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Canadian Broadcasting Corporation


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An Group project of Strategic Management Presentation on CBC

An Group project of Strategic Management Presentation on CBC

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  • 1. Canadian Broadcasting Corporation
    Leanne King
    Lloyde Bent
    Sarah Klokkou
    Ryan Bounsall
  • 2. Problem Statement
    Competing for market share
    Declining public support
    Increase in American programming
    Underfunded by government appropriations
    Increased dependence on advertising
  • 3. SWOT Analysis
    Government Subsidization
    Hockey Night in Canada
    Unstable government funding
    Mandated programming restrictions
    Dependence on advertising
  • 4. SWOT Analysis
    Online advertising
    Programming development
    Potential funding cuts
    Loss of market share to privately owned competitors
  • 5. External Environment
    Demographic Segment:
    The Canadian population is aging.
    Immigration is making the Canadian population more ethnically diverse.
    80% of Canadian population lives in urban areas.
    Sociocultural Segment:
    Canadians are expecting relevant content that connects them to their regional communities, and to their own personal values and interests.
  • 6. External Environment
    Technological Segment:
    New technologies create challenges for the CBC in terms of producing and distributing content.
    New technologies give Canadians more flexibility in viewing content.
    Economic Segment:
    Consumers continued to adopt emerging technologies during the recession.
    The recent economic downturn lead to a significant decrease in advertising revenues for the CBC.
  • 7. External Environment
    Political Segment:
    The CBC is funded by four different sources:
    Political appropriations
    Advertising revenues
    Specialty service revenues
    Self-generated revenues
    Global Segment:
    Global factors include the digital revolution, and globalization of the economic and communication sector.
    Increased global competition has lead to audience fragmentation.
  • 8. Five Forces
    Threat of New Entrants
    High barrier to entry requiring capital
    Regulated by Canadian Radio-Television Telecommunication Commission
    Bargaining Power of Suppliers
    Supplier of CBC’s premium programming have power to influence
    The market of the supplier’s programming is limited
  • 9. Five Forces
    Threat of Substitutes
    The alternatives to CBC are privately owned companies that air American programming
    Bargaining Power of Buyers
    Viewers tend to watch more American content than Canadian
    CBC needs viewers more than viewers need CBC
    Intensity of Rivalry
    Competitors have the capital to outbid CBC for programming
  • 10. Internal Analysis
    CBC had a net loss $58 million
    Decrease in advertising revenue
    Decrease in government appropriation
    Not able to allocate capital to cover programming costs
    Key business units are relied upon to generate capital to cover programming costs
    Disposition of key assets to generate capital but creates a loss of future revenue
  • 11. Strategic Objectives
    English Service Objectives
    Commitment to providing quality Canadian programming
    Strengthening ties with communities and regions across Canada
    Provide programming content that Canadians can access in different ways
    Increase audience share of Radio 1, Radio 2 and CBC television
  • 12. Strategic Objective
    French Service Objectives
    Reaffirm their position as leader in providing and creating quality content to French speaking world
    Provide content that can be integrated in different ways
    Increase regional presence for French audiences
    Integrating a model for their news operations to deal with current technologies
  • 13. Key Strategies
    Moving forward
    Expanded regional programming provides more in-depth coverage
    Expanding cross platforms to integrate CBC content
    Re-launch of CBC News Network in 2009 and provide global coverage for news
    Investing in Canadian Content ,and developing and owning their own talent