Strategic and Financial Analysis of V and Y Productions Limited
INTRODUCTION
V and Y Productions Limited (VYP), established in October 2004, is an independent TV production company based in the UK that makes programmes for a variety of TV broadcast organisations. It is founded by Steve Voddil and John Young, who were programme directors worked in TV broadcast companies. VYP is not listed on either a main stock exchange or the alternative investment market. It has a market share of 1.4% and generated total revenue of £28.6 million in YA 2011, almost 39% growth in total revenues from the previous year.
STRATEGIC AND FINANCIAL ANALYSIS
Company Analysis
VYP produces 4 programme genres, including documentaries, drama series, scripted comedy programmes and general entertainment programmes. It has won several TV awards in the past few years. VYP’s revenue comes from the commission fee paid by the TV broadcast companies and international sales of programmes. VYP currently employs 60 people directly and outsources much of the routine TV production work to other small specialised companies.
SWOT
Porter’s Five Forces
Competitive Rivalry within Industry: High
The industry refers to third party content providers or independent TV production companies. This industry is characterized by monopolistic competition where there is a large number of firms producing similar products (television shows) but are not perfectly substitutable due to differentiation between the different ideas and contents created.
Bargaining power of suppliers: Medium
Suppliers include artists, actors, presenters, outsourcing companies and freelance individuals involved with the programmes. While basic videoing and editing crew may be easily sourced, when it comes to the engagement of famous actors or the expertise of freelance individuals or small specialised companies in programme-making, the bargaining power of these suppliers is relatively higher.
Bargaining power of customers: High
Customers refer to TV broadcast organisations like BBC,
V and Y Productions Limited (VYP), established in October 2004, is an independent TV production company based in the UK that makes programmes for a variety of TV broadcast organisations. It is founded by Steve Voddil and John Young, who were programme directors worked in TV broadcast companies. VYP is not listed on either a main stock exchange or the alternative investment market. It has a market share of 1.4% and generated total revenue of £28.6 million in YA 2011, almost 39% growth in total revenues from the previous year.
STRATEGIC AND FINANCIAL ANALYSIS
Company Analysis
VYP produces 4 programme genres, including documentaries, drama series, scripted comedy programmes and general entertainment programmes. It has won several TV awards in the past few years. VYP’s revenue comes from the commission fee paid by the TV broadcast companies and international sales of programmes. VYP currently employs 60 people directly and outsources much of the routine TV production work to other small specialised companies.
SWOT
Porter’s Five Forces
Competitive Rivalry within Industry: High
The industry refers to third party content providers or independent TV production companies. This industry is characterized by monopolistic competition where there is a large number of firms producing similar products (television shows) but are not perfectly substitutable due to differentiation between the different ideas and contents created.
Bargaining power of suppliers: Medium
Suppliers include artists, actors, presenters, outsourcing companies and freelance individuals involved with the programmes. While basic videoing and editing crew may be easily sourced, when it comes to the engagement of famous actors or the expertise of freelance individuals or small specialised companies in programme-making, the bargaining power of these suppliers is relatively higher.
Bargaining power of customers: High
Customers refer to TV broadcast organisations like BBC,