The Fashion Channel Essay

530 WordsOct 22, 20113 Pages
The Fashion Channel Problem Definition: The Fashion Channel (TFC) had been successful for many years under “Fashion for everyone” strategy until TCF has faced a competition from both CNN and Lifetime, which started to launch fashion programs. The core problem is that TFC does not have a segmentation strategy that is urgently required to counter the aggressive competition from both CNN and Lifetime, which are attracting more viewers than TFC does and targeting the most appealing segments for advertisers. As a result, TFC is more likely to have declines in its revenue as long as there is no effective segmentation strategy that is needed to intensify its competitive position. External Situation Analysis: 1- Cable Network Industry: The revenue for network channels come from advertising sales and cable affiliation fees. In this industry, advertising sales are major opportunity for TFC to increase its revenue since there is limitation to increase the cable affiliation fees. 2- Market Share: TFC has a market share of 80 million out of 110 million total households in the U.S. The pretty high number of subscribers to the cable televisions are automatically subscribing to TFC without any extra fees which allowing TFC to reach them. 3- Competitors: TFC is working in a highly competitive environment. The biggest competitors for TFC are CNN and Lifetime, which are taking advantages of what TFC has already done, also they have created their segmentation strategy and taking over TFC viewers and advertisers. There is a potential danger from the competition of other network channels as well. 4- Customers behavior: TFC’ customers are advertisers and viewers. Advertisers are interested in ratings and demographics of network viewers, so their CPM depends on that. While TFC’s viewers are the subscribers to cable operators, who are mainly women from 35-54, however, they are

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