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Strategic management case questions

Strategic management case questions

Strategic management case questions

Description

here are two questions need an answer, and i will do a presentation, so i need answers for the case to submit and 2 slide powerpoint to present. each question has a slide

The Video  Streaming Services industry has boomed as entertainment is delivered to  consumers in new and innovative ways. Industry operators provide the  infrastructure for customers to watch videos via the internet. Video  streaming services generate revenue through paid subscriptions,  video-on-demand transactions, and paid advertising. Demand for industry  services hinges upon the quality and variety of content available on a  streaming platform, in addition to its price and accessibility. The  number of consumers that have cut the cable and transitioned to the use  of one or more industry services has increased sharply over the five  years to 2022. In 2020, more households had Netflix than the leading  traditional cable TV service. This shift in consumer preferences has  been facilitated by the improving ability of industry operators to  provide vast content platforms viewable on-demand due to improving  internet speeds and software capabilities.
The industry is  anticipated to encounter continued revenue growth over the five years to  2027, albeit at a slower rate. As consumers keep cord-cutting and the  number of cable TV subscriptions keeps falling, demand for the  industry’s on-demand services will likely rise. This includes live  entertainment, which has traditionally been considered exclusive to  cable TV. Altogether, industry revenue is anticipated to keep rising an  annualized 12.2% to $91.4 billion over the five years to 2027. As  industry participation continues to bloom, the industry is likely to  become more saturated during the outlook period. As a result,  consolidation, in the form of mergers and acquisitions, may become  increasingly common over the next five years. (IBISWorld Report).

1. Five-Forces. Based on your analysis of the Video Streaming  Industry, what is the most predominant of Porter’s Five Forces? Explain  your reasoning and how it affects the industry’s profitability (remember  margin of the industry = price to customers ®bsp;the cost of the  incumbents to operate. 

2. Driving Forces. The industry is anticipated to grow over the next  five years to 2025. As consumers keep cord-cutting and the number of  cable TV subscriptions keeps falling, demand for streaming services will  likely rise. This includes live entertainment, which has traditionally  been considered exclusive to cable TV. Questions: A.) What forces are  driving change in this market for streamed entertainment? B.) Are the  combined impacts of these driving forces likely to be favorable or  unfavorable in terms of their effects on competitive intensity and  future industry profitability?

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