Strategies Employed by Media Managers to Solve Challenges Faced by Media Institutions
Modern media institutions often encounter challenges in managing their operations. Demanding challenges have been identified and outlined by media researchers in the media industry. Without a doubt, encountering problems dramatically affects the performance of the institution. Therefore, media managers have developed strategies in the media industry to facilitate the institutions’ activities. Managers in charge of media strategies tirelessly identify the appropriate demographic to implement a selected plan. They hope that the strategy employed attracts targeted attention and emerges successful. Strategies act as a bridge to the success of the institutions. Each policy is initiated and implemented with a specific goal.
Strategies used by media managers to acquire market share.
The market share is an essential factor in media institutions in the offering of services. It is a situation where the institutions establish particular products or services in the market. Media managers believe that gains attained from market share guarantee a long-run increase in sales. A fair market share is achieved through several strategies. Firstly, managers estimate profitability created by the services and products provided in the market. Increasing the institutions’ profitability raises the capacity of a dominated market. A manager can achieve the goal of increasing profits by offering more products and services to the audience. The increase in sales volume in demand captures more returns (Terho, 2015). Employing the economies of scale in the creation of services, sharing, and marketing helps secure a productive environment. Also, obtaining favorable volume discounts in the advertising of products and services helps gather more profit for a convenient market share.
Secondly, estimating the risk strategy plays an essential part in establishing a market share. The level of a risk to the media institution mainly depends on the level of the market share. Media Researchers have found out that higher risk is expected from institutions with low market share, whereas the risk decreases in high market share situations. Therefore, identifying the possible risk allows the institution to understand the motive of the competitors. Once the media institutions point out the potential risks in the market, managers effectively conduct ample research on marketing. It is a scenario that enables managers to strengthen particular products and services which easily dominate a targeted market. Consequently, the institutions indulge in operating efficient information systems and recruitment of skilled marketing personnel hence raising the levels of the market share.
Lastly, finding an optimal market share level helps media managers maintain the targeted market portion. The strategy mostly expects the managers to make an appropriate comparison of the changes that occur in the profitability factor and the possible risks. To acquire and sustain a market share needs a comprehensive analysis of the cost to achieve the targeted market share (Terho, 2015). Long-run profitability needs to cater to the expenses incurred; otherwise, the media institution would be at more risk. A decrease of risk at each market level helps the media industry efficiently market its products and services to the audience.
Strategies used to improve cash flow in media institutions
Cash flow is one of the crucial elements in the management of media operations. Maintaining positive cash flow is the dream of every institution. Proper cash flow is a pillar to the success of an institution’s excellent performance. Cash flow may not be necessarily be affected by employing more cash coming in, but also cash limitation contributes. It is, therefore, a concern by media managers to engage in effective cash flow management to sustain a media institution. The critical strategy towards cash flow increases is the reevaluation of the institution’s operating expenses (Shah et al. 2017). Media managers have embarked on dropping unnecessary expenses in media activities. If the costs are necessary, then the managers look for a cheaper alternative that is cost-efficient. Maintaining an efficient business process in media operations contributes to managing cash flow. Media managers not only cut costs but also focus on saving time. Purchase of high-speed equipment and well advanced technological equipment to provide services helps minimize wage expenses, thus cutting down expenses.
Additionally, media managers often expand the sales market for services offered by media institutions. Creating new income sources, without doubt, increases cash flow in the media industry. The volume of sales presented to the audience is mostly influenced by the marketing strategy used. Inventing an effective marketing strategy helps reach other potential customers other than the targeted audience. Attracting more customers to purchase the services provided significantly increases market sales (Shah et al. 2017). Encouraging existing customers to utilize more services and buy more products also increase sales in the market. Media institutions, therefore, provide similar services that satisfy their customers, leading to increased spending. Numerous advertisement of their products and services creates awareness of exciting products and services among the customers. Media managers continuously review the needs of their loyal customers to maintain their capacity in the market. Loyal customers may be motivated by rewarding them or offering discounts. It is an opportunity to encourage the audience to contribute to the growth of the media industry.
Strategies implemented in the development of new products in media institutions.
A well-structured strategy for new product management is essential in avoiding time wastage, save money, and facilitates proper allocation of the institutions’ resources. Several strategies enable comprehensive planning, research, and implementation of new products. Empowering better decision making in media institutions is one of the critical strategies. Having a clear understanding of what it means to launch new products in the market makes it easier for the institutions to dominate the current market (Nguyen et al. 2015). Media managers enforce trust among the team members to navigate through the challenges of arriving at the right decisions on new products and services. Making fast and quality decisions considering the general tradeoffs help achieve the requirements of developing new products and services. Familiarizing with the importance of the new products comes as a result of the right decisions. Each decision captured is assigned to a particular person for more natural visibility and monitoring.
Secondly, tightening up the institution traceability contributes to the development of new products. Ensuring there is compliance with the laid down governmental requirements enhances the implementation of new products in the market. The traceability path is, therefore, strengthened by adherence to the specific and certified regulations. An adequate traceability analysis enables the media institution to prove the suitability of products and services. Meeting the expected deliverable terms helps create awareness for the audience concerning the innovative products. Traceability strategy sometimes requires changes in its development to foster the invention of new services and products (Nguyen et al. 2015). It is also a strategy that identifies the impacts expected on new products and risks involved. Once the analysis is done, the latest products are verified before being released in the market to ensure quality services are offered. Therefore, media institutions comfortably satisfy their customers’ needs through new products.
Strategies towards the expansion of business models in the media industry.
The business model embraced in media institutions determines the success of their operations. It is a plan that needs to be well calculated to achieve the targeted goals. The ability of the program largely contributes to the growth of the business in a competitive environment. Media managers aim at the expansion of their business models for a better tomorrow (Saebi & Foss, 2015). Importantly, media institutions need a suitable financial environment for ongoing business model expansion. The growth of the business is, therefore, facilitated by various strategies. Employing the diversification technique is a crucial factor. Managers encourage small media institutions to indulge in the creation of new products and provide them to new markets. However, the strategy needs optimum concentration for the plan to be efficient. Diversification comes along with detailed market research to determine the consumers’ preferences in the new market.
Also, managers embark on the acquisition of other related media firms. Media institutions enhance their business models through purchasing of another media company for the expansion of their operations. It is a strategy that fosters product line expansion. The institutions smoothly indulge in new markets, which adds value to media activities. Once the processes are enhanced, the costs incurred reduce; hence a more extensive market share is achieved. The acquisition is beneficial to media institutions who lack knowledge of particular regions they would like to venture (Saebi & Foss, 2015). The strategy offers the necessary skills to enforce a relevant business model. Consequently, media companies understand what would be achieved by an effective business plan.
Market development is another strategy to expound an institution’s business plan. The market expansion strategy is primarily practiced in the media industry, where the current products and services are introduced in a new market. Media managers consider expanding the market for their products once the prevailing situation in the current market is not satisfying. Identifying new markets for media products and services strengthens the business plan leading to favorable benefits. The strategy is accessible to managers involved in small company business plans. They get an opportunity to increase sales once they satisfy the new markets with quality products.
Strategies facilitating the implementation of new technologies.
Media managers strongly believe system upgrade helps in the maintenance of competitive advantage. New technology thus produces significant gains if there is proper implementation. For effective implementation, the media institution employs the following strategies. First, managers use their software training tools well known by media personnel to establish newly innovated technology (Nagimov, 2018). An opportunity is created whereby media employees are guided on how to make use of every aspect of the technology. Embracing familiar software tools helps in the identification of the essential sections of the new technology. Once employees are trained, it is recommended that an assessment be issued to test the understanding of modern technology.
Secondly, considering the right technology partner ensures the success of the new technology. Managers engage with trust partners whom they can rely on for a technological change. A right partner has a full understanding of the innovative technology in terms of its construction and design. The appropriate partner relevant offer advises on how to make efficient technology applications. They also provide new options that would optimize the institution’s resources (Nagimov, 2018). The media institutions, therefore, access the right technology that ensures facilitates a smooth flow of information among the media personnel. Optimal utilization of new technology enables media managers in their business operations as they cut down time spent on IT operations.
Strategies applied by media managers to respond to competition and external forces.
A quick response to the needs of the customers enables media institutions to navigate through the tough market created by competitors. Keeping a focus on the customers enhances competitive advantage and helps manage pressure from external factors. Competition is a great challenge that is urgently addressed by media managers. Several recommendations are thus implemented to curb competition challenges. To begin with, managers understand the landscape used by competitors. Although understanding the customers is the necessary first step, a comprehensive analysis of competitors will be beneficial to the institution (David & David, 2016). Managers also venture into the familiarization of market environment factors such as regulations that may influence the workflow. The competitor landscape helps the managers identify the active institution in the media industry hence act accordingly. Getting to know the techniques used by competitors helps managers restructure their internal resources to accommodate external factors.
Besides, managers cooperate with the already existing competitors in the market. Competitors may become strategic partners when media managers engage in a favorable union. Once a stable and valuable relationship is established between media managers and competitors, the completion capacity reduces. Media institutions, therefore, benefit from competitors. Often, managers get the opportunity to distribute their products and services through competitors’ channels. Advantages enjoyed by competitors enable media managers to build a stable and successful business operation. Competitors also benefit from media managers since they learn more about efficient business planning. Taking care of competitors helps reduce the level of completion in the market.
Appropriate implementation of media strategies leads to increased growth of media institutions. Embracing a growth strategy has helped in the definition and articulation of business plans in the media industry. Media institutions often maintain their focus towards their goals through the growth strategies. Both the managers and the employees keep track of their operations and future achievements. Efficient decisions are made to secure a bright tomorrow for the institutions in the competitive market. Therefore, successful strategies are developed by media managers for the expansion of media institutions.
References.
Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. European Management Journal, 33(3), 201-213.
Shah, D., Kumar, V., Kim, K. H., & Choi, J. B. (2017). Linking customer behaviors to cash flow level and volatility: Implications for marketing practices. Journal of Marketing Research, 54(1), 27-43.
Nguyen, B., Yu, X., Melewar, T. C., & Chen, J. (2015). Brand innovation and social media: Knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability. Industrial Marketing Management, 51, 11-25.
Nagimov, A. R., Akhmetshin, E. M., Slanov, V. P., Shpakova, R. N., Solomonov, M. P., & Ilyaschenko, D. P. (2018). Foresight technologies in the formation of a sustainable regional development strategy.
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach, concepts and cases. Pearson–Prentice Hall.
Terho, H., Eggert, A., Haas, A., & Ulaga, W. (2015). How sales strategy translates into performance: The role of salesperson customer orientation and value-based selling. Industrial Marketing Management, 45, 12-21.