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4 - New strategies and structures (Four ways to acquire resources (4.…
4 - New strategies and structures
Successful companies
solidify core competencies
incremental improvements
Disruptive changes, what to do?
Inertia
: inflexibility, the more successful the more likely
Change existing structures
Ambidexterity
: exploration and exploitation
Adjacency
market
products
Relevant resources
strategic relevance
is needed to compete
rare
inimitable
valuable
non-substitutable
Four ways to acquire resources
4. Acquire through mergers; conglomerates
Three contributing factors
technology: increased consolidation opportunity (distribute content)
strategic advantage: mergers allow big companies to dominate value chain
globalisation: transnational media market --> more trade
Conglomerates
Rewards
fragmented audience ask for diverse content
keep government out of production
large companies: innovate and adapt (resources)
Risks
homogenisation of content --> aimed at largest/richest audience that will buy products
profit-driven interest
block small players
illusion of choice
3. Start as a new player focused on relevant resources
Buzzfeed: business model based on user data
new step of data analysis in chain
1: Internally develop
Netflix
2: Set up independent business unit linked to organisation
Daily Mail and Mail Online
allows legacy to more on
Variety of acquiring resources, therefore --> multifaceted ML
struggling legacy players
many digital start-ups
several huge conglomerates
Creativity and innovation burder because experiential good and fickle consumer taste
Creativity
resonates with public (commercial success)
receives critical acclaim (industry success)
original
fits firm's objectives and budget
Innovation
support creativity in
processes
structures
strategies
Finding creativity
Intrinsic
motivation: for its own sake
Extrinsic
motivation: reward from outside
Encourage creativity
autonomy/freedom
resources
encouragement: clear goals
challenge
team composition (diversity)
Advertising market disrupted
Two key reasons
fragmentation of value chain and audiences
hard to find key consumers
dual product market
streaming and digitalisation
inattention to banner ads
skipping ads
Dealing with ad skipping
Native advertising
: advertising that
mirrors
the surrounding
editorial environment
of a webpage
.
Online behavioural advertising
: practice of tailoring ads based on person's online surfing behaviour
Cookies
small amount of data generated by sites, saved by browser
Product placement
: the
insertion of products
into mass media content with the
intention
of
influencing
consumers'
attitude
However, some protection from market pressures necessary