Explain
the dynamics of radio content delivery require the companies to change their business
models
FOR MORE CLASSES VISIT
(27.5% market share),
iHeartMedia Inc. (18.1% of market share), and CBS Corporation (7.3% of
market share). The major players of the radio broadcasting industry experience a decline in their
profits because of lost advertising deals and contracts. Now, advertising agencies prefer other
methods to advertise their content mostly through the Internet services. The growth estimates
will continue to decline. However, the companies are adapting new business models and
restructuring toward digital platforms. The adoption of new models and restructure will help to
attract consumers and to keep them satisfied (Petrillo, 2016). According to Petrillo, the key
success factors relating to the radio broadcasting industry are the abilities to quickly adopt new
technological advances, to attract local communities through advertising, to access a highly
skilled workforce to bring and to increase the value, to acquire and maintain broadcasting
licenses from the FCC, and to adapt to consumers’ needs and preferences (Petrillo, 2016).
This paper will cover the background of the radio broadcasting industry and analyze
important factors of industry success. Before determining success of an industry, an analysis of
the general environment and five forces will be conducted. Afterwards, three specific radio Radio Broadcasting Industry 5 broadcasting companies will be analyzed for profitability, competitiveness, and growth to
determine the industry’s future outlook.
Industry Background
The radio broadcasting industry is declining. Technological advancements create
technological disruptions, challenging dominant players to keep up with the industry’s changes
or to exit the industry. New players from external markets intensify competition. To understand
the important characteristics and challenges the industry and its dominant players experience, the
industry background should be identified in terms of the industry’s products and services, life
cycle, and driving forces.
SIC/NAICS Codes
Standard Industrial Classification (SIC) and North American Industrial Classification
Systems (NAICS) codes help to identify a particular company’s primary business activity
relevant to a specific industry. The Radio Broadcasting industry has a specified number of codes
relevant to the industry. The SIC code for the industry is 4832. This code is for radio
broadcasting stations regarding establishments that broadcast programs related to such aspects as
commercialization, religion, education, and other materials by radio to the public (Occupational
Safety and Health Administration [OSHA], n.d.).
Three NAICS codes exist. The first one is 51511. It is for radio broadcasting regarding
establishments that operate broadcasting studios and facilities to transmit radio entertainment
programs, news, talk shows, business data, or religious services (United States Census Bureau,
2012a). The second one is 515111. It is for radio networks about establishments that transmit
such materials as news services, religious programming, weather, sports, or music through over- Radio Broadcasting Industry 6 the-air broadcasts, cable, or satellite (United States Census Bureau, 2012b). Finally, the third one
is 515112. It is for radio stations for establishments to transmit a variety of broadcasting aural
programs that may originate from radio stations’ own studios through an affiliated network or
from external sources (United States Census Bureau, 2012c).
Industry characteristics
The radio broadcasting industry has some specific characteristics regarding intensified
media competition, industry consolidation, and operating efficiency. New competitors, such as
Pandora and Spotify, that use online technologies to stream their content, decreased the number
of radio listeners, and the rate keeps declining throughout time. To keep up with new industry
players, the radio broadcasting companies invest into a radio data system (RDS), which helps to
identify specific information about the radio station such as its name, type of music, traffic
announcements, radio text, clock time, and emergency alerts (Petrillo, 2016).
For the radio broadcasting industry, the major players try to consolidate their local and
national radio stations. Consolidation is the act of cutting unnecessary pieces of the business to
lower costs. For the radio broadcasting industry, removing certain local and national radio
stations lowers overall costs by decreasing the number of sales teams and equipment (Petrillo,
2016).
The industry struggles in terms of its operating efficiency affecting its profitability. The
main reason is a decline in advertising revenue because advertising agencies prefer to advertise
their content through online services because they reach a larger consumer base. Thus, the major
players are trying to restructure their business models to compete with online broadcasters
(Petrillo, 2016). Radio Broadcasting Industry 7 Industry life cycle
The radio broadcasting industry is in a declining stage of life cycle. According to
IBISWorld, the industry was experiencing a constant decline in revenues over the past five years.
The decline in revenues is a result of competition from external companies of the industry such
as online broadcasters, music streaming services, and podcasts (Petrillo, 2016). Also, new
technologies intensify the situation because people prefer to use MP3s and smartphones to
stream desired channels instead of using traditional radio like they used to. Additionally, the
decline in advertising revenues significantly affects the companies’ profitability.
Driving forces
Due to decreases in advertising expenditures, the radio broadcasting companies became
vulnerable to external industry competitors. The increasing number of online broadcasters, music
streaming services, and podcasts have drawn consumers away from listening to the traditional
radio. Also, the total time spent in vehicles decreased over the years, as a result the companies
need to look for other mediums to reach their consumer base (Petrillo, 2016).
General Environment
The general environment discusses the macro environmental factors related to the radio
broadcasting industry such as political, economic, sociocultural, technological, environmental,
and legal. These environmental factors are typically out of the control of the industry’s players;
however, competitors should be aware of them and act accordingly.
Political/Legal
The Federal Communications Commission (FCC) monitors the companies regarding
proper use of radio frequencies (signals), licenses, and content. The FCC also has the power to Radio Broadcasting Industry 8 penalize the companies if they do not follow FCC regulations. Additionally, the FCC prohibits
“cross-ownership of other forms of media” (Petrillo, 2016). Furthermore, the
Telecommunications Act of 1996 excluded the limitation on the number of owned radio stations
by one entity; however, there is still a limitation on the number of entities that could be owned by
a particular company within a specific market segment (FCC, 2014).
Economic
The shift of advertising agencies from radio to online services has hurt the industry’s
profitability as the companies’ main profits come from advertising time. Furthermore, the
decrease of advertising is directly proportional to the advertising companies’ GDP performance.
Depending on how well these companies perform, the advertising budget will vary because
companies spend more during a strong economy as compared to a weak economy. Due to a
decrease of advertising, the companies decided to consolidate their local and national radio
stations to increase its operating efficiency causing an increase in unemployment within the
industry (Petrillo, 2016).
Sociocultural
Decreasing total vehicle miles and demanding consumer base that desires a different
variety of content within a short period of time make capturing listeners to their radio broadcasts
difficult. Also, with new technologies allowing quicker access to desirable content with no
advertisements for a considerable fee, listeners can create their music libraries to listen to and
search the content they are looking for through the Internet services. Technological advances
from external industries have drawn away the consumers’ attention and have kept intensifying
competition for the radio broadcasting companies (Petrillo, 2016). Radio Broadcasting Industry 9 Technological
The industry improved its standard of quality. The companies use digital and HD quality,
and move toward satellite radio streaming by providing subscription fees to consumers to access
more data and have more options compared to terrestrial radio broadcasting. Also, the companies
adopted a radio data system (RDS) that upgraded radio’s capabilities and improved consumers’
experience. However, external technological advances also reach a large consumer segment that
allow consumers to access the content broadcasted on radio faster, or find alternative sources that
provide similar content (Petrillo, 2016).
Environmental
The radio broadcasting companies build tall radio towers to transmit the signals over long
distances. Whether these radio towers harm the environment was always a concern for the
people. The companies place these large towers majorly in isolated environments, which could
disrupt the surrounding ecology. Therefore, the FCC conducted a project to evaluate the effects
of radio frequency exposure. In 2013, the FCC announced that radio towers did not have any
significant impacts on health or environment, making radio towers safe for the public; however,
with new technological advances, this research might become irrelevant (Zoll, 2015).
Porter’s Five Forces
The Porter’s Five Forces analyze the competitive nature of the industry. The forces used
to analyze the industry are competitors’ rivalry, power of the buyers, power of suppliers, threat of
new entrants, and threat of substitutes. By understanding these factors, companies can find their
competitive advantages within the industry. Radio Broadcasting Industry 10 The Competitors’ Rivalry
The competitors’ rivalry is moderate to high. The four dominating companies within the
industry have approximately 59% of market shares, making them the dominating force of the
industry. Because of the market share, these companies are able to negotiate major advertising
deals and expand operations for better equipment. As for the local and small radio stations, they
struggle to get sponsorships and deals (Petrillo, 2016).
Power of the Buyers
The power of buyers is low. There is a heavy traffic of customers, and individually
customers do not have any impact on radio broadcasters. However, due to consumers having a
variety of services and substitutes to choose from such as Internet services, MP3s, music
streaming services, and podcasts, radio broadcast stations need to improve their services to
attract and retain their consumer base. The switching costs between competitors is low, but
consumer base tends to be pretty loyal to the radio broadcaster as long as it satisfies its needs are
satisfied (Petrillo, 2016).
Power of the Supplies
The power of suppliers is high. There are multiple suppliers for the radio broadcasting
companies depending on the content they sell. For instance, a record label has a variety of
services to spread their products, and radio broadcasting is one form of presenting the content.
Therefore, radio broadcasting stations have no control over their suppliers since the suppliers can
choose to use a different platform to promote their content. With advancements in new
technology, radio broadcasters lost their promoting power (Petrillo, 2016). Radio Broadcasting Industry 11 Threat of New Entrants
The threat of new entrants is low to moderate. Firstly, one of the main barriers is the
Federal Communications Commission (FCC) that requires licenses to transmit the radio signal.
Also, the FCC limits the number of radio broadcasting licenses because radio frequencies are
sparse. Furthermore, the Telecommunications Act strictly regulates where radio broadcasters can
broadcast from and that location of their towers does not interfere with existing technologies
(Petrillo, 2016).
Threat of Substitutes
The threat of substitutes is high. New technologies allow external companies to enter the
radio broadcasting industry without following the industry’s regulations. For instance, music
streaming services such as Spotify and Pandora stream their content to consumers using mobile
devices and allowing consumers to choose the desirable music stations according to their
preferences (Petrillo, 2016).
The number of radio broadcasting stations
Cumulus Media Inc. owns 454 stations broadcasting in 90 US media markets, and
manages more than 8,200 broadcast radio stations through Westwood One network and other
digital channels reaching to approximately 245 million people each week (Cumulus Media Inc.,
2015c). Big geographical coverage allows the company to attract and to provide services to
advertisers and satisfy listeners because of national reach and local influence (Cumulus Media
Inc., 2015c). It is a valuable, rare, and hard-to-imitate resource due to large capital investments
and large scale. The resource is well organized to capture value, bringing a sustainable
competitive advantage to the company. Radio Broadcasting Industry 12 Portfolio growth through strategic acquisitions
Cumulus Media Inc. is the second largest radio broadcasting company in the United
States. The company operated 454 stations across 90 media markets, and has its presence in eight
of the top ten radio markets. In 2011, Cumulus made a major deal by acquiring Citadel
Broadcasting Corporation (CBC) for $2.3 billion. There were some major station brands such as
NBC Blue, ABC Radio and ESPN Radio Network under CBC with over 230 owned radio
broadcasting stations, 4,400 affiliate radio stations, and approximately 180 online streaming
websites and podcasts (Petrillo, 2016). Additionally, Cumulus acquired and merged with
Westwood One network in 2013 after selling 54 radio stations to Townsquare Media, LLC for
$235 million in cash the same year (Cumulus Media Inc., 2015c). Cumulus also swapped 15
stations in small and mid-size markets in exchange for five radio stations in Fresno, California
(Cumulus Media Inc., 2015c).
Portfolio growth through acquisitions is highly valuable for Cumulus and well organized
to exploit. However, it is not rare within the industry and not difficult to imitate for top players;
but, as it requires large capital investments, it can be hard to imitate for new entrants. Because of
these reasons, this resource is a competitive parity with the potential to become a sustainable
competitive advantage in the future.
Ownership of FCC licenses
To own the broadcasting station, any company has to acquire an FCC license. FCC
restricts the number of owned entities within particular markets and requires companies to follow
specific rules regarding broadcast frequencies, use of equipment, streaming content and other
policies that affect companies’ operations (Cumulus Media Inc., 2015c). FCC imposes fees and
penalties for violation of its rules. However, existence of FCC also restricts the amount of new Radio Broadcasting Industry 13 entrants and limits the number of stations competitors can own, a fact which brings some
benefits to already established companies like Cumulus (Cumulus Media Inc., 2015c). Therefore,
this resource is valuable, difficult to imitate, and organized well to exploit, but not rare as other
big players within the industry have FCC licenses as well, making this resource a temporary
competitive advantage.
New technological platforms
New technologies keep entering the market, intensifying the competition as well as
enhancing companies’ performance. Consumers started slowly adapting to new technologies,
finding new alternatives to the radio. Therefore, it is significant for the companies to keep up
with new technological advances because those resources bring value, are rare as markets only
beginning to adopt them, and are well-organized to exploit. These resources are not difficult to
imitate, but are costly to implement. Therefore, new technological platforms bring temporary
competitive advantage to the company (Cumulus Media Inc., 2015c).
Highly skilled workforce
Senior management team of the company has to have required skills to lead the company
towards success. Therefore, it is important to have a highly skilled workforce to manage the
company toward right direction. Also, it is significant for radio stations to hire competent hosts,
who can attract listeners and advertisers to the radio channel. Skilled workforce brings value and
rarity to the company.
market share). The major players of the radio broadcasting industry experience a decline in their
profits because of lost advertising deals and contracts. Now, advertising agencies prefer other
methods to advertise their content mostly through the Internet services. The growth estimates
will continue to decline. However, the companies are adapting new business models and
restructuring toward digital platforms. The adoption of new models and restructure will help to
attract consumers and to keep them satisfied (Petrillo, 2016). According to Petrillo, the key
success factors relating to the radio broadcasting industry are the abilities to quickly adopt new
technological advances, to attract local communities through advertising, to access a highly
skilled workforce to bring and to increase the value, to acquire and maintain broadcasting
licenses from the FCC, and to adapt to consumers’ needs and preferences (Petrillo, 2016).
This paper will cover the background of the radio broadcasting industry and analyze
important factors of industry success. Before determining success of an industry, an analysis of
the general environment and five forces will be conducted. Afterwards, three specific radio Radio Broadcasting Industry 5 broadcasting companies will be analyzed for profitability, competitiveness, and growth to
determine the industry’s future outlook.
Industry Background
The radio broadcasting industry is declining. Technological advancements create
technological disruptions, challenging dominant players to keep up with the industry’s changes
or to exit the industry. New players from external markets intensify competition. To understand
the important characteristics and challenges the industry and its dominant players experience, the
industry background should be identified in terms of the industry’s products and services, life
cycle, and driving forces.
SIC/NAICS Codes
Standard Industrial Classification (SIC) and North American Industrial Classification
Systems (NAICS) codes help to identify a particular company’s primary business activity
relevant to a specific industry. The Radio Broadcasting industry has a specified number of codes
relevant to the industry. The SIC code for the industry is 4832. This code is for radio
broadcasting stations regarding establishments that broadcast programs related to such aspects as
commercialization, religion, education, and other materials by radio to the public (Occupational
Safety and Health Administration [OSHA], n.d.).
Three NAICS codes exist. The first one is 51511. It is for radio broadcasting regarding
establishments that operate broadcasting studios and facilities to transmit radio entertainment
programs, news, talk shows, business data, or religious services (United States Census Bureau,
2012a). The second one is 515111. It is for radio networks about establishments that transmit
such materials as news services, religious programming, weather, sports, or music through over- Radio Broadcasting Industry 6 the-air broadcasts, cable, or satellite (United States Census Bureau, 2012b). Finally, the third one
is 515112. It is for radio stations for establishments to transmit a variety of broadcasting aural
programs that may originate from radio stations’ own studios through an affiliated network or
from external sources (United States Census Bureau, 2012c).
Industry characteristics
The radio broadcasting industry has some specific characteristics regarding intensified
media competition, industry consolidation, and operating efficiency. New competitors, such as
Pandora and Spotify, that use online technologies to stream their content, decreased the number
of radio listeners, and the rate keeps declining throughout time. To keep up with new industry
players, the radio broadcasting companies invest into a radio data system (RDS), which helps to
identify specific information about the radio station such as its name, type of music, traffic
announcements, radio text, clock time, and emergency alerts (Petrillo, 2016).
For the radio broadcasting industry, the major players try to consolidate their local and
national radio stations. Consolidation is the act of cutting unnecessary pieces of the business to
lower costs. For the radio broadcasting industry, removing certain local and national radio
stations lowers overall costs by decreasing the number of sales teams and equipment (Petrillo,
2016).
The industry struggles in terms of its operating efficiency affecting its profitability. The
main reason is a decline in advertising revenue because advertising agencies prefer to advertise
their content through online services because they reach a larger consumer base. Thus, the major
players are trying to restructure their business models to compete with online broadcasters
(Petrillo, 2016). Radio Broadcasting Industry 7 Industry life cycle
The radio broadcasting industry is in a declining stage of life cycle. According to
IBISWorld, the industry was experiencing a constant decline in revenues over the past five years.
The decline in revenues is a result of competition from external companies of the industry such
as online broadcasters, music streaming services, and podcasts (Petrillo, 2016). Also, new
technologies intensify the situation because people prefer to use MP3s and smartphones to
stream desired channels instead of using traditional radio like they used to. Additionally, the
decline in advertising revenues significantly affects the companies’ profitability.
Driving forces
Due to decreases in advertising expenditures, the radio broadcasting companies became
vulnerable to external industry competitors. The increasing number of online broadcasters, music
streaming services, and podcasts have drawn consumers away from listening to the traditional
radio. Also, the total time spent in vehicles decreased over the years, as a result the companies
need to look for other mediums to reach their consumer base (Petrillo, 2016).
General Environment
The general environment discusses the macro environmental factors related to the radio
broadcasting industry such as political, economic, sociocultural, technological, environmental,
and legal. These environmental factors are typically out of the control of the industry’s players;
however, competitors should be aware of them and act accordingly.
Political/Legal
The Federal Communications Commission (FCC) monitors the companies regarding
proper use of radio frequencies (signals), licenses, and content. The FCC also has the power to Radio Broadcasting Industry 8 penalize the companies if they do not follow FCC regulations. Additionally, the FCC prohibits
“cross-ownership of other forms of media” (Petrillo, 2016). Furthermore, the
Telecommunications Act of 1996 excluded the limitation on the number of owned radio stations
by one entity; however, there is still a limitation on the number of entities that could be owned by
a particular company within a specific market segment (FCC, 2014).
Economic
The shift of advertising agencies from radio to online services has hurt the industry’s
profitability as the companies’ main profits come from advertising time. Furthermore, the
decrease of advertising is directly proportional to the advertising companies’ GDP performance.
Depending on how well these companies perform, the advertising budget will vary because
companies spend more during a strong economy as compared to a weak economy. Due to a
decrease of advertising, the companies decided to consolidate their local and national radio
stations to increase its operating efficiency causing an increase in unemployment within the
industry (Petrillo, 2016).
Sociocultural
Decreasing total vehicle miles and demanding consumer base that desires a different
variety of content within a short period of time make capturing listeners to their radio broadcasts
difficult. Also, with new technologies allowing quicker access to desirable content with no
advertisements for a considerable fee, listeners can create their music libraries to listen to and
search the content they are looking for through the Internet services. Technological advances
from external industries have drawn away the consumers’ attention and have kept intensifying
competition for the radio broadcasting companies (Petrillo, 2016). Radio Broadcasting Industry 9 Technological
The industry improved its standard of quality. The companies use digital and HD quality,
and move toward satellite radio streaming by providing subscription fees to consumers to access
more data and have more options compared to terrestrial radio broadcasting. Also, the companies
adopted a radio data system (RDS) that upgraded radio’s capabilities and improved consumers’
experience. However, external technological advances also reach a large consumer segment that
allow consumers to access the content broadcasted on radio faster, or find alternative sources that
provide similar content (Petrillo, 2016).
Environmental
The radio broadcasting companies build tall radio towers to transmit the signals over long
distances. Whether these radio towers harm the environment was always a concern for the
people. The companies place these large towers majorly in isolated environments, which could
disrupt the surrounding ecology. Therefore, the FCC conducted a project to evaluate the effects
of radio frequency exposure. In 2013, the FCC announced that radio towers did not have any
significant impacts on health or environment, making radio towers safe for the public; however,
with new technological advances, this research might become irrelevant (Zoll, 2015).
Porter’s Five Forces
The Porter’s Five Forces analyze the competitive nature of the industry. The forces used
to analyze the industry are competitors’ rivalry, power of the buyers, power of suppliers, threat of
new entrants, and threat of substitutes. By understanding these factors, companies can find their
competitive advantages within the industry. Radio Broadcasting Industry 10 The Competitors’ Rivalry
The competitors’ rivalry is moderate to high. The four dominating companies within the
industry have approximately 59% of market shares, making them the dominating force of the
industry. Because of the market share, these companies are able to negotiate major advertising
deals and expand operations for better equipment. As for the local and small radio stations, they
struggle to get sponsorships and deals (Petrillo, 2016).
Power of the Buyers
The power of buyers is low. There is a heavy traffic of customers, and individually
customers do not have any impact on radio broadcasters. However, due to consumers having a
variety of services and substitutes to choose from such as Internet services, MP3s, music
streaming services, and podcasts, radio broadcast stations need to improve their services to
attract and retain their consumer base. The switching costs between competitors is low, but
consumer base tends to be pretty loyal to the radio broadcaster as long as it satisfies its needs are
satisfied (Petrillo, 2016).
Power of the Supplies
The power of suppliers is high. There are multiple suppliers for the radio broadcasting
companies depending on the content they sell. For instance, a record label has a variety of
services to spread their products, and radio broadcasting is one form of presenting the content.
Therefore, radio broadcasting stations have no control over their suppliers since the suppliers can
choose to use a different platform to promote their content. With advancements in new
technology, radio broadcasters lost their promoting power (Petrillo, 2016). Radio Broadcasting Industry 11 Threat of New Entrants
The threat of new entrants is low to moderate. Firstly, one of the main barriers is the
Federal Communications Commission (FCC) that requires licenses to transmit the radio signal.
Also, the FCC limits the number of radio broadcasting licenses because radio frequencies are
sparse. Furthermore, the Telecommunications Act strictly regulates where radio broadcasters can
broadcast from and that location of their towers does not interfere with existing technologies
(Petrillo, 2016).
Threat of Substitutes
The threat of substitutes is high. New technologies allow external companies to enter the
radio broadcasting industry without following the industry’s regulations. For instance, music
streaming services such as Spotify and Pandora stream their content to consumers using mobile
devices and allowing consumers to choose the desirable music stations according to their
preferences (Petrillo, 2016).
The number of radio broadcasting stations
Cumulus Media Inc. owns 454 stations broadcasting in 90 US media markets, and
manages more than 8,200 broadcast radio stations through Westwood One network and other
digital channels reaching to approximately 245 million people each week (Cumulus Media Inc.,
2015c). Big geographical coverage allows the company to attract and to provide services to
advertisers and satisfy listeners because of national reach and local influence (Cumulus Media
Inc., 2015c). It is a valuable, rare, and hard-to-imitate resource due to large capital investments
and large scale. The resource is well organized to capture value, bringing a sustainable
competitive advantage to the company. Radio Broadcasting Industry 12 Portfolio growth through strategic acquisitions
Cumulus Media Inc. is the second largest radio broadcasting company in the United
States. The company operated 454 stations across 90 media markets, and has its presence in eight
of the top ten radio markets. In 2011, Cumulus made a major deal by acquiring Citadel
Broadcasting Corporation (CBC) for $2.3 billion. There were some major station brands such as
NBC Blue, ABC Radio and ESPN Radio Network under CBC with over 230 owned radio
broadcasting stations, 4,400 affiliate radio stations, and approximately 180 online streaming
websites and podcasts (Petrillo, 2016). Additionally, Cumulus acquired and merged with
Westwood One network in 2013 after selling 54 radio stations to Townsquare Media, LLC for
$235 million in cash the same year (Cumulus Media Inc., 2015c). Cumulus also swapped 15
stations in small and mid-size markets in exchange for five radio stations in Fresno, California
(Cumulus Media Inc., 2015c).
Portfolio growth through acquisitions is highly valuable for Cumulus and well organized
to exploit. However, it is not rare within the industry and not difficult to imitate for top players;
but, as it requires large capital investments, it can be hard to imitate for new entrants. Because of
these reasons, this resource is a competitive parity with the potential to become a sustainable
competitive advantage in the future.
Ownership of FCC licenses
To own the broadcasting station, any company has to acquire an FCC license. FCC
restricts the number of owned entities within particular markets and requires companies to follow
specific rules regarding broadcast frequencies, use of equipment, streaming content and other
policies that affect companies’ operations (Cumulus Media Inc., 2015c). FCC imposes fees and
penalties for violation of its rules. However, existence of FCC also restricts the amount of new Radio Broadcasting Industry 13 entrants and limits the number of stations competitors can own, a fact which brings some
benefits to already established companies like Cumulus (Cumulus Media Inc., 2015c). Therefore,
this resource is valuable, difficult to imitate, and organized well to exploit, but not rare as other
big players within the industry have FCC licenses as well, making this resource a temporary
competitive advantage.
New technological platforms
New technologies keep entering the market, intensifying the competition as well as
enhancing companies’ performance. Consumers started slowly adapting to new technologies,
finding new alternatives to the radio. Therefore, it is significant for the companies to keep up
with new technological advances because those resources bring value, are rare as markets only
beginning to adopt them, and are well-organized to exploit. These resources are not difficult to
imitate, but are costly to implement. Therefore, new technological platforms bring temporary
competitive advantage to the company (Cumulus Media Inc., 2015c).
Highly skilled workforce
Senior management team of the company has to have required skills to lead the company
towards success. Therefore, it is important to have a highly skilled workforce to manage the
company toward right direction. Also, it is significant for radio stations to hire competent hosts,
who can attract listeners and advertisers to the radio channel. Skilled workforce brings value and
rarity to the company.
No comments:
Post a Comment