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This assessment would try to identify as well as critically evaluate the competitive situation an event and media management company had faced. In this paper we shall focus on the topics : strategic management ,identifying the key issues, creating a strategic alternatives and applying the best alternatives approach to sustain in a competitive situation. This paper reviews a perspective of the situations when an organizations is not able to sustain in a market due to the high level of competition from the new entrants or existing rival companies
The Media and Entertainment industry is one of the fastest growing sectors in India. Poised to grow at a rate of 14% to touch US$ 28 billion by 2015, the sector registered a growth of 11% in 2010 over US$ 14.54 billion in revenue in the year 2009.It is estimated that the industry will achieve a 13% growth rate in 2011. While television and print continued to dominate the Indian M&E industry, sectors such as gaming, digital advertising, and animation VFX grew at a faster rate and show tremendous potential in the coming years.When it comes to the entertainment industry, there's nothing like show business! Entertainment industry in India encompasses the film,televisions and events. One of the fastest growing sectors in India is the entertainment industry."RED PHOENIXX" entertainment company is an independent event management and entertainment company started in the year 2005, that is when the event business was booming in the southern part of india. It success is derived through experience in event management organization,creativity,flexibility,strategic thinking and choice of technology.it creates and deliver successful events that works for their clients and enjoyed by an audiences.
Services and products : red phoenixx entertainment
Event management services
"Even if you are on the right track, if you stand still, you will get run over by the next train" - Will Rogers
Strategic management is a continuous process that checks and controls the business of an organizations, it helps the organizations in analyzing the market needs and the level of competition. It helps an organization to sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment
events industry is huge, growing and highly fragmented, and in a time of declining print revenue, offers
integrated media companies a highly profitable, defensible, Web resistant platform for growth, according to a new white paper
(from DeSilva + Phillips and AMR International)
As we all know there is no industry in this world which doesn't have any competitors, let it be the film industry or the aircraft industry or any service or healthcare industry. Sustaining in the market is one of the biggest factor which all companies go through. The company which are still existing in the competitive world are the organization which change their strategies based on the external or imternal influences. In this assessment we are evaluating an event and media management company called red phoenix entertainments. In this case you will see the evolution of an event and media management company and the problems it faced due to the external and internal changes. Red phoenix entertainment is a pulsing organization
Key issues in the organizations:
for generations any organization let it be a small or a big one, whether its in private sectors or public sector , have been subjected to huge amount of pressure and forces of change , which have led to huge transformation in organizational structures and in the way management had to operate and succeed. Organization which identify the internal as well the external issues which are effecting the success rate of their company would subject to change in the way they are working or get adapted to the current trend in order to sustain in the industry which is full of threats from the competitors
SWOT : SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture
In this section we focus on the key issues the organization has faced over the period of time. Every organization has it own strengths, weakness , opportunities and threats only those organization which uses it resources in the right way at the right time will survive in this current world of competitive situation. Red phoenixx entertainment company was mainly focused in the event organizing business doing the same thing again and again for a long period of time which didn't interest the client or customers because in this field of entertainment audience love to see new and unique things and they are ready to shell out good amount of money .
Issue identified :
High service charges
Repetitive concepts and ideas used in the events(losing customer's interest)
Service is not delivered on time , due to lack of man power
Quality of the services which are being given to their clients were not good just to manage the cost
In the intial stages the company had fixed its service charges to 12% to the entire budget of any event which was not competitive as years go by new entrant made way into the market and they were ready to cut down on their to provide the same service in a very cheaper price than this company. In their quest for making more money the company didn't cut down on their service percentage instead they compromised on the quality of the service(i.e cheap vendors, who obliviously would not give the quality supply) The company were just focused on generating revenue in some way or the other , it lost its core value about the service industry in knowing the perspective of the clients and their requirements
An Approach to outdo in a competitive situation using competitive strategy
According to Michael Porter(1980) "Effective strategic management is the positioning of an organization , relative to its competitors, in such a way that it outperforms them. Marketing, operations and personnel , in fact all aspects of the business, are capable of providing a competitive edge - an advantage which leads to superior performance and superior profits-orientation firms."[Michael porter]
The most successful competitors will:
Create competitive advantage in delivering that value and
Operate the business effectively and efficiently.
Any service or product is said to be unique if the client or customer sees some new elements or uniqueness in the product which make it distinct when compared to the other competitor's service. There has been a link between price and quality , all customers evaluate quality of any product or services with the price they have quote. In order to sustain and retain in a superior position a company needs to follow 2 basic parameters:
Parameter 1 - A company can compete by achieving lower cost than its rivals and , by charging comparable prices for its products or service, creating a superior position through superior profitability ,or through superior profitability or through differentiation, adding value in an area that the customer regards as important, charging a premium price, and again creating a superior position through superior profitability
Parameter 2 - the arena in which the company seeks to compete can be a broad range of segments or a narrow range, perhaps (Michael porter, )
Generic competitive stratergies :
The 2 parameters mentioned above leads to a 3 generic strategies is as explained in the figure below Cost leadership: is where the company achieves lower costs than its rivals and competes across a broad range of segments
Differentiation : occurs when the company has a range of clearly differentiated services which would appeals customers from different segments
Focus strategies are where a company chooses to focus on only one of its services or a limited range of segments
LOWER COST DIFFERENTIATION
1 Cost leadership
3a cost focus
3b differentiation focus
(simon and Schuster from porter,ME(1985) Competitive Advantage: creating and sustaining superior performance, free press)
Let's start with the universal principles of how to manage change and how you approach any business initiative or any activity that may require or instigate change:
Clarity in all areas, especially of the business need for the change, of the specifics of the change, the benefits of the change, and most importantly the impacts of the change.
Communication - constant communication - two-way communication that explains clearly what is happening or not happening and why, and that demonstrates to people that you have thought through the impacts of the change on them, and that you are prepared to work with them to make it work for them as well as you.
Consistency - in all aspects of the way in which you lead the change, manage the delivery, handle the communication and ensure the realisation of the benefits.
Capability - constant attention to the management of the tasks, activities, projects and initiatives that are delivering the capabilities into your organisation that will deliver the benefits that you are seeking. Ensuring that your people have the full resources and capabilities they need to support them through the change.
What we infer from the above theories and approach in a competitive situation is that the company should have looked in for other alternative as in looking to create a base in other cities where the level of completion is less or the trend has just started and use the marketing strategy to make the presence of the company be felt by actively doing some events let it be some social events or some corporate events , event management is a field where you have to grab whatever comes in your way because end of the day what matter is the presence of your company, how active is the company?. As we say numbers does matter ,I would suggest the company to work on any event they have been approached to do but not on the cost of quality and services.
On seeing the entire case of why this organization has failed to sustain in a competitive situation is because of the way the organization was functioning , its less knowledge about the current trend in the market and couldn't sense the wants of the customer. Competitive stratergy concerns the way in which organizations choose to compete and position themselves- competitive advantage may or may not be an outcome of this. To achieve true advantage an organization must find opportunities to be different in many ways which are meaningful to customers. If this organizations had to sustain in the long run and perform well in the scenario of competition then they should use the competitive strategy