Course: Strategic Management
Instructor: Prof. ZHANG haiyan
Prof. ZHENG Xin
Homework: Finish a detailed individual report of industry analysis (by using 5 forces)
The television industry in Italy
The television market in Italy has a value of over 10 billion Euros and can be splitted into
three segments: “advertising”, “TV subscription” and “TV Licensing & public funds”. For
each section matches operating dynamics very different between them. In Table 2 I have
chosen only the first section that represents for me the main relevant market.
The segment of advertising is the most lucrative with almost 50% of total revenues. The
following are the TV subscriptions with a share of 35%.
Estimates from 2011 to 2016 register a market growth rate equal to 1.9% (Table 4).
TV advertising is leading industry revenues. The power of suppliers of advertising depends
on the quality of the content, measured in the Italian market by Auditel. There was a
decline in pay TV subscriptions due to the spread of legal and illegal downloading of TV
products.
The television industry in Italy and its trend
People from 6 years old upwards who watch television (data are on a range of 100 people
of the same sex and age):
Analyzing the data on the number of viewers in Italy the trend is negative, but by
analyzing the percentages is possible to notice that almost all the Italians, over 6 years old,
watch television regularly.
The demand, even though decreasing slightly, is still substantial. For the next few years is
