Question

In the Capsim simulation, list the advantages and disadvantages of the Broad Cost Leader strategy.

Answer 1

Advantages of Broad cast leader strategy

It’s all about getting your message across to a wider audience – consider it your own TV channel on which you are able to deliver live or on demand coverage to a potentially global audience.

• It’s live! – You can deliver a message, announcement or gig, in real time, as it happens without any delay.

• No limits – events can run as long as necessary, as they are not limited to TV scheduling, DVD/ video length.

• Cost – webcasting content is cheaper than using commercial television transmission platforms such as satellite. Why spend fortune to broadcast your event on TV for a small geographical area when you can broadcast it over internet to the entire planet at a fraction of cost.

• Interaction – users can interact with the event, through integrated voting, chat or by accessing website links, resources that relate to the streaming media event

• Contribution – questions can be posed live to the speakers by email, telephone call ins or even video conferencing.

• Revenue generation – charging viewers to watch your content can provide easy methods of making money. The web is geared up to accepting easy credit card payments of ‘pay as you view’ and users are used to the concept

• Niche content – terrestrial and even digital providers struggle to provide airtime to specialist television content, something that is not an issue when using the Internet.
• On demand – using pre-recorded clips, true ‘video on demand’, viewers can opt to watch event highlights, at any time of day or night from any corner of the world.
• Security – using registration or password mechanisms we can either restrict content to known users, or capture valuable marketing information from your viewers.

• Marketing – event organizers can use streaming media to drive visitors to their website, and strong branding messages can be easily integrated in to the viewing experience.

• Communicate in One Voice: Ensure everyone hears the same message from the same source. Eliminate confusion and rumors.

Disadvatages

• creative limitations – instant visual impact must be made.
• lack of target market selectivity.
• production costs are high.
• lack of prestige.
• no editorial support.
• environmental clutter (many displays in one place)
• weather can restrict communication of the message.
• urban markets only.