Core Issues:

- Expand the base of UTV in the Indian market and scale up operations in an existing vertical as well as
to start a new vertical.
- Expand in international markets through a partnership with a foreign studio.
- Acquire promising companies in India and abroad and then expand and strengthen its base.

Current Strategy:
- International strategy
- UTV is looking for diversification via strategic alliances. The company wants to expand globally in all
its business.

Internal Analysis / Strategic Capabilities:

Testing Strategic VRIO:

Valuable?

Rare?

Inimitable?

Supported by
Organisation?


Competitive
Implications

Human
Resources:
Leadership


Yes

Yes

Yes

Yes

Sustained
competitive
advantage


Functional
Areas
Resources Competencies Strategic
Capability
Type of
Capability
Human
Resources
(Intangible)
Employees

Company has employees with the
expertise and skills required. Eg,
Rohinton Screwvala
Right
expertise
and skills
Distinctive
Financial
Resources
(Tangible)
Balance sheet
Cash flow

ROE of 6.85% Strong
balance
sheet
Threshold
Operational
Resources
(Tangible)
Employees
Physical locations
Productions
Resources used in the operation of
the company; media equipment
used for production, headquarters
etc, animation and films made
Appropriate
resources
Threshold
Industry Analysis (Porters 5 forces):
The threat of entrants: Low
Factor

Supporting Facts

Is Threat high/low to
the company?
Scale and experience Will cost entrants a lot of
money to create
productions.
It also brings about the
advantage that an
experienced company
has compared to a new
entrant.
High Low
Access to supply or
distribution channels
There are a number of
suppliers (TV channels) to
choose from.
However, distribution
economies or ownership
of scarce resources eg,
people, broadcasting
licenses.
Poor access to these
channels = high barrier to
entry.
Low Low
Expected retaliation Entrants will face
competitors aggressive
expansion to maintain
market share.
Some countries may set
up legal barriers to
protect their home-
grown media companies.
High Low
Legislation or
government action
Entrants will have to
consider legislations of
different countries to
operate in.
High Low
Differentiation Not much of a
differentiation when it
comes to media
production.
Low Low



The threat of substitutes: High
Factor

Supporting Facts

Is Threat high/low to
the company?
Price/Performance ratio Substitutes for films
radio, television,
internet etc.
High (because the films
may ultimately be
played on TV or
internet)
High
Extra-industry effects Consumer behaviour
may affect this element.
Some customers prefer
to wait for the movies to
be shown on TV instead
of spending the money
to watch the films in the
theatres.
High Low

The power of buyers: High
Factor Supporting Facts

Is Threat high/low to the
company?
Concentrated buyers Buyers can switch to
another supplier since
there is an abundance of
suppliers in the market.
High High
Low switching costs Buyers can switch to
another supplier as and
when they wish without
incurring any penalty or
additional cost.
Low High
Buyer competition threat Chances of backward
integration from the
buyers point-of-view are
not as likely.
Low Low







The power of suppliers: Low
Factor Supporting Facts

Is Threat high/low to the
company?
Concentrated suppliers Readily available
suppliers to choose from.
Low Low
High switching costs It does not require high
switching costs due to
the expensive nature of
the industry.
High High
Supplier competition
threat
Chances of suppliers
forward-integrating not
as likely.
Low Low

Competitive rivalry: High
Factor

Supporting Facts

Is Threat high/low to
the company?
Competitor balance Similar-sized competitors
like Zee Telefilms, Sun
Network etc have their
own cult brand images.
High High
Industry growth rate Indian M&E industry
attracted many
international players.
High High
High Fixed costs Entry to the retail
industry does entail
massive working capital.
High High
High Exit barriers A business size equivalent
to UTV will face high
redundancy and will
make massive losses
since the industry
requires a big amount of
entry working capital in
the first place.
High High
Low Differentiation Not much of a
differentiation in the
M&E industry.
Low Low

Overall, the M&E industry will be unattractive for UTV if it decides to expand globally alone.

SWOT Analysis:
Strengths:

- Strong brand presence.
- Expansion of UTV group across 3
verticals allows for synergy across in
terms of content development,
communication and development of
leadership allows employees to
broaden experience and enrich careers.
- Targets moviegoers and television
viewers at the same time.

Opportunities:

- Increase the type of content eg, news
and educational channels.
- Introduce channels worthy for
customers to pay. After paying, they
lock-in customers loyalty and if
customers switch, they may face
switching costs.

Weaknesses:

- High investments in the production
equipments.
- Businesses in the M&E industry face high
risks.

Threats:

- IP rights infringement increasing
piracy.
- Competitive pressure
- Alternative sources of entertainment

Critical Success Factors of media industry:
They are:
- Having an alluring brand name to attract customers.
- Customer inertia; to lock-in customers and exists when a customer who changes from one supplier
to another has to face switching costs.
- Distribution economies or ownership of scarce resources eg, people, broadcasting licenses.
- Knowing its target audience.








Done during class:
Strategic position:
- UTV good position to venture overseas to seize the opportunity of having higher viewership as it has
strong LOCAL brand presence. To add on, exhibit 10 shows that Hungama TV has the highest GRPs
(higher viewership) over 42 weeks as compared to other competitors such as Zee, Star etc.
- But bad position to defend against threats as it is financially weak.
Strategic choice:
- Can they:
o JV? Using disneys $$ from selling hungama tv as backup?
International drivers:
Market: 25 million Indian customers globally (from case), 3 million from US (from google). Hence there are
similar customer needs. Global customers who are non-indians also watch bollywood/hindi shows, thus,
there is a market to venture into overseas.




http://prezi.com/zpzohzwolcgb/copy-of-utv-and-disney-a-strategic-alliance/
http://businesstoday.intoday.in/story/ronnie-screwvala-disney-utv/1/197084.html
http://www.slideshare.net/abhishekchatterjee51/a-market-analysis-of-utv-motion-pictures

PESTEL:
http://www.scribd.com/doc/28337429/PESTLE-analysis-of-Film-and-Animation-Industry
http://www.ukessays.com/essays/media/indian-film-and-entertainment-industry-media-essay.php
http://prezi.com/rpoaopfhzkbr/pestle-analysis/
CSF:
http://www.intellimediasolutions.com/careers/HR_Folder/Articles_Folder/The%20media%20industry%20A
Generaloverview.pdf
5 forces:
http://prezi.com/9ysfxpotumgu/disney/
http://www.equitymaster.com/detail.asp?date=10/12/2007&story=3&title=Zee-Entertainment-Porter-
analysis
swot:
http://www.mbaskool.com/brandguide/media-and-entertainment/5941-utv-software-communications-
ltd.html
http://www.evankropp.com/wp-content/uploads/2013/10/SWOT_Analysis_Disney.pdf
http://www.slideshare.net/ravishasethi/walt-disney-17949844