A Study On Chongqing Broadcasting Group's Development Strategy

In a highly competitive market, there will be ten answers from ten companies regarding the options of competitive strategy.Being an emerging industry, China's broadcasting industry is the one full of competition and opportunities as well. Employing the SWOT analysis method, Porter's theory on competitiveness, the dissertation analyzes the inside and outside environment for the development of the broadcasting industry, leading to the conclusion that there are more opportunities for the development of broadcasting industry than the threats, more advantages than disadvantages.The case study of the dissertation is based on Chongqing Broadcasting Group (CBG), with detailed analysis on different aspects such as resources and competence. At the same time, the article tries to find out the advantages and disadvantages of CBG's core competitive ability, through analysis employing the VIRO model. The core competitiveness of CBG lies in the advantage of the channel, the advantage of the brand and the advantage of human resources. The disadvantages include the deepening of competition in the industry, the overall business scale which urgently needs to be expanded, the lacking of excellent management personnel, the great need for the capital in a peak investment period, the need to further establish the inner incentive mechanism, stimulating the working enthusiasm and the innovation ability of the staff.According to the above comprehensive analysis , the article proposes the development strategy for CBG: a vertical integration strategy with a relevant diversity strategy to certain degree.On the basis of strengthening the media aspect which is the main business of a broadcasting company, the upper and lower reaches of the industry chain should be further improved, applying relevant diversity to an acceptable degree, so as to increase new profit models and points. These include the development of the content industry in the upper reaches of the industry chain; the improvement of the value of the cable TV network with the expanding of the value-added service on it; the construction of the Dazu Film and TV Base which is in the lower reaches of the industry chain. The Dazu Film and TV Base is one example of the relevant diversity strategy. With film and TV base as the theme, business like the hotel, the spa, tourism and training are also included. The content industry, digital TV, value-added network service and the relevant diversified industries will apparently contribute to CBG's perfection on industry chain and profiting ability.Although some of the data adopted in the dissertation are historical data and certain omission may occur in the discussion of the whole process of the broadcasting industry's development and strategy selection, the dissertation is still expected to contribute to the study in the field to some degree.