Question

Assess the profitability of the domestic Chinese TV Industry and state if the industry is currently threatened. List the variety of factors that stimulate the companies’ threat.

Answer 1

Domestic China TV Industry: The television industry in China is a business of high technology based program productions, transmissions and coverage in the China country. China Central Television is the China’s largest and most powerful national television station in the China country. Currently over 3000 channels are available in the Chna country to support the TV industry in the China domestic market.

Profitability of China Domestic TV Industry: The China is the world’s largest population country and people need the entertainment. The China domestic TV industry meets the demand of entertainment in the China Country. It has been in the country from a long duration. It was started around 1950s in the China country. The profitability is significant and the TV business players are having great earning from the TV industry. The TV business sector has been a evergreen sector of high earning. Advertisement is the key contributor in the earning of the TV industry. The Industry today has more than 3000 channels in the country. The high population platform makes the TV industry as a high earning industry in the China domestic market.

Yes, the China Domestic TV industry is currently threatened: This is due to the entry of new technology and option for the China people for the entertainments. The new options like social media, multimedia, animations etc. This new technology entrant makes the China domestic market to shift from TV focus to this internet based entertainment options.

List the variety of factors that stimulate the companies’s threats: Following are the factors which stimulates the threat to the TV industry in China domestic market are as below

• New Technology entrants for entertainments: Social media, multi-media, face-book, whats-aps, etc. are become the new technology entrant in the China domestic market as a alternate option for TV industry. This has a high threat to the China Domestic TV Industry.

• Consumer interest shift towards internet based entertainment: Recently due to advancement in technology, the consumer interest shifted towards the internet based entertainments, so less focuses on TV industry. Thus this provides a high threat to China TV industry.

• High Competition in the China Domestic TV Industry Market: The competition in the China domestic market is very tough and lots of players are in the competition for the TV industry. Thus this high competition makes the low options for the TV business players in the market and this is a essential factor for the threat to the China TV industry.

• Foreign Entertainment Player Entry: The Foreign player entry in entertainment in China domestic market has a high threat to the existing business model.

• Exposure to world entertainment market: Exposure to world entertainment market makes the China domestic market weak in entertainment. Thus this factor do impact the China TV market as well.