Due to changes which are occurring every day, there are many new trends which are affecting the entertainment and media industry. Some of things which are introducing these new trends include; demographic changes, new technology, changes in financial structures, legal issues and globalization (Anonymous). New technology is far more affecting this industry because with availability of internet, people are able to access all forms of entertainment and need not be in televisions. The entertainment industry has to be up to date with technology in order to meet the consumer needs. They being forced to control costs and boost profit margins due to high demands of entertainment.
The first trend affecting Viacom is availability of entertainment content online and at cheaper prices. Therefore many people are seeking entertainment online. Therefore, Viacom has to make sure it copes with this. Second trend is the increased use of wireless access to the internet (Anonymous). This is ensuring that that people can get entertainment while on the move and do all other things even business while still travelling. Third is online retailing where customers do not have to travel to the shops to buy or make payments but do everything online (Anonymous). Fourth trend is advancements which are occurring to communication due to advanced technologies. Globalization is occurring on the entertainment industry hence the customers are increasing making it necessary adapt to the high numbers of consumers (Anonymous). There are many other competitors in the market who come up with better deals hence Viacom have to gain competitive advantage. The economic regulations are changing starting with government regulations and inflation which Viacom has to be in line with.
The outlook of the entertainment and media outlook shows that the demand for entertainment products is increasing as most people spends most of their out of job time on entertainment. With improvements in technology every individual needs to have a convenient form of entertainment. The industry is projected to prosper as the demand for entertainment is going up every day.
The business strategy of Viacom is producing entertainment devices which are appropriate to all demographics and distribute them every where (Wikinvst). They produce original an high quality brands. They increase revenues by creative adverts through various ways to ensure that all audience is reached. This is simply their business and revenue model. In its marketing strategy in acts as a leader in which it purposes to produce the highest quality entertainment products to an extend that it is at the top of the competition (Wikinvst). To ensure that its products are known to the customers, its adverts are of high quality and cultivating to the eye hence attracts many customers (Wikinvst). It also aims at being up to date with every change in technology. It has five main segments with cable network segment occupying the largest portion (Viacom). The culture of the company involves respecting people’s likes and dislikes and considering the ideas of all customers in order to meet the needs of each and every one of them. Respect is the main component of their culture.
Viacom is one company which has the ability to attract talent since it aims at ensuring that its employees have or acquire the necessary skills required for coming up with quality products. Talents have a very huge impact on attracting customers since high talent leads to customer satisfaction. The management at Viacom is disciplined and competent hence it is in a position of running the company perfectly well (Viacom). The company does not only rely on one talented manager but all the people in the management team are talented and are able to contribute extensively to the company. The looming success issues which may seem available is the ever changing and improving technology which if they are not up to date with it , it can lead to their failure.
Anonymous, Major Trends Affecting the Entertainment and Media Industry, accessed on 16 May, 2011 http://goliath.ecnext.com/coms2/gi_0198-90200/Chapter-1-Major-trends-affecting.html, 2011
Viacom, Prior to Spinning off Viacom and CBS Corporation, accessed on 16 May, 2011, http://investing.businessweek.com/businessweek/research/stocks/private/snapshot.asp?privcapId=312182, 2011
Viacom, Viacom Inc, accessed on 16 May, 2011, http://www.fundinguniverse.com/company-histories/Viacom-Inc-Company-History.html, 2010
Viacom Inc, Viacom Reports Quarterly Results, accessed on 16 May, 2011 http://www.viacom.com/news/Pages/newstext.aspx?RID=1456793, 2010
Wikinvst, Business Strategy, accessed on 16 May, 2011 http://www.wikinvest.com/stock/Viacom_%28VIA%29/Business_Strategy, 2010