0
1
Haris Suhendra
Breakout Strategy To win The Competition
In 2011/2012
Table of Contents
 Overview
 External Analysis
 Internal Analysis
 Review on VIVA’s Business Strategy:
 Propose Impro...
Overview
3
VIVA’s Climbing a Growth Staircase
4
VIVA’s Life
impressive improvement in financial performance in-line with the ever so fast
growing of the Indonesian econom...
External Analysis
6
Macro-environment
The power to control the media, seems to have
become the power to also control policy and media
law, hen...
8
9
Industry trends
10
11
12
Industry trends and developments.
• The average growth rate per year (CAGR) net
income of these ads will grow 4.4% up to
2...
Porter's Five Forces in National Media Industry in
2011/2012
Threat of entry is LOW
the bargaining power of
supplier is LO...
15
RCTI
16%
MNC TV
12%
Global TV
8%
SCTV
15%
Indosiar Visual Mandiri
10%
Trans TV
14%
Trans 7
10%
ANTV
7%
TV One
5%
Metro ...
Profitable growth strategic movements analysis: Strategies of key
industry players
16
-1,000,000.00
0.00
1,000,000.00
2,00...
Profitable growth strategic movements analysis: Strategies of key industry
players
New focus: Strategy
• increase the shar...
Profitable growth strategic movements analysis:
Strategies of key industry players (2)
18
Revenue : Rp. 3,466 .5
billion, ...
Internal Analysis
19
Resources
Tangible asset Intangible asset
Financial VIVA in Indonesia stock exchange (IDX) and
grab the funds (gross) of R...
• Engaged in the broadcast media, online media, a
developer of technology that will be developed
up to the telecommunicati...
Core Competence
• Delivering content including news, sports, and
lifestyle through the convergence of television
services,...
Content Creation
Content
Packaging
Content
Distribution
User
Interface
End user
VIVA’s Value Chain Analysis
23
86 % In-hou...
Analysis/Review on VIVA’s Business
Strategy
24
VIVA’s SWOT Matrix analysis
25
Strength
 leading media convergence in
Indonesia to focus on content
provision news, sport...
VIVA's Generic Strategies
26
Porter's Generic Strategies (source: Porter, 1985, p.12)
COMPETITIVE ADVANTAGE
COMPETITIVE
SC...
• Being media company option advertisers through good relations and
communication more intensive cooperation and more comp...
VIVA’s Current Business model Canvass
28
Key Partners
Advertiser
Ads Agency -
Foreign News Agency (APTN,
SNTV, VOA)
IT Ven...
Review of VIVA’s past/current competitive strateg(ies)
29
Innovation Partnership
Leadership &
Culture
Quality &
Coverage
T...
Propose Improvement
30
VIVA’s New Business Model Canvass
31
Key Partners
External :
Advertiser
Ads Agency -
Foreign News Agency (APTN,
SNTV, VOA)...
Arena
VehicleStaging Economi
c Logic
Differentiators
Arena
• Convergence Media
• Target Professional , Executive, Woman
• ...
Implementation Stages
33
Implementation (2)
Improve its operational and financial performance :
1. Improved profit and margin by continuing to focu...
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Corporate Business Strategy - Breakout Strategy for VIVA

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Materi ini dapat dijadikan acuan dalam pembuatan Corporate Business Strategy/ Strategi Bisnis Korporasi. Simak contoh pemaparannya dalam kasus VIVA.

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Transcript of "Corporate Business Strategy - Breakout Strategy for VIVA "

  1. 1. 1 Haris Suhendra Breakout Strategy To win The Competition In 2011/2012
  2. 2. Table of Contents  Overview  External Analysis  Internal Analysis  Review on VIVA’s Business Strategy:  Propose Improvement 2
  3. 3. Overview 3
  4. 4. VIVA’s Climbing a Growth Staircase 4
  5. 5. VIVA’s Life impressive improvement in financial performance in-line with the ever so fast growing of the Indonesian economy. 5 Source : VIVA’s Annual Report 2011
  6. 6. External Analysis 6
  7. 7. Macro-environment The power to control the media, seems to have become the power to also control policy and media law, hence confirming the regulation is more oriented towards group interests rather than public interests. Indonesia's economic growth is expected to continue to grow by 6-7% per year in the 5 (five) years. social networking/ social media has opened the space without limits for people to communicate. Geographic Conditions are mutually separated island nation caused the construction of physical infrastructure costs are expensive. Development of Media Digitization has given new challenges One of the regulations that have changed the face of media in Indonesia is the UU No. 32/2002 which brought a wave of new freedoms and democratic spirit of the media.
  8. 8. 8
  9. 9. 9
  10. 10. Industry trends 10
  11. 11. 11
  12. 12. 12
  13. 13. Industry trends and developments. • The average growth rate per year (CAGR) net income of these ads will grow 4.4% up to 2016, reaching US$ 2.5 billion, equivalent with 44.0% market share. • In 2011, the amount of net advertising media expenditure : 42.7%. • Free-to-air (“FTA”) television reach more or less 35 million families or 56% of families in Indonesia and is forecast to rise by 60% by 2016. 13 Source : MPA showed that in 2011
  14. 14. Porter's Five Forces in National Media Industry in 2011/2012 Threat of entry is LOW the bargaining power of supplier is LOW The bargaining power of buyer in the industry is High The threat of substitute product in the industry is medium The intensity of competition is high barriers to entry : capital requirements, economies of scale, and government regulations. in-house production, one of strategy to reduce the cost of production. The development of Mobile technology Development of the film & tourism industry 14 Media agency holding the funds accumulated large amounts of ad spending. MNC Group, Kompas Gramedia, EMTEK Group, VISI Media Asia, Jawa Pos group, Mahaka Media, CT Group, BeritaSatu Media Holdings, the Media Group, MRA Media, Femina Group and the Tempo Media.
  15. 15. 15 RCTI 16% MNC TV 12% Global TV 8% SCTV 15% Indosiar Visual Mandiri 10% Trans TV 14% Trans 7 10% ANTV 7% TV One 5% Metro TV 3% Market Share MNC 36% EMTEK 25% CT 24% VIVA 12% Key Industry Players Market Share FTA (Free-to-Air in Indonesia : 2012). Source : MPA analysis (2011)
  16. 16. Profitable growth strategic movements analysis: Strategies of key industry players 16 -1,000,000.00 0.00 1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 5,000,000.00 6,000,000.00 VIVA MNC EMTEK VIVA MNC EMTEK VIVA MNC EMTEK VIVA MNC EMTEK 2008 2009 2010 2011 TOTAL REVENUES NET INCOME
  17. 17. Profitable growth strategic movements analysis: Strategies of key industry players New focus: Strategy • increase the share of viewers • Developed a network of local television • Optimize revenues and manage expenses to ensure adequate profit and margin. • Continue to creating synergy inter-unit business. 17 EBITDA margin grew from 30% in 2010 to 33%in 2011.
  18. 18. Profitable growth strategic movements analysis: Strategies of key industry players (2) 18 Revenue : Rp. 3,466 .5 billion, increased by 23.3% of the revenue of Rp. 2864.5 billion in 2010. New Focus : • The first is the success we acquired a controlling stake in Indosiar & digital pay-TV (NexMedia). • Focus on cost control strategy that carefully and increased cash flow. EMTEK Group
  19. 19. Internal Analysis 19
  20. 20. Resources Tangible asset Intangible asset Financial VIVA in Indonesia stock exchange (IDX) and grab the funds (gross) of Rp. 500. billion Reputations & Recognition Good Brand Positioning : TV One in a short time has become a news station number 1 in Indonesia with news coverage Physical 31 transmission stations so as to reach 170 cities and districts in Indonesia with 143 million inhabitants. 3G facilities Satellite News Gathering (SNG) Human Capital Number of Employee : : 2,690 professionals • 2,205 permanent employees • 485 outsourced employees. There are 2,121 male workers and 569 female workers. “Bakrie Learning Center” & “KampusOne” Organization Bakrie Group‘s 20
  21. 21. • Engaged in the broadcast media, online media, a developer of technology that will be developed up to the telecommunications infrastructure. • Integration and strategic coordination • Increased in-house production from 53% (2008) to 86% at the end of 2011. • In-house content content • VIVA can produce and broadcast programs directly (live) and record (taping). • on the air for 24 (twenty four) hours per day 21 Capabilities
  22. 22. Core Competence • Delivering content including news, sports, and lifestyle through the convergence of television services, the internet, and mobile phones. • VIVA owns and manages two FTA TV stations with national coverage: ANTV, tvOne and and the leading online news portal in Indonesia- VIVAnews.com. 22
  23. 23. Content Creation Content Packaging Content Distribution User Interface End user VIVA’s Value Chain Analysis 23 86 % In-house production Outsource Broadcast TV Cable Network Broadcast TV Station Cable TV Pay TV Internet TV Laptop/ PC Mobile Device Website Viewers/ Consumer News programs, current affairs, talk shows, documentaries and sports selectively purchase licenses from overseas for a credible news content and can attract the attention of viewers, such as BBC Worldwide Limited, Associated Press Television News Limited, Reuters and others. 31 transmission stations so as to reach 170 cities and districts in Indonesia www.tvone.co.id www.an.tv Vivanews.com 143 million Viewer (2011). 24 hours Local Contributors (news bureau) : Surabaya, Medan and Makassar Foreign Contributor (news agencies) : APTN, SNTV, Reuters , VOA, and others. Outside broadcasting van ("OBvan"). 3G facility tvOne Satellite News Gathering (SNG) that uses the Global System for Mobile Communications (GSM) to direct the news coverage (live). TV One renting satellite with 12MHz bandwidth in satellite owned by Indosat.
  24. 24. Analysis/Review on VIVA’s Business Strategy 24
  25. 25. VIVA’s SWOT Matrix analysis 25 Strength  leading media convergence in Indonesia to focus on content provision news, sports and lifestyle  Free-to-Air (FTA) television stations, the internet and cell phones. Weakness • Product service similar to the first competitor to dominate the market. • Only TV and Online Media • Low quality Opportunities Net income of these ads will grow 4.4% up to 2016, reaching US $ 2.5 billion, equivalent with 44.0% market share. - Free-to-Air television reach more or less 35 million families or 56% of families in Indonesia and is forecast to rise by 60% by 2016. Strength – Opportunity • Increasing market share. • Increase Brand Equity. Weakness – Opportunity Creating innovative event programs. Improving the quality of reporting. Threats • Convergence and digitizing media • The growing number of local TV area. • Low interest of society to news programs. • Regulations are still in favor of the media conglomerate. Strength – Threats  Pursuing a strategy of digitization of media  Giving more benefit to advertisers Weakness – Treats  The involvement of the community in presenting the news
  26. 26. VIVA's Generic Strategies 26 Porter's Generic Strategies (source: Porter, 1985, p.12) COMPETITIVE ADVANTAGE COMPETITIVE SCOPE Lower Cost Differentiation Broad Target Narrow Target 1. Cost Leadership 2. Differentiation 3A. Cost Focus 3B. Differentiation Focus VIVA concentrate in a Focus Strategy : • Focus on delivering content including news, sports, and lifestyle through the convergence of television services, the internet, and mobile phones. • VIVA owns and manages two FTA TV stations with national coverage: ANTV, tvOne and and the leading online news portal in Indonesia-VIVAnews.com.
  27. 27. • Being media company option advertisers through good relations and communication more intensive cooperation and more comprehensive. • Constantly present content program line with trends interest viewers, and lifestyle obviously with the best quality broadcast. • Always present accompanying viewers in every platform and canals • Build a two-way dialogue with viewers through the medium of the internet and social networks. • Forming communities most unique most modern and most loyal in Indonesia. • Continue to maximize preeminence to hold utilizing the momentum. 27 Value Proposition
  28. 28. VIVA’s Current Business model Canvass 28 Key Partners Advertiser Ads Agency - Foreign News Agency (APTN, SNTV, VOA) IT Vendor (JAVA & Linux) Broadcasting infrastructure Vendor Social Media/ Social Network Universities Telecommunication Provider (TELKOM, Indosat) Key Activities Program Design Program Developing In-House Production Marketing Selling R&D Implementation of Good Corporate Governance (GCG) CSR Technology Development ((3G Satelite) Learning Center Value Proposition Focus Provision content news, sport and lifestyle Providing a Good Program Providing a Good Quality of Program Providing Unique & Interesting Program Providing Online Portal News Customer Relation Event Program Customer Segment SES ABCD (Urban & Sub Urban) Key Resources Creative Team IT Expert Employee Journalist R&D Team Marketers Channel Free-to-Air Television (FTA) – National (ANTV & tvOne Online Media (Website) Portal Online Media (Portal VIvanews.com) Advertisement Marketing Kit Cost Operational Cost Program Development Cost Marketing Cost General & Administrative Cost Research & Development ICT Cost People Development Cost Revenue Stream Advertising Revenue Sponsorship Investor Partnership In-House Production
  29. 29. Review of VIVA’s past/current competitive strateg(ies) 29 Innovation Partnership Leadership & Culture Quality & Coverage To improve efficiency People Profit Focus on news. Sport and lifestyle programs Some excellent & Unique program Purchase licenses from overseas : BBC Worldwide Limited, Associated Press Television News Limited, Reuters and others Local Contributors : Surabaya, Medan and Makassar Foreign correspondence (news agencies) : APTN, SNTV, Reuters , VOA, and others. Commitment to the implementation of Good Corporate Governance (GCG) Building 37 transmitters throughout Indonesia, Technology Development : broadcasting equipment outside broadcasting van ("OBvan") & 3G facility tvOne Satellite News Gathering (SNG) that uses the Global System for Mobile Communication s (GSM) to direct the news coverage (live). Consolidating & Synergy all BU’s increased the number of in- house production of 53% in 2008 to 86% at the end of the year 2011. the acquisition of non-news content and news from various production houses and distributors of leading through a rigorous selection process. People Deleopment with “Bakrie Learning Center” dan “KampusOne” Conducting the process of expanding access to broadcast and production process is commercialized
  30. 30. Propose Improvement 30
  31. 31. VIVA’s New Business Model Canvass 31 Key Partners External : Advertiser Ads Agency - Foreign News Agency (APTN, SNTV, VOA) IT Vendor (JAVA & Linux) Broadcasting infrastructure Vendor Social Media/ Social Network Universities Telecommunication Provider (TELKOM, Indosat) Internal : Editorial Dept HR Dept IT Dept GAL Dept Market Dept Finance Dept Other BU’s Key Activities Program Design Program Developing In-House Production Marketing Selling R&D Implementation of Good Corporate Governance (GCG) CSR Technology Development (3G Satelite) Learning Center Value Proposition Focus Provision content news, sport and lifestyle Providing a Good Program Providing a Good Quality of Program Providing Unique & Interesting Program Providing Online Portal News Multi platforms Create business information program Customer Relation Event Program Community Program Customer Segment SES ABCD (Urban & Sub Urban) Key Resources Creative Team IT Expert Employee Journalist R&D Team Marketers Digital Media Expert Publisher Expert Channel Free-to-Air Television (FTA) – National (ANTV & tvOne Free-to-Air Television (FTA) – Local TV Print Media Pay TV Radio Station Digital Media Online Media (Website) Portal Online Media (Portal VIvanews.com) Advertisement Marketing Kit Mobile Device Cost Operational Cost; Program Development Cost; Marketing Cost; General & Administrative Cost Research & Development; ICT Cost People Development Cost Revenue Stream Advertising Revenue; Sponsorship; Investor; Partnership In-House Production Revenue Content Provider Revenue
  32. 32. Arena VehicleStaging Economi c Logic Differentiators Arena • Convergence Media • Target Professional , Executive, Woman • Area : Jakarta and Outside Jakarta Vehicle focus on content provision news, sports and lifestyle multiple platforms, Including Free- to-Air (FTA) television stations, the internet and cell phones. Collaboration with Key Agency Partners 3G Satellite Technology Staging Foundation Stage Innovation year Growing Stage Go Global Winning Stage Media of Choice Economic Logic • Increasing revenue from advertising • sponsorship • Increasing Brand Equity • Recognition, Brand Image, trust Differentiator • Focus on News & Sport • 24 hour off-air • Provide the variety of programs Strategic Movement : VIVA’s Diamond Strategic
  33. 33. Implementation Stages 33
  34. 34. Implementation (2) Improve its operational and financial performance : 1. Improved profit and margin by continuing to focus on producing a quality program of in-house. 2. Optimization of operational activities and create synergies between television networks and online news portal. 3. Improved and broadened the scope of the television is not paid on an ongoing basis to increase the share of viewers and increase revenue from advertisers. 4. Develop content distribution through the internet platform. 5. Maintains and strengthens the company's position as the market leader in news coverage 34
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