Question 1 - What are the major strategic factors in the decision to relocate the production of Baywatch?
What were the strategic implications of this intended strategy? There were three key strategic factors in the decision to relocate the production of Baywatch.
These are the reasons for the show's need to change: rejuvenation, cost reduction, and improved ratings. Despite its previous success as a top-rated show, it began to decline. In 1998, producers recognized the necessity of making changes in order to win back viewers. Initially, they scoured America for a potential new setting before expanding their search internationally to Europe and Australia. Sydney emerged as a strong candidate due to its surf beaches, cultural offerings, and status as host city for the upcoming Olympic Games. Relocating the show would not only breathe new life into it but also gener
...ate significant media coverage and build anticipation for the new series. The stagnation of storylines had become evident after years at the same location.
Viewers grew uninterested and ratings started to decrease. Along with that, Los Angeles became more costly as the production site. Additionally, the state of California admitted that it could no longer practically offer concessions to the local film industry due to the expense involved. Consequently, producers realized that moving the production to another location could be feasible, leading to reduced costs overall and potentially higher income. The show's producers were also enticed by the low value of the Australian dollar, allowing them to save around 30% on equipment and other expenses.
Additionally, potential locations realized the benefits of having the production relocated to their area, allowing producers to negotiate terms o
the move. The Federal Tourism Minister of Australia was asked for a $2 million payment to cover relocation costs and unforeseen expenses. Other candidates also made similar requests. In the previous year, two episodes were filmed on Avalon Beach and nearby beaches in Sydney, which proved to be a successful choice both financially and in terms of ratings. These pilot episodes demonstrated that relocation, regardless of the country, could be the key to reclaiming the show's once high ratings. The strategy used had several strategic implications.
Despite the effort and negotiations with N. S. W and the Federal Tourism Minister, Baywatch's plans to move to Avalon as its new location did not pan out because of strong local outrage and protest. Consequently, the leverage gained by involving N. S. W and the Federal Tourism Minister was lost.
S. W,QLD and Hawaii were in direct competition as potential locations for Baywatch. After a lengthy negotiation process, both N. S.W and QLD withdrew from consideration, leaving Hawaii as the chosen location. However, filming in Hawaii did not bring about the desired changes and instead created more financial problems. Additionally, David Hasselhoff, the show's main actor, quitting Baywatch added to the challenges faced by the producers.
We can observe from this Case study that Baywatch Producers tried to exploit nonmarket avenues in an attempt to revamp their show. This led to a variety of responses from potential buyers of the show, who were lacking in information, particularly about the producers' assertions. After two unsuccessful strategies, the producers opted for a hasty approach, which ultimately failed due to inadequate planning and foresight.
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