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iRadio: A Strategic Review
Transcript of iRadio: A Strategic Review
iRadio is a regional radio station based in Athlone in the republic of Ireland.
It broadcasts to the North- West , North-East, Midlands and West of the country.
It is one of the 4 youth orientated stations that were licensed by the Broadcasting Authority of Ireland to challenge the monopoly in the 25-43 age category by national stations such as RTE 2FM and Today FM.
It was first aired in Feb 2008.
In 2011 i102-104 and i105-107 merged to become one iRadio entity causing iRadio in Galway to be closed. Both stations remain separate but have identical content apart from certain weekday slots.
Broadcasts to 15 counties between the frequencies of 102.1 MHz and 104.7 MHz in the North-West region and 104.7 MHz and 106.7 MHz in the North- East.
It offers online streaming.
Airs a mixture of hit music, showbiz stories, news, entertainment shows and also shows through Irish.
"To create the country's most innovative and interactive radio station that is fresh, youthful, first to have all the latest showbiz news and is the regions leading radio station for the 15- 34 age category".
iRadio will provide a high quality regional radio service incorporating the best of current music trends, current showbiz news, competitions and entertainment.
To operate as a regional radio station following the policies and procedures set out by the Broadcasting Authority of Ireland.
To broadcast shows designed to serve the needs and wants of listeners that are not currently being served by other broadcast media.
To grow our market share by attracting new listeners.
To seek to stimulate and entertain our target audience.
To provide award winning creative advertising solutions and customer service for our advertisers.
To be the leading radio station to adapt to diversity and change in modern Ireland.
To overall achieve excellence and outstanding performance.
are iRISE with Louise Clark, iWAKEUP with Cooper and Oonagh, iWORK with Simon Murdoch and iGOHOME with Fergal Darcy.
Other shows include:
iRL & Rush Hour with Barbara Nic Dhonnacha, iTAKEOVER with Mark Cunning, THE CRACKED i with Chris & Ciara, CEOL i RITH NA HOICHE with Michaela Hayes and SATURDAY NIGHT i with Hazel Flemming.
Stephan Daly, Lisa Brady, Ezeke Grey, Mariam Mahar and Dave O'Connor.
Broadcast a wide variety of shows to cater for different segments of the target audience.
Identify the target audience for each show.
Recruit experienced presenters with the right personalities geared towards iRadio shows.
Create the optimal format for each show.
Assign the appropriate presenter to a specific show.
Create new innovative ideas for shows & competitions.
To stay connected to our audience through social media & new technologies.
To broadcast 24/7.
A Strategic Review
Presented By: Rachael Shaw (G00270566)
Geneci Cruz (G00278919)
Karen Kelly (G00279826)
CEO : Deborah Fagan
Chief Elements of Strategy
iRadio use both prescriptive and emergent strategies together in order to design a differentiated strategic action plan. Given the continuous changes in technology iRadio uses an emergent strategy to adapt to new technologies which have a direct impact in the industry, for example they have created a party app, iRadio on android and iPhone and future proofing iRadio through digitization.
Their target market is 15- 34 age bracket.
Slogan "Music is i".
Aim is to provide listeners with a variety of news, music, information, showbiz and entertainment shows when ever they want to listen in what ever format they choose.
To provide listeners with the opportunity to have an input into the shows such as selecting music to play, competitions etc. For example they provide i REQUEST LIVE on their website.
To be the most listened to radio station while in a car.
To be Ireland's most cost effective regional radio station.
To be the number 1 regional radio station to place advertisements.
To continue to promote the station through innovative and creative branding and promotional techniques for example iRadio host a range of promotional ideas such as Smashing Pumpkins Festival , iPARTIES, iSCHOOL RUN, iROCK along with their in show competitions.
Tools for Analyzing iRadio's External Environment
Porters 5 Forces Analysis
Strategic Group Mapping
Key Success Factors (KSF'S)
Invented by Francis J. Aguilar in 1967.
A PESTEL Analysis is a popular tool which allows managers to scan the external environment in order to identify the key environmental variables that have a direct impact on the company.
Once this has being completed the company can adapt their strategy as needs be.
The 6 variables for PESTEL analysis are:
Political & Legal
The Broadcasting Authority of Ireland: The Broadcasting act 2009
General and Children's Commercial Communications Code.
Code of Programme Standards.
Code of Fairness, Impartiality & Objectivity in News and Current Affairs.
Referenda Coverage Guidelines.
Right of Reply Scheme.
Rules on Advertising & Teleshopping.
ODAS Code of Conduct for Media Service Providers of on Demand Audio Visual Media Services.
Political & Legal Continued...
Irish Music Rights Organization
Protects/Promotes and develops the collection and distribution of all royalties.
Communications Act 2003.
Laws Regarding Monopolies.
The Constitution Article 40 regarding the right to freedom of expression.
Home Economy Situation
Recession leading to less disposable income
Costs of advertising are high in comparison to newspapers or the internet.
Promotions & Sponsorship
High caliber/ status businesses such as Vodafone are now sponsoring iRadio and also specific shows.
Social networking offering free advertising that iRadio can capitalize on.
Tax on profits.
Lifestyle Trends & Media Views
Listening to the radio through different mediums such as Mp3 Players, iPhones & Androids, online streaming and also Apps and podcasts.
Commuting for longer periods, people are locked into listening to the radio for longer periods of time.
In a commercial setting playing the radio is the optimal choice over TV.
A lot of people are emigrating and as a result these people may want to keep up to date with home news on iRadio.
There has been a significant increases in population.
Ethnic/ Religious Factors
Society today has transformed into a multi-cultural society.
Advertising & Publicity
Major changes in the way in which information is received for example social media allowing for improved connection to the target audience.
Apps, Podcasts, Mp3 Players, online streaming, listening to the radio through smart phones and social media such a Facebook & Twitter.
People can access the radio through mediums such as television.
The transformation from analog to digital signals within the industry.
Energy consumption controls
Radio signal interference
Porter’s Competitive Five Forces
Porter’s Five Forces model is another key analytical tool used to identify the main sources of competitive forces and their strengths.
The tool identifies 'How competitive forces shape strategy'.
The five competitive forces are:
• Threat of New Entry
• Threat of Substitute Products
• Bargaining Power of suppliers
• Bargaining Power of Buyers
Spin South West
RTE Radio 1
Raidio Na Gaeltachta
- Midlands 103 FM
- East Cost FM
- Tipp FM
- Galway Bay FM
- Shannon Side FM
• Piracy Radio stations, the majority play just music.
The threat of Rivalry is very high, given that the majority of radio stations can be accessed through the internet.
The threat is low.
The start up cost for original radio station is extremely high.
The amount of capital required in the running of a radio station is also substantially high. e.g. Upgrading and maintaining equipment.
Barriers to entry is high as set out by the Broadcasting Authority of Ireland, which is a legal governing body.
Other radio stations
CD / DVDs
Switching costs are minimal and the audience view all the above as been highly comparable and in some cases even better.
The bargaining power is high.
iRadio is highly dependent on the music industry and music can be played on a wide variety of different radio stations, making their bargaining power insignificant.
Popular presenters that have valuable skills and experiences have the opportunities to work for a large number of other radio stations.
Keys suppliers or sponsorship have choices with regarding to promoting their company over a variety of radio stations.
Suppliers of digital technology have very high bargaining power in the industry.
The bargaining power is high.
The audience can switch to another radio station with no switching cost involved.
The quality and access of information/entertainment available to buyers has improved through the social networking and the internet.
Other business companies can choose to advertise their products through other popular media such as internet and newspapers which is a lot cheaper.
Strategic Group Mapping
It is a technique used to identify different competitive position.
It looks at competitive characteristics that rivals have in common, e.g.
Similar price / quality range.
Emphasis same distribution channels.
Covers the same geographic area.
Offers listeners similar services.
Use of identical technological approaches.
Strategic Group Mapping by: No. of Listeners and Age
Strategic Group Mapping by: No. of Listeners / Day and No. of Shows / Day
NUMBER OF LISTENERS
NUMBER OF LISTENERS
NUMBER OF SHOWS
Listeners & Shows
iRadio - 60.4 8
Beat 102 - 103 - 36.3 10
Spin SW - 33.4 5
Today FM - 25.3 10
Red FM - 24.6 7
Spin 1038 - 23.7 7
Newstalk - 6.9 5
Key Success Factors
KSFs are the competitive factors most affecting Industry members’ ability to prosper. In order for a company to be successful they must have at a minimum the key success factors.
It looks at:
Specific strategic elements.
KSFs for Radio
Strong Distribution Channels such as:
Internet and smart phones.
A variety of dynamic, exciting and entertaining shows.
Strong supplier network in order to get the latest news, music and entertainment.
Hire and retain popular presenters with valuable skills and experience to increase customers satisfaction.
Product differentiation such as; youthful radio station.
Time to market:
Service / Information delivered instant.
Modern Digitized Technology
Substantial amount of capital to cover running costs.
The tools that we will use to analyse the micro environment are:
Resource Audit: Ms Model
Value Chain analysis
Competitive Strength Assessment
• The swot analysis stands for:
Strengths and weaknesses (Internal Environment)
Opportunities and threats (External Environment)
They have fun, exciting and dynamic presenters for example Cooper and Oonagh’s iWAKEUP and Fergal D’Arcy's iGOHOME.
Stronger resource pool due the merger of i102-104 with i105-107.
High spec studio and state of the art digital technologies.
According to the latest statistics iRadio is the number one station across the west of Ireland for all adults.
Excels in excellence given that they have won 6 radio advertising awards, 11 PPI awards (Oscars for Radio) along with various other awards.
Live streaming and podcasts.
Strengths Continued .....
Strong brand and marketable name on all of their shows for example iRISE, iTAKEOVER and iWORK.
They have strong connection with community through their iNETWORK where you can keep up to date with all the latest charity and social events in iLAND.
They have competitive advantage through their contemporary fresh and youthful image.
A wide variety of creative promotional events such as iROCKS in conjunction with the best live music venue in the country Monroe’s Live, Galway (a singing competition to assist new talent to break into the music industry) and iPARTY.
Attractive prizes and giveaways.
Among presenters there is a balanced male to female ratio.
Up to date with the latest social media such as Facebook, Twitter and Pinterest.
A wide coverage area reaching over 330,000 listeners.
A company must capitalise on it's strengths, identify their weaknesses and allocate resources to them in order to improve on them.
A company must also identify the opportunities available to them and take advantage of them while also recognising potential threats and eliminating them as much as possible.
Poor website design in terms of:
Lack of company information.
Over crowed pages with too many advertisements.
Clash of colour.
No visual support.
iRadio gears shows to only English and a small portion of Irish speakers.
Large amount of bandwidth required.
Break down of communication due to listeners changing channels.
Very little differentiation in types of music being aired.
Developments in technology – e.g. DAB (Digital Audio Broadcasting).
Diversity in the culture and increase in population allows for potential increase in market share and listenership.
People are commuting for longer so there is an opportunity to lock in listeners for longer periods.
Potential collaboration with university and college campuses.
Huge scope for innovative ideas.
Developments in social media technologies leads to an increase in followership and free advertisement for iRadio, reducing overall costs.
Capitalising on the emigration to foreign countries means that people may want to keep up to date with home news and entertainment on iRadio.
National influence could become regional/show topics of interest.
Expand in marketing through increased advertising for other companies.
Business and product development – e.g. new apps.
• Resource Audit involves identifying the wide variety of resources a company has. These resources are analysed and assessed and can be either human, financial and material resources. It is essential to identify the company’s unique resources which are better than those of competitors and that are difficult to imitate.
• The tool that is used to access the company’s resources is the Ms model.
• Public service broadcasting charge on all devices that pick up public information will come into force in 2014.
• The introduction of more entertaining shows from rival radio stations.
• More rigorous regulations set out by the Broadcasting Authority of Ireland.
• The current economic climate, less disposable income and less revenue coming in from other businesses wanting to advertise with iRadio.
• Environmental Effects such as the strength of the signal in relation to geographic regions which can be interfered with by atmospheric conditions.
• High cost of keeping up to date with new technologies can be seen as a threat.
• Although the threat of new entrants into the industry is low the threat is still relevant.
- Hi-tech equipment used to broadcast the radio station, the maintenance and replacement cost for this type of technology is extremely high.
– the culture of the organisation is relaxed and fun-loving. There is a strong bond and friendship between the presenters of the different show. Promotion of community charitable events.
– members of management are highly skilled in the broadcasting area. Staff loyalty is apparent. There is a good structural management in place such as CEO, iRadio Group Director, Assistant Programme Director/Head of Music, Head of Creative Services.
– high followership in the regional market due to loyal listeners.
Men and Women
– iRadio have a tremendous balance between male and female presenters.
Value Chain Activities for iRadio
Competitive Strength Assesment
It’s a tool used to analyse the competitive strength of a company against their rivals. It involves rating a firm and its key rivals on each KSF using a rating scale 1 -10. 1 being very weak, 5 being average and 10 being very strong. Overall it identifies the competitive position of a firm in relation to its rivals indicating potential competitive advantages and disadvantages.
Value Chain Analysis
This is an analysis of all the activities carried out by a company. It identifies the company’s internal cost structure which can be used as a comparison from that of rival companies.
There are two types of activities within the Value Chain analysis which are:
Operation of radio station technologies.
Promoting the shows through events and institutions such as colleges.
Hiring fun, creative presenters with the right personalities.
Training, maintenance and upgrading of technologies.
Build a strong brand and good reputation.
Licensing, insurance, Accounting .
Site selection and construction.
• Benchmarking looks at cross–company comparisons of how certain activities are performed and the costs associated with these activities. It is about looking at the best companies in the industry and analysing how they perform activities at a low cost and trying to imitate these activities in order to improve cost competitiveness.
• iRadio would benchmark against Today FM.
Description iRadio Spin Southwest
Variety of dynamic, exciting and entertaining shows.
Strong Supplier network.
Strong distribution channel.
Hire and retain popular presenters with valuable skills.
Total 50/60 41/60
Revamp the website to make it more attractive to the target audience and make it easier to locate information.
• iRadio needs to introduce programs that are presented through a wider variety of languages to cater to Ireland's multi-cultural society.
• Allow listeners to watch live shows through a video feed.
• To continue to generate creative and innovative marketing ideas for shows.
In terms of profits the industry is very attractive, however the initial investment is very high and therefore the threat of new entrants is low.
The threat of rivalry is very high and the competition for substitute products is also high and the bargaining power of buyers/suppliers is also very high.
In order to be successful in this industry it’s critical to not only to meet the key success factors but to also capitalise on each of them.
With currently over 330,000 listeners per week, iRadio have gone from strength to strength and have acquired many rewards due to their "Excellency" in the industry.
The Competition for substitute products is very high