|← Long-Term Investment Decisions||Aspects of Supply Chain Management →|
Associations are confronting numerous challenges in the 21st century. The globalized companies require strategic thinking and evolving suitable corporate strategies, which would help them enhance their business processes. A sustainable or reasonable advantage is possible when a firm executes a value-creating plan, which other companies cannot duplicate or find it too costly to initiate. The corporate strategy includes the commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn high returns. The goals of the corporate strategy are challenging not only for large firms but also for small local outlets. The corporate strategy is an arrangement of main choices made to meet targets. It is referred to as a comprehensive business groundbreaking policy capturing association’s mission and objectives and the way to reach its targets. Moreover, such a strategy foresees distinctiveness. It implies purposely picking an alternate arrangement of exercises to convey an interesting mix of shareholders' value.
Technicolor is a French-technology company with unwavering dedication in the media and public entertainment. At present, it is at a high level of digital development. The company possesses different research and development facilities and strives to improve the business sector by creating innovative video administration and supporting its staff members and merchants. The organization derives benefits from the protected innovation properties that are concentrated on imaging and sound advancements, resulting in a flourishing business. It is focused on upgrading the media experience on any screen, in cinemas, and at homes.
Special Brand of the Technicolor
Analysis of the Internal Factors
Resources and the Key Competencies
Research and technological development and the organization property frame the key part and area of enthusiasm for improving the brand of Technicolor. For example, the activities performed at the stage of advancement are aimed at end-user accommodation and usability. The essential goal of research and innovation is to sustain and exchange technological creativity and support the existing administrations and arrangements. The licensing activity includes patent, technology, and trademark. The process of licensing is responsible for protecting the company’s intangible assets and technologies, as well as managing its product brands, structure, and improvement for ease use and convenience of end-client.
The essential goal of research and development is to sustain and exchange advanced technological creativity and enhance existing administrations and arrangements. The licensing action incorporates patent, innovation, and trademark. It additionally deals with permitting, which is important for securing the organization's resources and advances, as well as for its item marks. M-GO is another stage implemented for experiencing by the end-consumer extreme excitement in regard to discovering, watching, and appreciating. Moreover, Virdata offers the lifetime benefits that apply to a few industrialization and customization undertaking applications, for example, resource management and resource tracking frameworks.
Over the past years, the quality model for the music business was widely used on the Internet. The innovation processes occurring nowadays imply that media, including CDs, could undoubtedly be duplicated without loss of value. To start with, it is not an essential concern as duplicating is entirely futile if you cannot disseminate the copied information. The recent changes have impacted the MP3 encoding and the Internet. The development of MP3 implied that the duplication could be packed without a substantial loss of quality. It makes conveyance much simpler. Moreover, there is a rapid development of a web platform, through which the duplicates could be traded. The M-GO is a new platform used to redefine the notion of digital entertainment, which provides an opportunity to find, watch, and enjoy different data much easier. On the other hand, Virdata offers lifetime services that apply to several undertaking applications, such as resource management and tracking frameworks.
The entertainment sphere offers video-related innovations and administrations for media, as well as for legitimately entertainment areas for publicizing of commercial ventures. The business is devoted to conveying entertainment solutions for administrations, including creation, imaging, completing, and arrangement. Moreover, the advanced and physical substance circulation, including DVD, Blu-beam administrations and the IZ-ON Media provide computerized spot-based media administrations.
The home entertainment sphere offers a wide scope of solutions for Pay-Tv and administration suppliers regarding the conveyance of computerized TV, voice, and home administrations. Technicolor offers life-entertainment solutions considering such issues as, for example, set-top boxes, passages, and management of remote tablets.
Technicolor Values and the Code of Ethics
The Technicolor Company code of ethics forms a foundation for its core practices. The Ethics Compliance Committee established regarding the 2006 Code of Ethics, is in charge of every moral issue identified within the media and amusement activities. The Code of Ethics, upgraded in 2012, represents Technicolor's business choices and activities and outlines the essential qualities people rehearse in their everyday operations. Key standards of the company presuppose the disposal of discrimination in appreciation of work and occupation, as well as the end of corruption. They have been assigned to all Technicolor workers and are accessible on the organization's intranet and websites.
Technicolor Sourcing Morals Strategy and Supplier Morals Handbook
Technicolor's sourcing and the acquisition association is the first intimate association established to work with outside providers and which is in charge of business advancements and usage of the moral principles. Technicolor is required to oversee the fulfillment of the main tenets and ensure their understandings by the employees. Moreover, the company strives for propagating its ethical guidelines. Accordingly, it sincerely works with people whose hobbies are influenced by their business dealings. All Technicolor workers included in outsourcing activities must follow the standards of moral behaviors.
Specialized Assets and Core Competence
Technicolor stresses a need to execute continuous ecological and security policies. The foundation of the project exertion is the corporate contract that describes essential organization models proposed to secure human health and the earth. In such respect, Technicolor offers help with meeting its legitimate and corporate commitments. Acknowledged by Technicolor's CEO and implemented in Technicolor branches around the globe and on the external websites, the Charter ensures the organization's dedication to enhancing offices, administrations, and items to the greatest advantage of its partners. The Charter is supported by more than fifty guidelines and policies.
Analyzing External Challenges Facing Technicolor in the Music Industry
Using the Five Forces Model
The music industry is dominated by the Big Five major record companies, which account for approximately 75 percent of a $25 billion market in CDs and related products. The information below represents an analysis of the music business before customers started downloading music from the Internet sources. The examination implements Michael Porter's five powers model that is intended to evaluate the level of rivalry in the entertainment industry. It has led to changes in the competitive forces as detailed below:
1. Higher Bargaining Power of Buyers
At the early stage of industry development, the buyers’ options were limited. They could get music from one organization, and the established firms had significant control over the costs of CDs. Currently, the purchasing power of customers is quite high. The consumers can choose to download music, rather than buy CDs for a significant cost in the video shops or stores. It means that Technicolor Company has to offer its products for lower prices and through different channels. Fortunately, they have started to use different applications, for example, the Google Play Store and iTunes from Apple. Alongside such methods, many organizations need to listen to the wishes of buyers. They should not work with one specific format but rather adjust to the changing trend as they cannot specify channels anymore.
2. The Suppliers’ Bargaining Power is Relatively Low
The recording craftsmen are constrained to work with at least one of the huge firms as they had small arranging force. Terms incorporated into record contracts for new entertainers are extremely institutionalized. Changes at the level of rivalry in the business have occurred in the late 1990s and turned out to be essentially due to recent technological innovation. Widespread access to personal computers, MP3 encoding, and the Internet have made it possible for consumers to copy and distribute music at a low cost.
Presently, the situation has changed and the obtaining force is evolving. Recognizing specialists and customers became extremely important. It plays a great role due to the websites where craftsmen are less reliant upon the ordinary systems of organizations. Sometimes, they offer their music totally by-passing the record organization. It suggests that they have obtained more control over their production and trade and that the record association has less control over the skilled workers. The same statement can be applied in regard to consumers. As mentioned earlier, a consumer may not become attracted to the price of the item that eventually leads the customer to alternative solutions.
3. Barriers to Entry are Relatively Lower in the Industry
During the early to late 19th century, the barriers to entry made the potential threat for new entrants negligible. The financial resources required to record an artist or group were substantial. Sound and video recordings could be easily made and distributed, as well as contacts with venues regarding where the artists would perform. It was difficult for a new firm to become established. However, the recent developments in the music industry and technology have made it easier to sell music due to the Internet. Setting up the record organization is appropriate as more specialists are doing, as Simply Red for instance in light of the fact that one is less reliant on its conventional selling channels.
4. There are Substitutes, Giving Alternatives for Choice and Preference is Extremely High
Music is mainly available and playable in one format, the CD. Nevertheless, nowadays, different formats and sources to download music are available despite the music company’s rights to own the artist’s recordings. In other words, more substitutes are presently available. Shoppers more often try to download tunes from the Internet, if they are not satisfied with the prices or with the music specifications.
5. Stiff Competition Among Existing Business Rivals is Also Higher
Stiff competition prevails among the largest firms as well as between the big and smaller companies but with relatively lower magnitude. Insignificant changes and alterations occur over time in varied market territories, as well as in the big technological firms. However, competition is becoming the subject matter of modern business. At the point when more players enter the music business due to the expansion of the recording companies, the opposition increases. In such a manner, the great firms can easily lose their piece of the market share.
Strategic Options and Choices
Technicolor attempted to satisfy a few targets in 2013 as a basis of its moral and corporate social commitments. They incorporated the continuation of projects to lessen further worker injuries and accidents at work, especially severe wounds, curbing waste, and enhancing carbon emissions from assembling operations. The Group additionally proceeded with an internal reviewing process and used an electronic reporting framework for collecting health and environment-related data. Since 2010, non-modern locales are adding to environment and reporting.
The Group has revived and reexamined its Code of Ethics. Morals standards have been implemented and used since 2013, specifically for workers in the US, China, and Mexico, who completed the courses highlighting the key parts of the Code of Ethics. Additionally, the Management Academy for the improvement of administration skills was involved in the educational process. It helped the administration and the group members who meet every month. Moreover, such an administration educational program incorporates key points of individual management and energizes the cooperation between administrators to enhance their practices.
Advantages and Disadvantages
The examination of the advancement of the organization is fundamentally significant to individuals and skills improvement activities. Considering such a point of view, an extensive and detailed survey of the occupations’ structures in the association must be performed at a moderate pace. In 2013, the Group acquired another form of its LCA apparatus that is SW. Consequently, it gave access to the European Reference regardless of other existing databases. It helped the industry expand and improved returns, as well.
Main Actions and Results
Product Development and Health Support Services
Different group activities were introduced in 2013 that are still in force today. Moreover, they had a sufficient impact on the organization's items and promoting procedures. The Bangalore India group in 2012 added to a supporting association with the Vatsalya School that works with kids experiencing cerebral paralysis and the related problems. It was a great honor for welcoming individuals from the school to showcase their current items inside of the workplaces, as well as make in-kind donations. Technicolor supports Les Toiles, which is a non-benefit association that displays favorite films to hospitalized kids across France. As a significant aspect of the sponsorship, representatives from the Technicolor central command volunteer to provide monthly screenings at Paris healing facilities. Made in 1997, Les Toiles is a unique association, upheld by the whole film industry in France, including merchants, producers, and executives. With such community initiatives, the company can penetrate to unexplored markets, such as the ones in remote areas of Manaus and Bangalore and thus place its brand and products as a way of marketing. It is a feasible strategy, which can be implemented by the company in relation to its customers.
Corporate strategy is the implementation of dynamic management of ecological opportunities and business threats considering the aggregate qualities and shortcomings. It incorporates characterizing the corporate mission, determining achievable goals, creating strategies, and setting rules. For the Technicolor Company, it can remain vibrant in a competitive market with several internal and external challenges influencing its special brand. The corporate strategy captures the notion of strategic management, which is used to achieve and maintain a competitive advantage. It enables Technicolor to operate successfully in the changing business environment by providing alternatives that enhance the sustainability of the product in the market. With a clear corporate strategy, the company has managed to reach one of its main goals, which is to operate favorably in the ever-changing and complex environment.
- Aspects of Supply Chain Management
- Government Spending as a Means to Create Jobs
- Long-Term Investment Decisions
- Joseph Schumpeter