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1417144 Assignment 2 Essay

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SHR004-3: STRATEGIC MANAGEMENT
ASSIGNMENT 2

VIACOM INC.
(cont.)

Student name: TRANG QUYNH KHANH TRAN
Student ID: 1417144
Lecturer: ELIOT LLOYD
Submission date: 20.03.2015
EXECUTIVE SUMMARY
The aim of the paper is to define and justify the current strategy of Viacom, a leading company in broadcasting industry. Porter’s Generic Strategy is applied to identify the strategy of the chosen firm, which is Differentiation strategy. Through the analysis of the firm’s value proposition which illustrates that Viacom should keep its current strategy, the choice is justified by using SAF criteria (Suitability, Acceptability and Feasibility). The whole analysis is resulted in encouragement to Viacom to keep its strategy. TABLE OF CONTENT

I. Introduction 3
II. Industry trend overview 3
III. Viacom’s current strategic position and value proposition 4 1. Strategic position 4
2. Value proposition 5
IV. Strategy justification 5
1. Suitability 5
2. Acceptability 7
3. Feasibility 7
V. Conclusion 8
References 9

I. Introduction
This paper aims to analyze and justify the current strategy of Viacom, an American global media company providing entertainment content and media related services, using the SAF criteria to determine whether the company should keep or change strategy in case of the current trend happening in the industry. II. Industry trend overview

‘Cord-cutting is on the rise. Cable is not.’
Nowadays, with more people using digital devices such as smartphones, tablets, laptops and PCs and the continuous improving of technology, especially the Internet, consumers’ watching habit has changed. Watching shows online or downloading programs from torrent sites as well as online-platform media companies’ sites are popular among consumers. For example, Netflix and Hulu are providers of on-demand Internet streaming media by using both new and older contents. This, to some extent, affects the current competition scenario between players in the market. If in the past consumers had to pay quite a large amount of money for cable package, the scenario where people only have to spend a little or nothing for channels they actually need is slowly approaching. In the changing media landscape which is under threat from ‘cord-cutters’ – people who opted out of a cable TV subscription package and watch their TV via the internet, HBO proposed to start selling a web-streaming version of its services in US in 2015 (The Guardian, 2014). This means no more expensive TV bills for th...

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