Strategic Management in the Media Strategic Management in the Media Theory to Practice 2nd Edition Lucy Küng SAGE Publications Ltd Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B 1/I Mohan Cooperative Industrial Area Mathura Road New Delhi 110 044 SAGE Publications Asia-Pacific Pte Ltd Church Street #10-04 Samsung Hub Singapore 049483 © Lucy Küng 2017 First edition published 2008 Second edition published 2017 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency Enquiries concerning reproduction outside those terms should be sent to the publishers Library of Congress Control Number: 2016936400 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 978-1-4739-2949-4 ISBN 978-1-4739-2950-0 (pbk) Editor: Mila Steele Assistant editor: Delayna Spencer Production editor: Imogen Roome Marketing manager: Michael Ainsley Cover design: Jen Crisp Typeset by: C&M Digitals (P) Ltd, Chennai, India Printed in the UK To Gebi and Hira Maya, once more, of course Contents List of cases Acknowledgements Preface to the second edition Introduction Structure of the book What is media management? Defining the media industry Overview of subsequent chapters The Strategic Context Permanent drumbeat of technological change Scanning the strategic environment – PEST analysis Value chain analysis as a tool for highlighting environmental change Value chains in the media Disintermediation and unbundling Fragmentation, extension and contraction Non-linear chains Changing business models Strategic development of business models – the search for adjacencies Impact of the digital platforms – Apple, Facebook et al Streamed media – rent don’t buy Digital pure plays Fragmentation of consumption Acceleration of the hit model Demassification and the emergence of the niche Emergent strategic environments Strategic Concepts for the Media Industries Dimensions of the strategy construct Rationalist approaches Porter’s Five-Forces Model Resource-based view (RBV) Core competencies and dynamic capabilities Is long-term strategic planning still possible? Adaptive approaches Interpretative approaches Conclusions Strategic Responses to Technological Change Technological change and the media industry Convergence and its causes Newsroom convergence Convergence at individual level – the digital editorial thinker Software is eating the media Technology and strategy ‘Organisational technology’ Technology transitions and dominant designs Untangling types of technological change Inertia and its causes New business units as a solution to inertia and path to innovation Ambidexterity – combining exploration and exploitation Bringing exploratory new businesses back ‘in-house’ Conclusions Creativity and Innovation The role of creativity in the media Researching creativity What is creativity in organisational contexts? Creativity versus innovation Where does creativity come from? The core components of creativity Designing a work environment to boost intrinsic motivation Creativity in creative organisations Creativity and the business model Creativity in systems and strategy Conclusions Culture, Mindset and Strategy Culture What is culture? Culture and creativity Layers of culture Dimensions of organisational culture Building a pro-digital culture Cognition Cognition and strategic change Cognitions and digital disruption Cognition and innovation Conclusions Organisation Structure and Strategy From ‘industrial age’ to ‘information age’ organisations Evolution in broadcasting organisation structures The rise of the format producers Mergers, acquisitions and the rise of the conglomerates Impact of the conglomerates Integrate or separate? Alliances From alliances to networks Networks in the media industry 10 .. .Strategic Management in the Media Strategic Management in the Media Theory to Practice 2nd Edition Lucy Küng SAGE Publications Ltd Oliver’s... a tool for highlighting environmental change Value chains in the media Disintermediation and unbundling Fragmentation, extension and contraction Non-linear chains Changing business models Strategic. .. change Inertia and its causes New business units as a solution to inertia and path to innovation Ambidexterity – combining exploration and exploitation Bringing exploratory new businesses back ? ?in- house’