Fiji Television Limited (Fiji TV) has lost major market share of advertising clients to Fiji Broadcasting Corporation's (FBC) new television station. Fiji TV conducted an analysis to develop a strategic plan to regain market share over the next 5 years. The plan includes improving compelling content, regional expansion, partnerships for new technologies like IPTV and mobile apps, and supporting national electrification to increase viewers. The goal is for Fiji TV to regain over 60% of the market share.

1. “Always Something Good to Come Home To!”
MBA-440 Strategic Management Group F November 2014

2. Josese Turagava
S95007912
Shivandhna Rani
S02000886
Anil Senewiratne
S11095516
Taniela Matakibau
S83411330
Stuart Gow
S11100919

3. Scope
Executive Team
Fiji TV – The Company
Problem Statement
Market Analysis
Internal Analysis
External Macro Analysis
Competitive Analysis
Strategic Options
Strategic Recommendations
Short, Medium, Long Term

4. Fiji Television Limited
SPSE: FTV

5. Fiji Television Limited
Fiji's main television network
SPSE: FTV
Founded 1994, Listed 1996
Owns:
Fiji One (free to air)
Sky Pacific (pay TV)
Media Niugini Limited (EM-TV in PNG)
Main shareholders
Fijian Holdings Limited (shares from Yasana Holdings Ltd)
Hari Punja & Sons Limited

7. Problem Statement
Fiji TV's free-to-air station Fiji One has
lost major market share of their
advertising clients to a new station in the
Fiji free-to-air television market in 2013-
2014 launched by Fiji broadcasting
Company and backed and funded by the
Fiji Government.
How to regain market share and counter
attack FBC’s strategies is the problem to be
addressed

8. Problem Statement cont.
Loss of
Market Share
of Ads
FBC now
major player
How to regain
market share?

10. Background
20 years monopoly
Was Govt owned, not
now
Also owns Sky Pacific
satellite pay-TV
Listed on SPSE
FHL major shareholder

11. Fiji Broadcasting Corporation (FBC)
Core business -
radio broadcaster
Own 6 radio
stations
launched FBC TV -
November 2011
Now Govt funded
$3.5M annually

13. 2014 Market Share
FBC
44%
Both Fiji ONE
and FBC
2%
MAI TV
1%
SKY
2%
Fiji ONE
34%
Other
17%

14. SWOT Analysis
TOWS Matrix

15. TOWS Matrix
INTERNAL
EXTERNAL
Strengths
Internal
1. Satellite TV
2. In-house Tech/IT
3. SPSE
Weaknesses
1. Bad Content
2. Bad coverage North
3. Low Govt Support
Opportunities
1. Larger Audience
2. Internet/online
3. SPSE/Capital
SO
3/2 Launch IPTV
2/1 Expand
audience/eyeballs
WO
¼ Get capital for new
programs
2/3 Better Coverage in
North
Threats
1. Licensing
2. FBC Govt Support
3. Radio FBC
ST
1/1 Lobby for longer
licence
3/2 Package satellite
advertising with TV
WT
2/2 Avoid confrontation
with Govt
External

16. SO Strength/Opportunities
Launch IPTV
Use tech/IT skills
First to Market
Expand audience/
eyeballs
Use satellite
coverage
Leverage capital

17. ST Strengths/Threats
Lobby for longer
licence
Main threat is
licencing
Use Govt contacts
Package satellite
advertising with TV
Expand offering to
negate radio add-on

18. WO Weakness/Opportunities
Get capital for new
programs
Utilise SPSE/FHL
Upgrade better content
Better Coverage in North
Use satellite
Get more viewers

19. WT Weakness/Threats
Avoid confrontation
with Govt
Weak position
Use alternate
methods/
approaches

21. Value Chain Analysis

22. Supply Chain Management
Improve
Content Procurement
Programming
Purchasing Power
Exclusivity

23. Operations
Improve
New satellite
Wider coverage
More homes
More TV’s

24. Distribution
Improve
Geographic Satellite
Coverage
More Electricity
coverage
More TV-Top Boxes

25. Service
Improve
In house production
Advertiser Support

26. Support Activities
R&D Tech HRM
Invest in
IPTV
Mobile Ap
Internet expansion
Invest in
Staff education
Executive MBA’s

27. Macro- Environmental Analysis
PESTEL Analysis

28. Political Factors
Quite tough for Fiji TV since 2003
Political environment quite
volatile
Military coup in 2006
= gagging of the media
Government sold out ALL their
shares to Hari Punja 2012
FBC hires brother of the AG as
CEO

29. Economic Factors
Post- election & democracy back
Commonwealth acceptance
More positive economic growth
Projected GDP growth 3.8%
More bilateral agreements with China,
India, Australia, New Zealand and EU &
USA
Fiji’s economy will boom

30. Economic Factors cont.
Investors and business are
more confident in
investing
Businesses will spend
more on ads & promos
Standard of living increase
= more TV’s
Good loan interest rates
under the FHL banner

31. Socio-Cultural Factors
Important role in channel
& programme choice:
Demographic factors
Lifestyle factors
Culture factors
More family & educational
programmes
High literacy =
parents more involved in kid’s lives
very particular what kids watch on TV

32. Socio-Cultural Factors cont.
Kids more towards
Computers
X-Box
internet
Offer different to attract
the kids of today
Proper mix of
sports
current affairs
entertainment
educational

33. Technological Factors
4G mobile coverage of
98% of Fiji
New satellite more
regional coverage
More and better TV’s in
homes
More Sat TV-Top boxes
More tech savvy
population

34. Environmental Factors
Natural Disasters
Cyclones
Floods
Damaging :
TV stations
Repeaters
Power outages

35. Legal Factors
Regulation to share
sports events
Currently viewed via
Terrestrial Signal
All covered by law
domestically

36. Regulatory Factors
Non-Renewal of License
Only 6 months
renewal on going
Govt controlled
Operations could be
suspended if license
is not renewed

37. Competitive Landscape
Porter’s 5 Forces Analysis

38. Competitive Landscape
Dominated by the
2 main stations in
the Free to Air
television station
market place
1. Fiji ONE
2. FBC

39. Porters 5 Forces

40. Supplier Power - Medium
Good relationship with
suppliers
BBC
TVNZ
Fox channels
Sporting Channels
(IRB and EPL)
Others

41. Supplier Power - Medium
Channels sell direct
Exclusively to Fiji
ONE
The contracts are
annual
Could change at
that review time

42. Supplier Power cont.
Loss of key content
Lost these exclusive
programs:
EPL
IRB

43. Buyer Power - High
Top Advertisers
Courts Fiji Ltd
Vodafone Fiji Ltd
Digicel Fiji Ltd
MH Supermarkets
FMF Brands
Car Dealers (Asco, Shreedar,
Vision Motors, Carpenters)
CJ Patel (Colgate-Palmolive)
Vinod Patel Hardware
TOTAL
RC Manubhai

44. Threat of Substitute- Medium
Top 3 substitutes
Radio Advertising
Print Advertising
Online-Internet
advertising

45. New Entrants - Medium
Originally the threat of
new entrants was low
Proved false by the entry
of 2 new competitors
into the market place in
the last 5 years.
There is a real genuine
threat for a new
company to compete in
this market

46. Competitive Rivalry - High
Intense competition
from FBC
FBC taken over as
the market share
leader in 2014 at
44%
Follower a weak Mai
TV with only 1%.
FBC
44%
MAI TV
1%
Fiji ONE
34%

47. Anoff ’s 9 Cell Matrix

48. Ansoff Matrix
Existing Similar
New Product
Development
Existing
Penetration
• North Fiji
Similar
• Upsell Free to
Sat
Integration Hor.
• IPTV
• Mobile App
Similar
Integration Vert
• Regional Sat.
Conc. Div. Conc. Div.
New Market
Development
New Market Dev
• Solomons
• PICS
Conc. Div.
• Radio in Tonga
Congl. Div
• Mobile App
• Start Alliance
Products
Markets

50. Strategic Mission
Fiji TV to regain viewer numbers and
market share above 60% to attract
the advertising clients back to Fiji
TV as the PRIME television
advertising platform

51. Overall Strategy
Broad
Differentiation
First to Market
IPTV
Mobile App
Blue Ocean
New Markets
New Products

52. Next 12 months

53. Compelling content
“Always something
good to come home
to”
Ensure content is
fresh & new
Avoid re-runs where
possible on Free to air
FBC TV re-runs already
run by Fiji TV & Sky
Pacific

54. Sporting Events
Don’t rely on Sport
Use Regional &
International reach

55. Next 2 Years

56. Paid Satellite TV
Always have Fiji TV
available to all
subscribers
Regardless if they have
paid their
subscriptions or not
If they don't pay, don't
cut off Fiji TV...

57. Packaged Advertising
Package advertising
on Sky TV and Fiji
TV
For all viewers to see
Competition can’t
do it!

58. Within 5 years

59. IPTV
Joint Venture/Strategic
Alliance with
Digicel
Vodafone
First to Market IPTV in
region
Go Regional all at once!

60. Mobile App
Develop new APP
Complimentary
product to IPTV
Partnership
already

61. Electrification of Country
Support electrification
of country to allow
more TV's to run!
Support solar/wind to
encourage
sustainability

62. Live Streaming
New technology
High demand for
online content
Examples:
YouTube
Netflix
Hulu
Amazon

64. Strategic planning
Reviewed
annually
3 years
cycle is
continuing

65. Customer Retention
Feedback from
advertisers
Feedback from
viewers
In-house
creative team

66. Satellite
Upgrades to
newer systems
Better systems
Satellite

68. Tools Used
SWOT
TOWS Matrix
Value Chain Analysis
PESTEL (R)
Porters 5 Forces
Ansoff ’sMatrix
Linear Creativity
Technique
Forced Field Analysis

70. References
Fiji TV Annual Reports 2008 -2014, Fiji Television Group, June 2014
Clarus Research Group. (2014). Fiji Media Survey Report April-May 2014. Suva:
Government of Fiji.
Fiji Bureau of Statistics. (2007). 2007 Census of Population. Retrieved from Fiji
Bureau of Statistics: http://www.statsfiji.gov.fj/index.php/2007-census-of-population
Fiji Government. (2013, November 11). 2013 Fiji National Budget Announcement.
Retrieved from Fiji Government Online Portal: http://www.fiji.gov.fj/Media-
Center/Speeches/2014-NATIONAL-BUDGET-ANNOUNCEMENT.aspx
Fiji Government. (2014, May 29). Television (Cross-Carriage of Designated
Events) Decree 2014. Retrieved from Fiji Government Online Portal:
http://www.fiji.gov.fj/getattachment/133c52f7-9323-4dea-aab7-
ae7b8f444bcb/Decree-No-19---Television-(Cross-Carriage-of-Desig.aspx
Gonelevu, T. (2014, October 30). Personal interview with Tevita Gonelevu – Fiji
TV Chief Executive Officer. (J. Turagava, Interviewer)
Whiteside, B. (2014, November 8). RBF confident economy will exceed 3.8
percent growth target. Retrieved from Fiji Television Limited:
http://fijione.tv/rbf-confident-economy-will-exceed-3-8-percent-growth-target

71. References cont.
Fiji Sun and Fiji Times websites
Websites
Fiji TV, FBC and Mai TV
Vodafone
Digicel
Mai TV Secures Fiji FIFA Rights
http://www.tv.com.fj/fifa2014.php
Mai TV takes Bundesliga to Fiji
http://www.sportbusiness.com/tv-sports-markets/mai-tv-takes-bundesliga-
fiji
FBC gets English Premier League
Oct 07, 2013
http://www.fbc.com.fj/fiji/14291/fbc-gets-english-premier-league

72. References cont.
Personal Interviews with:
Anil Senewiratne, Marketing Director, Courts
Buys advertising on TV Stations
Liga Gukisuva, marketing Vodafone Fiji Limited
Buys advertising on TV Stations
Tevita Gonelevu – Fiji TV Chief Executive Officer

74. Josese Turagava
S95007912
Shivandhna Rani
S02000886
Anil Senewiratne
S11095516
Taniela Matakibau
S83411330
Stuart Gow
S11100919

75. “Always Something Good to Come Home To!”
MBA-440 Strategic Management Group F November 2014