Satellite Television Essay Example

competitor strategies. It is crucial to continually anticipate rival reactions, projected modifications, and regularly re-evaluate the scenario to determine the best course of action.

BBS could have identified News Corp. as a potential competitor before Rupert Murdoch's announcement about the launch of Sky TV. One way to do this would be to consider Sky's interest in British television and the successful track record of News Corporation in the US satellite industry. News Corp. had already transmitted TV programs to Western Europe with a low-powered satellite and had a presence in the UK through newspapers, which could have given Sky the advantage of economies of scope.

The economies of scope are magnified by the fact that News Corporation possesses 20th Century Fox Studios, which acquired a 69% stake in SAT and rebranded it as Sky Channel, indicating a possible rival for BBS. Furthermore, the aggressive and high-stakes nature of Murderous personality, who competed against BBS for the British DB's franchise and lost, suggests he will persist despite setbacks.

Morocco has an interest in becoming the leading player for advertising revenue in the UK, as it is one of the world's wealthier nations. News Corporation, a global company, poses a significant threat as a clear rival, and BBS should acknowledge their intentions or the potential threat to their credibility in competition.

It was necessary for BBS to identify potential competitors in 1990. Particularly, they should have paid attention to News Corporation, which had achieved success in the U.S. satellite TV industry, had experience in the European market, and already had a foothold in the U.K. through ownership of newspapers.

Instead of spending 900 million on

investments and advertising, BBS should have focused on ensuring that they had the necessary equipment to sell by investing in or cooperating with their equipment supplier. They should have also prioritized the faster development of the ITT chip to meet the expected launch date. Although the merger with Bosky appeared to be a 50-50 split, BBS deserved more than 50% share (at least 60%) and greater control over the company due to their significant investment and advertising spending. Furthermore, considering their GAP loss of over 800 million, BBS should have gained over half of direct control of the company.