Business Report: Sky Network Television Limited

Table of Contents

Part A

Part B

Section 1

Section 2

References

Introduction 

The company Sky Network Television Limited is one of the famous media and entertainment companies in the country New Zealand. In addition, the company provides multi-channel, pay television and free-to-air television services to the customers. Moreover, the company also provides some of the potential services like Television, movies, sports programs, entertainment programs and others (Bhasin, 2019). In the same context, the firm also offers more than 750,000 satellite and live demand programs to the customers. Some of the television services provided by the company are the sky starter, sky entertainment, sky movies, sky sports, pay per view, sky Go, sky TV business and others. Furthermore, the company also deliver new content ideas, technologies and services to the subscriber. It has been evident that the company Sky Network Television Limited has adopted some of the latest innovations in order to provide some unique entertainment content to the customers. 

The strategic management planning is the type of organisational management activities in which the company will be able to focus on its resources and operations. In addition, the strategic management plan will also help a business firm to ensure that the employees and the stakeholders are working on the common goals of the company (Channon, 2016). Therefore, the company Sky Network Television Limited must try to use the strategic management plan in order to help the employees to focus on its goals. This will help the company Sky network to develop its reputation within the business market of New Zealand. Moreover, the company will also be able to establish a proper organisational function with the help of strategic management plan. On that note, the authorities of the firm must try to set their resources in such a manner by which the profitability rate can be maintained in an effective way. 

Environmental scanning

External environment analysis

PESTLE analysis

Political- The political factors of the country New Zealand mainly includes the stable Government and strong rules and regulations. It has been observed that after every three years the country appoints a new Government and implement its own rules and regulations (Clarke, 2017). This can create a major impact on the company Sky Network to manage its business function. In addition, the new rules and regulations over the Television content by the new Government can also affect the services of the firm Sky Network. Moreover, the company will also have to change its policy after three years due to the changing nature of the New Zealand Government.    

Economical- The GDP rate of the country is near about $20 billion which is more than 3% of annual change. The GDP rate of the country grew by more than 2.8% in the year 2018 (Desai, 2019). In addition, the population of the country is near about 7 million which has helped the country to grow its economic position. 

Social- The social components of New Zealand are very brilliant when contrasted with different nations. Moreover, the interest rate nation New Zealand is high which can influence the monetary circumstance of the nation. Moreover, the country is totally dependent on the other developing countries for getting new technology (Echchakoui, 2018). The people of New Zealand do not have good knowledge about new technologies as well. Therefore, it can affect the company Sky Network in adopting new technologies for their services. On that note, the company can face major issues in adopting innovation for providing new services to the customers. 

Technological- The dependable nature on technologies of New Zealand on other countries can affect the organisation Sky Network to adopt new services. In addition, the absence of development in New Zealand will likewise make a noteworthy issue for the organization to facilitate new entertainment programs for the customers (Mežinska, 2013). This will also affect the sustainability position of the firm. Furthermore, the company can also face problems in developing a strong network system due to the lack of technology in New Zealand. 

Legal- As the Government of New Zealand changes after every three years, therefore, the standards and guidelines of the nation is additionally changing after at regular intervals (Haselwanter, 2016). Moreover, the exacting guidelines and guidelines of the Government over media outlets will affect the company Sky Network to bring out more entertaining content within their services.  

Environmental- The nation is viewed as one of the most perfect nations on the planet. The guidelines and guidelines of the Government over the environmental conditions have helped the country to maintain its ecological system. Therefore, the company Sky Network must try to implement green policies within the organisational services by which the sustainability can be maintained. 

Four key drivers of change in PESTLE analysis

Improper organisational culture

The improper organisational culture of the organisation Sky Network will affect the working process of the employees. In addition, the employees will also face major problems in maintaining their high performance due to improper organisational culture. Moreover, the improper organisational culture will also affect the business model of Sky Network (Mežinska, 2013). On that note, the company will face issues in managing its services as the culture is not good. The inappropriate hierarchical culture of the association Sky Network will influence the working procedure of the representatives. What’s more, the representatives will likewise face serious issues in keeping up their superior because of ill-advised authoritative culture.

Lack of leadership- The leadership strategy mainly helps a business firm to monitor and motivate the staffs in such a manner by which the goals can be achieved. In the same context, the lack of leadership in the company Sky Network will affect the performance of the employees (Ogiela, 2015). The employees of the firm will not be able to provide proper services to the customers as well. Due to the lack of leadership, the company will also not be able to manage the customer loyalty. Therefore, it can be said that the leadership problem in the firm must be mitigated by which the customers can enjoy the low cost broadcasting services of Sky Network. 

Lack of technology- As the company Sky Network is already facing issues in gaining maximum subscriber; therefore, the technology will play a major role in maximising the service operation of the company. The lack of technology will affect the company in delivering proper Television broadcasting services to the customers (Veselovsky, 2015). Moreover, the customers will also not be able to watch some unique entertainment program by installing the Sky TV. On that note, the company will face major problems in attracting the loyal customers towards its services. Due to the lack of technology in the organisation, the shares of the firm have also fallen down in a rapid manner. 

High competition- The evolvement of Internet television services has created a major impact on the financial position of the company Sky Network. In addition, the high competition in the market of New Zealand will also affect the company in gaining company’s loyalty (simplicable, 2018). Moreover, the company will also face major issues in developing its profit rates as the rival companies may try to bring out maximum broadcasting services at low price.

  1. External Factor Evaluation matrix

 

Key External factors

Weight 

Rating 

Weight score

Opportunities

   

1. Low cost services

0.11

3

0.33

2. Adopting new technologies

0.09

5

0.45

3. Collaborating with other Television service companies

0.24

3

0.72

4. Implementing change management

0.10

2

0.2

5. Lowering the price for sports content

0.21

4

0.84

6. Accepting the New Zealand rights to English Premier League 

0.12

3

0.36

7. Bringing out more entertaining broadcast services for attracting the customers

0.13

4

0.52

Threats

   

1.  The changing nature of the New Zealand Government

0.13

3

0.39

2. Lack of technology

0.12

2

0.24

3. High price of subscription package

0.21

4

0.84

4. Rejecting rights to English Premier League

0.10

5

0.5

5. Internet-based companies

0.24

2

0.48

6. Improper management techniques

0.09

3

0.27

7. Subscriber loss

0.11

4

0.44

Total

2

——

6.58

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Responding to opportunities 

The company Sky Network Ltd must try to identify the opportunities that are available in the market of New Zealand. In addition, the opportunities like adopting new technologies and reducing the cost of subscription packages will help the company to gain the loyalty of the customers (skygroup, 2019). On the other hand, the company will also be able to compete with the internet service providers as well. A large number of subscribers will also get attracted by lowering the prices of the subscription packages and sports packages. The collaboration strategy can also be appropriate for the company Sky Network to collaborate with other television service providers in order to broadcast maximum number of channels. 

Responding to threats

The company Sky Network Ltd must try to responds on the threats like changing policies of the Government, lack of technology, internet television service companies and high subscription price. It is very important for the management of the company to implement the organisational policies as per the Government so that the business process can be operated in an appropriate manner in New Zealand (skytv, 2018). In addition, the company can also try to cut down the prices of subscription packages and the sports packages by which maximum number of subscribers can be attracted. Moreover, the adoption of new technologies can also be an appropriate strategy for the firm in order to provide unique content to its broadcasting packages. On the other hand, the company can also try to bring out the internet service facilities for the customers so that the customers can enjoy various types of entertainment programs by installing the Sky TV. Therefore, it can be said that the company must try to analyse its threats so that the business process can be developed in the New Zealand market. 

4. Porter’s five forces analysis

Threat of new entrants- The threat of new entrants like internet service television will affect the sustainability rate of the company Sky Network for doing business in New Zealand. In addition, the new broadcasting television services can also damage the profit rate of the company as well. Moreover, the firm Sky Network can also face issues in attracting maximum subscriber within its business market with the entrants of new companies (visionnz, 2019). 

Threat of substitution- The Company can also face major issues with the substitution of the services. In addition, the rival companies of Sky Network can also come up with new broadcasting services at cheaper rate for the customers. This can make a noteworthy harm on the business procedure of the organization Sky Network (Veselovsky, 2015). Due to this issue, the company can also loose maximum number of potential subscriber from its business process. Therefore, for addressing this issue, the company Sky Network must try to bring out new broadcasting services by which the customer’s loyalty can be regained. 

Bargaining power of buyers- The customers can try to bargain with the service providers of Sky Network for providing services at cheaper rate. In the same context, buyer often tries to get high quality of services at low rate (simplicable, 2018). Therefore, the authorities of the company Sky Network must try to consider the bargaining power of buyers in order to maintain its profit rate. 

Bargaining power of suppliers- The suppliers of the company Sky Network may try to bargain with the agents of the company in order to buy low rate of broadcasting channels at higher price (Bhasin, 2019). In addition, the suppliers can also try to provide improper quality of raw materials to the agents of Sky Network at high price. This can affect the service quality of the Sky Network in a prominent manner. 

Competitive rivalry- The rival companies of Sky Network mainly includes the Netflix can try to provide maximum amount of channels to the customers at lower price (simplicable, 2018). This can influence the sustainability rate of the organization in the market of New Zealand in an unmistakable way. 

Internal Environmental Analysis

5. Key strengths and weakness of Sky TV Ltd

Strengths- The strengths of the organisation Sky TV Ltd mainly include the cricket rights and lowering the price of some subscription plans. The reputation of the company among the customers of the New Zealand is also a major benefit for the Sky Network Limited. In addition, the low cost subscription for the customers can also be the strength of the organisation. By lowering the subscription packages, the company will be able to attract maximum number of subscribers towards its broadcasting services (Clarke, 2017). Therefore, it can be said that the attractive content can help the company to gain the attraction of maximum number of subscribers within the market of New Zealand.    

Weakness- In the recent times, the company is facing major issues in gaining a competitive position in the New Zealand market. The internet television services have created made a noteworthy effect on the business procedure of the Sky Network Ltd. The mind-boggling expense broadcasting administrations have additionally influenced the gainfulness rate of the firm in a powerful manner. Moreover, the company has faced huge loss in its subscribers due to the high cost of sports packages and other subscription packages (Channon, 2016). On the other hand, the issues that the company is facing at the current moment have affected its profit rate as well as its business process in a prominent way. Due to this, the shares of the company have also fallen by 22% in the New Zealand market. 

6. Four key drivers of change

Lack of proper mission and vision- Due to improper mission and vision statement, the company Sky Network can face major issues in developing its strategic goals and objectives. In addition, the improper mission and vision will also make it very difficult for the company to gain a competitive position in the New Zealand market. Furthermore, the firm will also not be able to provide maintain a strategic development due to lack of mission and vision statement (simplicable, 2018). 

Lack of organisational capabilities- The lack of organisational capabilities can damage the business environment of the firm Sky Network. Moreover, due to organisational capabilities, the company Sky Network will also face potential issues in managing its internal factors. On that note, the services like sports program, cricket, rugby and other entertainment broadcasting services cannot be managed by the management of the company. This issue can lead to huge loss of subscriber within the business market of New Zealand. 

Lack of key resources- Due to lack of key resources like subscriber and broadcasting services, the company will not be able to deliver proper services to the customers. In addition, the lack of key resources will also affect the organisational capabilities in providing more entertainment channels to the users (strategicmanagementinsight, 2014). On that note, the Sky Network Ltd. will face huge loss of potential customers within its business functions. 

Improper business strategy- Due to improper business strategy, the company Sky Network can face lot of issues. The improper business strategy will damage the whole operating system of the company’s business process (Haselwanter, 2016). Moreover, the authorities of the company will also face some difficulties in providing proper content to the customers thereby resulting in a huge loss of potential customers. 

7. Internal Factor Evaluation matrix

 

Key internal factors

Weight 

Rating 

Weight score

Strengths 

0.10

2

0.2

1. Rising the monthly price

0.08

3

0.24

2. Rising of content costs

0.07

1

0.07

3. Strong market position in New Zealand

0.25

4

1

4. Signing the rugby deal

0.04

3

0.12

Weakness 

   

1. Share fall

0.10

3

0.3

2. High price of subscription package

0.09

4

0.36

3. Losing customers loyalty

0.04

2

0.08

4. Competitive rivalry with internet television services

0.23

3

0.69

Total 

1

——

3.06

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Responding to strengths

The company Sky Network must try to analyse the behaviour of the people of its target market and raise the prices of the packages according to it. In addition, the market share values must be analysed by the marketing manager of the firm in order to earn profit from the market of New Zealand (strategicmanagementinsight, 2014). Moreover, the reputation of the company will also help it to attract more subscribers to its services. Therefore, it can be said that the strengths of the firm must be analysed and evaluated by the management in such a manner so that maximum amount of profit rates can be earned. 

Responding to weakness

The high price of the subscription packages and downfall of the company’s share in the market of New Zealand can affect the sustainability of the Sky Network. In addition, the high price services have also affected the company by losing maximum number of loyal customers (stuff, 2018). This has made it very difficult for the management to bring out some new broadcasting services for the customers. Moreover, the emerging of internet television services can be a major threat for the company to attain a competitive advantage in New Zealand. 

8. Identifying Sky’s strategic capabilities

The authorities of the organisation Sky Network Ltd have introduced some potential strategies in order to regain the trust of the customers. Some of the strategic capabilities of the firm mainly include the Apple TV style, Android power device, cheaper rate for new subscribers and a new operating system for providing Netflix interface to the customers. 

Apple TV style- The new Apple TV style will help the company Sky Network to provide a whole new Television experience to the customers (skytv, 2018). In addition, the customers will get a new experience by using the Apple TV style. This is considered to be one of the most effective strategic capabilities of the company Sky Network. 

Android power device- The management of the company has also launched application software for the users who want to watch the broadcasting channels of Sky through their mobile phones. This will help the firm to seek the attention of maximum number of customers. 

Cheaper rate for new subscribers- The cheaper rate of services for new customers will help the company to gain a sustainable position in New Zealand. In addition, the low cost services will also help the firm to attract new customers. 

Netflix interface- The Netflix interface will help the company Sky Network to provide a new experience to the users. This will help the firm to give tough competition to its rivals. 

9. Key cultural characteristics of Sky TV Ltd

Values- The values of the services of the firm must be evaluated by the business managers in such a manner by which the strategic goals can be achieved. In addition, the values of the organisation must be maintained by the employees as well as the management in an appropriate by which the working environment must be remained positive (skygroup, 2019).  

Beliefs- The interpersonal behaviours must be maintained by the business managers of the firm Sky Network in a proper manner by which the reputation can be maintained. In addition, the cultural beliefs must be maintained so that the goals and objectives can be achieved. 

Behaviours- The management of Sky Network must try to develop a positive behaviour so that the employees can work in a suitable manner (skytv, 2018). The positive behaviour of the employees will also help the firm to attract the customers as well. 

Part B

Section 1

1. New vision and mission Statements

Vision- The vision statement of the company Sky Network is to maintain a sustainable development by implementing a new operating system like Netflix Interface. In addition, the company will also offer low price broadcasting services to its new users by which the competitive advantage can be attained. The above mentioned vision statements will help the company to regain its customers (Clarke, 2017). Moreover, the new operating system will also help the company to enhance its profit rates as well.  

Mission- The mission statement of the firm is to cut down the prices of its services so that the customers can be attracted in an effective way. The company will get various types of benefits by developing the aforementioned statement as its new mission. In addition, the new mission statement is also to get more subscribers on board (visionnz, 2019). Furthermore, the management also promises to use strategic development plans in order to compete with the internet television services. 

2. Purpose statement for Sky TV Ltd

The purpose statement for the Sky TV Ltd is to direct its operations in such a manner by which the customers can be satisfied. The subscription prices must be lowered in an appropriate manner so that every people in the country can use the Sky Network in an effective way. Moreover, the customer satisfaction will help the company to gain a competitive position in its operating market (strategymanage.com, 2015).  

Key difference between purpose and mission statement

The purpose statement of the company has been developed in such a manner by which it can highlight all the ongoing activities for achieving a competitive advantage. In addition, the purpose statement of Sky TV also highlights the collaboration strategies that will assist the firm with providing new administrations to the clients (strategicmanagementinsight, 2014). Then again, the statement of purpose of the organization primarily features the systems that be utilized for accomplishing an upper hand. In a similar setting, the statement of purpose of the organization is likewise to give good quality of services to the customers by lowering the prices of subscription packages. 

 

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3. Three core values of the organisation

Integrity- The management of the company Sky Network must know about their strategies and policies that they have applied in order to gain a competitive position (simplicable, 2018). In addition, the integrity strategy will also help the management of the firm to implement proper strategies so that the customers can be satisfied more easily.  

Innovation- The innovation strategy can also be used by the management of the company in order to bring out new technologies within their services. In the same context, the innovation of firm will also help the customers to get some new broadcasting services. 

Respect- It is significant for the business administrators of the organization Sky Network to treat all the employees with proper respect (skytv, 2018). By providing respect to the employees, they will be able to develop their services in a prominent manner. 

4. Developing a set of objectives

The management of Sky Network Ltd must try to develop the following strategies for formulating a new strategy for the firm.

Lowering the prices of the subscription packages

Providing sports packages to the customers at low rate

Signing the English Premier League rights

Satisfying the loyal customers with high quality of services

The above mentioned strategies must be carried out by the management of Sky Network Ltd in an appropriate manner so that the firm can gain a strong financial position (stuff, 2018). In addition, the strategies must be formulated in such a manner by which the profit rate can be gained by the company. On the other hand, the company must try to reduce the cost of its subscription packages by which the customers can easily buy it (strategymanage.com, 2015). Furthermore, the English Premier League can create a huge opportunities for the company in order to attract more subscribers. 

5. Key internal and external stakeholders

Internal stakeholders

The internal stakeholders of the Sky Network Ltd mainly include the employees, management and shareholders. The role of the aforementioned stakeholders is to develop generic strategy by which the objectives can be accomplished (Desai, 2019). Moreover, the strategies must be formulated by the internal stakeholders in such a manner by which the services can be enjoyed by the customers. 

External stakeholders 

The external stakeholders of the organisation are the customers, suppliers and investors. The role of external stakeholders is to overview the situation of the firm and helps the firm by providing financial support (strategymanage.com, 2015). The role of customers are to buy the best services that are being provided by Sky TV and the role of investors are to help the company through financial support by which the objectives can be achieved in an effective way. 

Communication strategy to engage with the stakeholders

The verbal communication strategy will be suitable for the management of the firm Sky Network in order to engage with the key stakeholders. By using the verbal communication method, the company will be able to share the issues with the stakeholders for seeking potential ideas. 

Section 2

1. Netflix’s generic strategy

The company Netflix has used the cost leadership strategy as its generic strategy. The cost leadership strategy has successfully helped the firm to provide unique content to the customers at low price. 

2. Current strategy zone of Netflix and Sky TV

 

Figure: Bowman Strategy clock 

Source: (Bhasin, 2019)

Netflix- By dissecting the strategy clock, it tends to be said that the present methodology zone of Netflix falls in the position 5 which is Differentiation. It has been evident that the companies which are using the differentiation strategy mainly try to provide high quality of services at an average price to the customers (simplicable, 2018). In addition, the differentiation strategy also allows a company to provide reliable brands within the market for retaining maximum number of customers. In the same way, the company Netflix has provided reliable internet television services to the customers at an average price which has further helped the firm to attain a competitive advantage. 

Sky TV- The present technique zone of the organization Sky TV is in the position 8 which is loss of piece of the overall industry. In the current situation, the company has faced a huge amount of loss in its business process as the firm has provided high price of Television network services to the customers. This has resulted into a more than 45,000 loss of satellite customers (strategicmanagementinsight, 2014). Moreover, the firm has also faced loss in its market share due to the high subscription price.  

3. Comparing and contrasting the strategies of both Netflix and Sky TV

Strategies of Netflix

The company Netflix has used the cost leadership strategy and technological strategy in order to develop its business process. 

Cost leadership strategy- The cost leadership strategy has been used by the firm in order to provide quality content to the subscribers at an average price (Clarke, 2017). This strategy has helped the company to gain maximum number of subscribers within a short period of time. Moreover, the cost leadership strategy will further help the company to cut down its content price so that the subscribers can enjoy the streaming channels of Netflix in an effective way. 

Technological strategy- A high rate of technology has been used by the company Netflix in order to develop its online platform. Moreover, the big data and cloud computing systems have also been used by the firm in order to store the information of the customers (Mežinska, 2013). This has also helped the customers to use the Netflix website as well as its mobile application in a prominent manner. 

Strategies of Sky TV

High subscription packages- The management of the company decided to increase the price of its subscription packages by which the profit rate can be maintained. However, this has resulted into a huge downfall in its market share. The company has also faced a huge loss in its customers as maximum number of customers in New Zealand has changed the Sky TV pack into the internet television services (Clarke, 2017). For mitigating this issue, the company must try to use a new operating system which will provide a Netflix like interface to the customers. This will help the firm to regain its competitive advantage. 

Increasing the price of some plans- This strategy has also not worked for the firm as the increased price of some plans have affected the subscription loss for the company (skytv, 2018). In order to mitigate the issue, the company Sky TV can use the cost differentiation strategy in order to provide high quality of content to the customers at an average price thereby helping the firm to attain a sustainable position in New Zealand.  

References

Bhasin, H. (2019, April 17). What is Bowman’s Strategy Clock? Retrieved July 27, 2019 from www.marketing91.com: https://www.marketing91.com/what-is-bowmans-strategy-clock/

Channon, D. F. (2016). Multinational strategic planning. From books.google.co.in: https://books.google.co.in/books?hl=en&lr=&id=ZNGuCwAAQBAJ&oi=fnd&pg=PR17&dq=strategic+development+of+an+organisation&ots=8JqdHrvzls&sig=ZQGg7rhxLIPTTkEA-nkes7XWEKA#v=onepage&q=strategic%20development%20of%20an%20organisation&f=false

Clarke, S. (2017). Social Work as Community Development. From www.taylorfrancis.com: https://content.taylorfrancis.com/books/download?dac=C2017-0-57778-X&isbn=9781351749725&format=googlePreviewPdf

Desai, C. (2019). Strategy and Strategic Management. From www.emerald.com: https://www.emerald.com/insight/content/doi/10.1108/978-1-78769-203-920191005/full/html

Echchakoui, S. (2018). An analytical model that links customer-perceived value and competitive strategies. From link.springer.com: https://link.springer.com/article/10.1057/s41270-018-0043-9

Haselwanter, S. M. (2016). Strategic Planning in Micro Businesses. From www.researchgate.net: https://www.researchgate.net/profile/Birgit_Muskat/publication/320741276_Strategic_Planning_in_Micro_Businesses_Adapting_the_Strategic_Clock_for_Micro_Firms/links/59f8fd60aca272607e2f66e4/Strategic-Planning-in-Micro-Businesses-Adapting-the-Strategic-Clock

Mežinska, I. L. (2013). Integrated management systems towards sustainable and socially responsible organisation. From www.tandfonline.com: https://www.tandfonline.com/doi/abs/10.1080/14783363.2013.835899

Ogiela, L. (2015). Advanced techniques for knowledge management and access to strategic information. From www.sciencedirect.com: https://www.sciencedirect.com/science/article/pii/S0268401214001200

simplicable. (2018, April 30). 20 Examples of Change Drivers. Retrieved July 27, 2019 from simplicable.com: https://simplicable.com/new/change-drivers

skygroup. (2019). Sky. From www.skygroup.sky: https://www.skygroup.sky/corporate/bigger-picture

skytv. (2018). Business Overview. From www.skytv.co.nz: https://www.skytv.co.nz/Portals/0/Data/files/Miscellaneous/AR-04-3.pdf

strategicmanagementinsight. (2014, october 20). IFE & EFE Matrices. Retrieved July 27, 2019 from www.strategicmanagementinsight.com: https://www.strategicmanagementinsight.com/tools/ife-efe-matrix.html

strategymanage.com. (2015). Strategic Planning Basics. From strategymanage.com: https://strategymanage.com/resources/strategic-planning-basics/

stuff. (2018, April 06). Sky announces new strategy to keep up with changing entertainment trends. Retrieved July 27, 2019 from www.stuff.co.nz: https://www.stuff.co.nz/entertainment/tv-radio/102904029/sky-announces-new-strategy-to-keep-up-with-changing-entertainment-trends

Veselovsky, M. Y. (2015). The strategy of a region development under the conditions of new actual economic. From www.mcser.org: https://www.mcser.org/journal/index.php/mjss/article/view/7647

visionnz. (2019). smart audio visual. From www.visionnz.co.nz: https://www.visionnz.co.nz/home-entertainment-and-technologies/digital-tv-sky

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