, earth and knowledge, and life style brands (BBC, 2021). Despite of mature market for these products, these are high in demand and BBC has a competitive position given its strong brand name and strengths for these segments. Among the industry attractiveness, the growing market of digital streaming channels offers another growth opportunity for the company. With the rise of platforms like Amazon Prime and Netflix, BBC can also start an internet streaming channel for future growth opportunities. Sports channels are also in demand and will always be given their importance for streaming live events so BBC can take advantage of that opportunity too for increasing its relative market share and viewership in the related market.

The product the needs to be on hold are those whose potential for future business is bright (EPM, 2021). It cannot be determined with certainty what the future holds for these products although the company invests in those products in any way to generate potential profits. Among these products are question marks from the BCG matrix. Among the BBC product portfolio, BBC podcasts and audio products also fall under this category. Although they have not reached maturity or any breakthrough growth yet, these products are showing the potential. BBC was the partner of the Glastonbury festival and broad-casted live events as well as radio programs during the event (BBC, 2020). The listening products of BBC are among the ones which can generate cash flows and have strong potential for growth in the future. These products need to be invested as they have strong chances of growth based on their own competitiveness and industry potential. The company is investing on its audio products as BBC radio has an 83% rating on its standard of quality metrics (BBC, 2020).

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