Viacom SWOT Essay

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Viacom Case Study I found it interesting that Viacom has purchased so many businesses that it became too big to maintain strategy for all subsidiaries. Some parts of the company were growing quickly while others were losing money. I also found it interesting the amount of changes experienced in the industry from deregulation to emerging technologies. Viacom’s strategic issue is to maintain its’ status as a viable competitor to the Cable TV and Broadcast Network and to competitors from emerging markets. Strengths A great resource for Viacom is their broad demographic customer base and their capability to bring them entertainment. Viacom achieves this via license ownership, innovative programs, acquisition of businesses, radio, and movies. The networks owned by Viacom, such as MTV, Nickelodeon, and Lifetime, are able to create programs demanded and have instant appeal to their audiences. These resources allow Viacom to target almost every age group on many continents. Advertisers can rely on these networks to reach their target audience. Ownership of programming, radio and movies opens Viacom to revenue streams from the different industries their businesses are involved. Weaknesses The resources of Viacom have come at a high cost. This leads to high debt load and lower profit margins. The corporation has been unable to leverage competencies across subsidiaries. This was attempted by acquiring Blockbuster and Paramount. Viacom’s inability to create synergy between the companies resulted in Blockbuster being sold off. Management seems to have always been strength to Viacom but now it is a liability. The majority owner and mastermind behind the company Sumner M. Redstone, is too frugal. He attempts to achieve a low cost structure yet demands a localization strategy in many markets. He seems willing to fire any CEO who does not fulfill this mission,

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