Case Analysis (SWOT & Issues) PDF

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Summary

ViewpointThe Philippines’ leading network in broadcasting was closed by the orders of the government on May 5, 2021. It was a big news and shock to the country men as it was their source of entertainment and a big help in being updated with the news especially with the current situation. the ABS-CBN...

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Viewpoint The Philippines’ leading network in broadcasting was closed by the orders of the government on May 5, 2021. It was a big news and shock to the country men as it was their source of entertainment and a big help in being updated with the news especially with the current situation. the ABS-CBN network was operating for over 73 years. Its rival network, GMA, had a profit of P3.63 billion at the end of the period. It increased by 159%, while the total revenues reached P10.6 billion. It increased by 57%. The increase on its revenue were due to the fall of ABS-CBN, which means less competition.

After 13 hearings, a committee of the House of Representatives, most of whose members are allied with Mr. Duterte voted by an overwhelming majority to deny ABS-CBN’s application for renewal of its broadcast franchise. The network had been forced off the air in May, after the franchise expired. After the network went off the air, there was a backlash from millions of Filipinos who rely on it for news, forcing the lower house of Congress to rush hearings on the franchise renewal. The congressional hearings did shine a light on some shortcomings of big media networks, including unfair labor practices and a lack of self-regulation, analysts said.

Statement of the problem The shutdown was allegedly caused by its critical news about the current President of the Republic of the Philippines, Rodrigo Duterte’s war on drugs. The reported real reason for the whole controversy is due to the expiration of its congressional franchise on 4 May 2020 followed

by a “cease and desist” order (CDO) issued by the National Telecommunications Commission (NTC) on May 5, 2020.

There was an alleged transgression of the network in a case filed by Solicitor General Jose Calida Jr on January 10, 2020. The government said they want to put an end on the abusive practices of ABS-CBN, like pocketing the money from its loyal subscribers. The practices were said to be disregarded for the past years.

The alleged ABS-CBN violations were bias news reporting, labor-related contraventions, and breaches as well as broadcasting for a fee and operating channels without the approval or permit from the NTC. They also fail to publicly offer any outstanding capital stock to any SEC within the Philippines. They also allegedly issued Philippine Depository Receipts (PDRs) to foreigners and the skepticism and network’s chairman, an alleged American which the network claims he has dual citizenship. Objectives A. To formulate solutions to the stated problem above to prevent the recurrence of the problem. B. To prevent the reoccurrence of the violations of the broadcasting network C. To ensure that the broadcasting network give unbiased news and report to the public

Areas of Considerations (Issues and Concerns) Government closure of any large company affects many lives and leads to the loss of too many productive jobs. A democratic government should even be more careful in shutting down a

media enterprise because this would violate fundamental rights of free expression and media freedom enshrined in our Constitution. The regulators at the National Telecommunications Commission (NTC) issued a cease-and-desist order that closed down ABS-CBN Corporation on May 5, promptly executed on the day after the current franchise expired. As the House of Representatives had failed to act on its application, Solicitor General Jose Calida was reported to have warned the NTC regulators that he would file charges against them, if it allowed the network the grace period to continue operating, which it has the power to do. ABS-CBN is unrivalled in its reach throughout the hills and valleys of the archipelago; its closure at this time deprives many Filipinos in remote areas with their only connection to the outside world. Among the largest in the region, the network is followed by many Filipinos in diaspora, in capitals from SEAsia, the Middle East and the US. Filipinos abroad rely on ABSCBN for the latest news from home, follow their favorite drama and entertainment program, keeping them in touch with their roots. Thus, must the people served by a free media find the courage to protest, to raise their voices against the closure of ABS-CBN. Only when the public is moved to exercise their right to free speech and expression can the Constitutional grant of its protection have full meaning.

SWOT ANALYSIS

ABS-CBN Strengths 

Popularity, power, money, and talents

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More advanced technology

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Customer’s loyalty

Weaknesses 

Competitions among other television networks, and dispute with the Philippine President

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Failing profit in the first quarter of 2017

Opportunities 

Chances to improve, maximize, and grow their capabilities as a television network even more through boosting their network like more advertisement, and etc.

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Offering new products and services

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Utilizing online platforms

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Possible joint venture with other well-known company

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Rising demand

Threats 

Probability of not being renewed for their spot-on national television due to their problems with the Philippine President.

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Growing competition

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Transfer of talents and artists

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Consumer’s ability to pay services and goods

Alternative Courses of Action for ABS-CBN Corp: The ABS-CBN Corporation can consider focusing on an unrelated diversification so as to stay in business waiting for the license to be renewed. ABS-CBN should investing heavily in research and development so as to know what the market wants and need so as to provide a service that will generate more money. ABS-CBN corporation should consider investing in unrelated diversification a complete different product not in line with current product or service offered. The organization can invest in real estate business buying land and developing it, this business might help in cash management. Other alternative is to expand internationally, ABSCBN Corporation should consider airing world-wide covering news on a wide range of spectrum and a stop focusing only the Philippine as the target market. Tapping the international market does not come easy the corporation will compete with international broadcasters like BBC, CNN and etc. Expanding international will reduce political threats and economic uncertainties.

Action Plan. ABS-CBN Corporation should shift its focus from locally to globally based, change of target market. Changing target market might will reduce local politics interference into the Corporation Day to day business. Shifting focus to an international based organization this might solve possible filing of bankruptcy in few years from now due to losses the company is facing. The organization should overhaul its service and make it meet international standards. The corporation should consider relocating to other countries that have political stability and freedom of press like United Kingdom and United States. The corporation should be prepared to invest heavily on recruiting international correspondents in each country of interest or a continent that

will be gathering content and airing it 24/7. Another strategic plan is to launch a satellite in the space and open a platforms that will target small to medium content creators to rent space and be able to air those channel on their satellite either on an open view or subscription view basis....