Swot Analysis Of Sv Plc

ITV plc is a media company operates in the UK and internationally whose segment contents of Broadcast & Online in the UK and global contents ITV studios. It is one of the UK’s leading and fastest growing commercial channel and integrated producer broadcaster creates, owns and distributes high-quality contents in multiple platforms. It consists of ITV2 and ITV3 the two largest digital channels in the UK from where most of the revenue is generated. During 2014 ITV has launched the high definition version of the digital channel known as ITV Encore the first pay only channel. It is estimated that ITV has the largest share of UK television, advertising market.

Porter’s five forces analysis was developed by Michael E. Porter of Harvard University.
Threats of the new entry in the industry depend on the height of entry barriers. As in the media industry required a large amount of capital investment and where the competitors are in the good position in the market the entry barriers is very high. ITV and BBC hold the strong position in media industry so the threat is minimized. Brand Identification also creates the barrier by forcing entrants to spend the huge amount marketing and getting the customer loyalty.
At present ITV and BBC hold the strong customer loyalty. Access to distribution channels the new entrants should have the secure distribution channel of its product or service the new media entrants programs and content may not like by the viewer which creates difficulties for the new company to existing in the market. The rapid growth of online streaming BT and Netflix might be the threat of new entrants in the market for the online pay television.

1.5 Competitive rivalry within the
Competition within the industry forces the companies to lower the price and loose the market share. In UK television industry there is lots of competition. The main rival for the ITV is BBC which holds the strong position within the UK. Industry always required the powerful competitive strategy to survive within against the competitors. Both the broadcaster has the popular shows like coronation street, downtown abbey for ITV and East Enders for BBC which are the most-watched soap of the year, Although ITV has lost its contract broadcasting the Champion League, as a result, customer has switched to BBC, but it still has some famous entertainment shows like Britain’s Got Talent and X-Factor which attracts the audience. TV’s another rival is Sky which provides the wide range of services like sports channel, movies channel, and weather for the cast. To be competitive within the market ITV need to spend the huge amount of capital in marketing, new programs hiring the best actors, directors which will increase the cost and lower the profitability. However, it can generate the wide range of audience which will help to increase their profitability.
1.6 Limitation of Porter’s Five Forces
There are several limitation of Porters Five Forces.
 Porter’s Five Force underestimates the influence of a company’s core competencies on its ability to achieve profit.
 The model is applicable to small companies & firm but it is difficulty