1. Always Something Good to Come Home To!MBA-440 Strategic Management Group F November 2014

2. Josese TuragavaS95007912Shivandhna RaniS02000886Anil SenewiratneS11095516Taniela MatakibauS83411330Stuart GowS11100919 3. ScopeExecutive TeamFiji TV The CompanyProblem StatementMarket AnalysisInternal AnalysisExternal Macro AnalysisCompetitive AnalysisStrategic OptionsStrategic RecommendationsShort, Medium, Long Term 4. Fiji Television LimitedSPSE: FTV 5. Fiji Television LimitedFiji's main television networkSPSE: FTVFounded 1994, Listed 1996Owns:Fiji One (free to air)Sky Pacific (pay TV)Media Niugini Limited (EM-TV in PNG)Main shareholdersFijian Holdings Limited (shares from Yasana Holdings Ltd)Hari Punja & Sons Limited 6. Problem StatementFiji TV's free-to-air station Fiji One haslost major market share of theiradvertising clients to a new station in theFiji free-to-air television market in 2013-2014 launched by Fiji broadcastingCompany and backed and funded by theFiji Government.How to regain market share and counterattack FBCs strategies is the problem to beaddressed 7. Problem Statement cont.Loss ofMarket Shareof AdsFBC nowmajor playerHow to regainmarket share? 8. Background20 years monopolyWas Govt owned, notnowAlso owns Sky Pacificsatellite pay-TVListed on SPSEFHL major shareholder 9. Fiji Broadcasting Corporation (FBC)Core business -radio broadcasterOwn 6 radiostationslaunched FBC TV -November 2011Now Govt funded$3.5M annually 10. 2014 Market ShareFBC44%Both Fiji ONEand FBC2%MAI TV1%SKY2%Fiji ONE34%Other17% 11. SWOT AnalysisTOWS Matrix 12. TOWS MatrixINTERNALEXTERNALStrengthsInternal1. Satellite TV2. In-house Tech/IT3. SPSEWeaknesses1. Bad Content2. Bad coverage North3. Low Govt SupportOpportunities1. Larger Audience2. Internet/online3. SPSE/CapitalSO3/2 Launch IPTV2/1 Expandaudience/eyeballsWO Get capital for newprograms2/3 Better Coverage inNorthThreats1. Licensing2. FBC Govt Support3. Radio FBCST1/1 Lobby for longerlicence3/2 Package satelliteadvertising with TVWT2/2 Avoid confrontationwith GovtExternal 13. SO Strength/OpportunitiesLaunch IPTVUse tech/IT skillsFirst to MarketExpand audience/eyeballsUse satellitecoverageLeverage capital 14. ST Strengths/ThreatsLobby for longerlicenceMain threat islicencingUse Govt contactsPackage satelliteadvertising with TVExpand offering tonegate radio add-on 15. WO Weakness/OpportunitiesGet capital for newprogramsUtilise SPSE/FHLUpgrade better contentBetter Coverage in NorthUse satelliteGet more viewers 16. WT Weakness/ThreatsAvoid confrontationwith GovtWeak positionUse alternatemethods/approaches 17. Value Chain Analysis 18. Supply Chain ManagementImproveContent ProcurementProgrammingPurchasing PowerExclusivity 19. OperationsImproveNew satelliteWider coverageMore homesMore TVs 20. DistributionImproveGeographic SatelliteCoverageMore ElectricitycoverageMore TV-Top Boxes 21. ServiceImproveIn house productionAdvertiser Support 22. Support ActivitiesR&D Tech HRMInvest inIPTVMobile ApInternet expansionInvest inStaff educationExecutive MBAs 23. Macro- Environmental AnalysisPESTEL Analysis 24. Political FactorsQuite tough for Fiji TV since 2003Political environment quitevolatileMilitary coup in 2006= gagging of the mediaGovernment sold out ALL theirshares to Hari Punja 2012FBC hires brother of the AG asCEO 25. Economic FactorsPost- election & democracy backCommonwealth acceptanceMore positive economic growthProjected GDP growth 3.8%More bilateral agreements with China,India, Australia, New Zealand and EU &USAFijis economy will boom 26. Economic Factors cont.Investors and business aremore confident ininvestingBusinesses will spendmore on ads & promosStandard of living increase= more TVsGood loan interest ratesunder the FHL banner 27. Socio-Cultural FactorsImportant role in channel& programme choice:Demographic factorsLifestyle factorsCulture factorsMore family & educationalprogrammesHigh literacy =parents more involved in kids livesvery particular what kids watch on TV 28. Socio-Cultural Factors cont.Kids more towardsComputersX-BoxinternetOffer different to attractthe kids of todayProper mix ofsportscurrent affairsentertainmenteducational 29. Technological Factors4G mobile coverage of98% of FijiNew satellite moreregional coverageMore and better TVs inhomesMore Sat TV-Top boxesMore tech savvypopulation 30. Environmental FactorsNatural DisastersCyclonesFloodsDamaging :TV stationsRepeatersPower outages 31. Legal FactorsRegulation to sharesports eventsCurrently viewed viaTerrestrial SignalAll covered by lawdomestically 32. Regulatory FactorsNon-Renewal of LicenseOnly 6 monthsrenewal on goingGovt controlledOperations could besuspended if licenseis not renewed 33. Competitive LandscapePorters 5 Forces Analysis 34. Competitive LandscapeDominated by the2 main stations inthe Free to Airtelevision stationmarket place1. Fiji ONE2. FBC 35. Porters 5 Forces 36. Supplier Power - MediumGood relationship withsuppliersBBCTVNZFox channelsSporting Channels(IRB and EPL)Others 37. Supplier Power - MediumChannels sell directExclusively to FijiONEThe contracts areannualCould change atthat review time 38. Supplier Power cont.Loss of key contentLost these exclusiveprograms:EPLIRB 39. Buyer Power - HighTop AdvertisersCourts Fiji LtdVodafone Fiji LtdDigicel Fiji LtdMH SupermarketsFMF BrandsCar Dealers (Asco, Shreedar,Vision Motors, Carpenters)CJ Patel (Colgate-Palmolive)Vinod Patel HardwareTOTALRC Manubhai 40. Threat of Substitute- MediumTop 3 substitutesRadio AdvertisingPrint AdvertisingOnline-Internetadvertising 41. New Entrants - MediumOriginally the threat ofnew entrants was lowProved false by the entryof 2 new competitorsinto the market place inthe last 5 years.There is a real genuinethreat for a newcompany to compete inthis market 42. Competitive Rivalry - HighIntense competitionfrom FBCFBC taken over asthe market shareleader in 2014 at44%Follower a weak MaiTV with only 1%.FBC44%MAI TV1%Fiji ONE34% 43. Anoff s 9 Cell Matrix 44. Ansoff MatrixExisting SimilarNew ProductDevelopmentExistingPenetration North FijiSimilar Upsell Free toSatIntegration Hor. IPTV Mobile AppSimilarIntegration Vert Regional Sat.Conc. Div. Conc. Div.New MarketDevelopmentNew Market Dev Solomons PICSConc. Div. Radio in TongaCongl. Div Mobile App Start AllianceProductsMarkets 45. Strategic MissionFiji TV to regain viewer numbers andmarket share above 60% to attractthe advertising clients back to FijiTV as the PRIME televisionadvertising platform 46. Overall StrategyBroadDifferentiationFirst to MarketIPTVMobile AppBlue OceanNew MarketsNew Products 47. Next 12 months 48. Compelling contentAlways somethinggood to come hometoEnsure content isfresh & newAvoid re-runs wherepossible on Free to airFBC TV re-runs alreadyrun by Fiji TV & SkyPacific 49. Sporting EventsDont rely on SportUse Regional &International reach 50. Next 2 Years 51. Paid Satellite TVAlways have Fiji TVavailable to allsubscribersRegardless if they havepaid theirsubscriptions or notIf they don't pay, don'tcut off Fiji TV... 52. Packaged AdvertisingPackage advertisingon Sky TV and FijiTVFor all viewers to seeCompetition cantdo it! 53. Within 5 years 54. IPTVJoint Venture/StrategicAlliance withDigicelVodafoneFirst to Market IPTV inregionGo Regional all at once! 55. Mobile AppDevelop new APPComplimentaryproduct to IPTVPartnershipalready 56. Electrification of CountrySupport electrificationof country to allowmore TV's to run!Support solar/wind toencouragesustainability 57. Live StreamingNew technologyHigh demand foronline contentExamples:YouTubeNetflixHuluAmazon 58. Strategic planningReviewedannually3 yearscycle iscontinuing 59. Customer RetentionFeedback fromadvertisersFeedback fromviewersIn-housecreative team 60. SatelliteUpgrades tonewer systemsBetter systemsSatellite 61. Tools UsedSWOTTOWS MatrixValue Chain AnalysisPESTEL (R)Porters 5 ForcesAnsoff sMatrixLinear CreativityTechniqueForced Field Analysis 62. ReferencesFiji TV Annual Reports 2008 -2014, Fiji Television Group, June 2014Clarus Research Group. (2014). Fiji Media Survey Report April-May 2014. Suva:Government of Fiji.Fiji Bureau of Statistics. (2007). 2007 Census of Population. Retrieved from FijiBureau of Statistics: http://www.statsfiji.gov.fj/index.php/2007-census-of-populationFiji Government. (2013, November 11). 2013 Fiji National Budget Announcement.Retrieved from Fiji Government Online Portal: http://www.fiji.gov.fj/Media-Center/Speeches/2014-NATIONAL-BUDGET-ANNOUNCEMENT.aspxFiji Government. (2014, May 29). Television (Cross-Carriage of DesignatedEvents) Decree 2014. Retrieved from Fiji Government Online Portal:http://www.fiji.gov.fj/getattachment/133c52f7-9323-4dea-aab7-ae7b8f444bcb/Decree-No-19---Television-(Cross-Carriage-of-Desig.aspxGonelevu, T. (2014, October 30). Personal interview with Tevita Gonelevu FijiTV Chief Executive Officer. (J. Turagava, Interviewer)Whiteside, B. (2014, November 8). RBF confident economy will exceed 3.8percent growth target. Retrieved from Fiji Television Limited:http://fijione.tv/rbf-confident-economy-will-exceed-3-8-percent-growth-target 63. References cont.Fiji Sun and Fiji Times websitesWebsitesFiji TV, FBC and Mai TVVodafoneDigicelMai TV Secures Fiji FIFA Rightshttp://www.tv.com.fj/fifa2014.phpMai TV takes Bundesliga to Fijihttp://www.sportbusiness.com/tv-sports-markets/mai-tv-takes-bundesliga-fijiFBC gets English Premier LeagueOct 07, 2013http://www.fbc.com.fj/fiji/14291/fbc-gets-english-premier-league 64. References cont.Personal Interviews with:Anil Senewiratne, Marketing Director, CourtsBuys advertising on TV StationsLiga Gukisuva, marketing Vodafone Fiji LimitedBuys advertising on TV StationsTevita Gonelevu Fiji TV Chief Executive Officer 65. Josese TuragavaS95007912Shivandhna RaniS02000886Anil SenewiratneS11095516Taniela MatakibauS83411330Stuart GowS11100919 66. Always Something Good to Come Home To!MBA-440 Strategic Management Group F November 2014