Al Jazeera Broadcasting Company: PESTEL Analysis

Al Jazeera Broadcasting Company PESTEL summary decision maker SummaryThe objective of this report is to analyse the key external issues modify Al Jazeera Broadcasting Ne bothrk using the PESTEL Co. mnemonic. This analysis lead mete out the opportunities and threats facing Al Jazeera and its competitors in the broadcasting industry.Al Jazeera is generally regarded as a controversial TV interlock and has faced various forms of censorship in different countries. These censorships represent a signifi freightert threat to their hope to increase commercialise shargon.Increasingly, keep an eye oners ar demanding a much go coverage of intelligence agency program earlier than a perceived one array to the story served up by endureing intercommunicates alike BBC and CNN. Al Jazeera argon seen as one of the main networks to provide this rounded coverage.Al Jazeera faces aspiration from in the altogether Arab network moves who are copying the formers format. Since the launc h of their English services, the Qatar ground network is now in deport competition with the likes of BBC and CNN which brings challenges prevalent when competing against well established brands.Al Jazeeras outer Environment PESTEL AnalysisAlthough external forces are beyond its control, Al Jazeera can use proactivity to improve its get based on its understanding of this milieu (Scholes, 2004).It en fittings Al Jazeera to be in a position to determine its position in the industry and subsequently identify and implement strategies and activities that will put to work the opportunities in the external environment and minimise the threats faced (Grant, 2004).The mnemonic, PESTEL Co., will be utilise to carry out an appraisal of the external factors affecting Al Jazeera. The mnemonic stands for the amountingPoliticalEconomicSocialTechnological estimableLegal argument(P)oliticalAl Jazeera is seen as a controversial TV network station. Consequently, it has had run-ins with many c ountries. A lot of these have resulted in censorship of some sort.The US and UK have been reported registering strong protests against the TV networks perceived anti-US and anti-UK stance in reporting the 2003 invasion of Iraq. In Spain, in 2003, a reporter was arrested for containly providing support to Al infrastructure members (www.wikipedia.com).These controversies impacted negatively on Al Jazeera in terms of increase its customer base. The more censorship and negative publicity that they attract, the less they are able to make inroads into the market share of their major competitors like CNN and BBC. This represents a significant threat.In 2004, allegations, though unsubstantiated, were made against the US, of a plot to measuredly target Al Jazeera headquarters in Doha (www.wikipedia.com). On the addition side, Al Jazeera is known for covering post-war issues.(E)conomicAl Jazeera survives on the funding provided by the Emir of Qatar and through advertising revenue. Al Jaze eras main dodging is based on increasing market share instead of profits. The economic expert reiterated as such in its November 2006 edition, influence more than profits are Al Jazeeras driving force. Due to change magnitude globalisation and a general economic upturn in the world economy, i.e. low raise rates, higher levels of spending and investment, Al Jazeera are exposed to change magnitude opportunities in terms of attracting more viewers. Viewers worldwide are better able to afford satellite TV stations in their households, therefore Al Jazeera is perfectly poised to exploit the opportunities presented. Through its web-based subscription-free service, the TV network similarly has an increased reach across the globe.(S)ocialThis represents a significant hazard to Al Jazeera. In Abram Sauers article Al Jazeera Tough Enough (www.brandchannels.com), the source intimated that the channel is seen as providing alternative views from the normal propaganda allegedly served up by mainstream stations. Recently, residents of countries like US and UK are registering their meets and displeasure on what they perceive as misinformation and increased propaganda of the news presented by well-established international TV networks like CNN and BBC. The c erstrn is based on the beliefs that these stations are sympathetic to their respective governments. Increasingly, Al Jazeera is seen as the alternative providing a more realistic and credible news and more important providing views from the other side (i.e. views of Palestinians, Al Qaeda etc). This is translating itself into increased viewing figures for the Qatar based channel. In just over 10 divisions, Al Jazeera recently estimated its worldwide audience at approximately 45 gazillion with over 150000 US households included in that figure (www.aljazeera.com).(T)echnologicalWeb based services in Arabic and English present the TV network with good opportunities to reach a wider audience.(E)thicalIn the western world, for example, the antecedents that be charge Al Jazeera of promoting or supporting terrorist activities which worldwide is regarded as unethical. In the middle East, the opposite view is held. Al Jazeera has cleverly constructed an image of itself as the station for the underdog.(L)egalIn a nutshell, the obligation to provide fair and impartial news places a great duty of care on organisations such as Al Jazeera to be responsible in disseminating news. The threat here is nonstarter to adhere to legal obligations can end in closure for the station.CompetitionTwo Arab networks are eating into Al Jazeeras share of the Arab market particularly in the Middle East, these are Al Arabiya and Al Hurra. Since instauration their English based service, the TV network is now in require competition with international broadcasting giants like BBC World and CNN International.Porters Five AnalysisPorters Five Forces model will be used to analyse the competitive forces in the industry Al Jazeera operates in.Each will be looked at in turn and an assessment made on whether each of these forces present opportunities or threats to Al Jazeera.Bargaining power of suppliersThe suppliers of Al Jazeera consist of providers of products and services to help Al Jazeera conduct its operations. These include suppliers of vehicles, equipment and hotel accommodation. on that point are also consultants and presenters who are lured to the station for big money, for example Sir David Frost. The negociate power of suppliers can be considered low and therefore present opportunities to the TV network to attract the best.Bargaining power of buyersIncreasingly, audiences are looking at alternative news coverage as their concern on alleged propaganda offered by mainstream TV news channels grows. This provides a fantastic opportunity for Al Jazeera, who are considered as the prime channel for more balance views. In the TV news network industry, the power of the audience is precise high. W hat is also high is the level of audience loyalty to established brands like CNN and BBC. The threat from such stations is clear as more of these shift into programmes for ethnic minorities and other programmes presented by Al Jazeera.Barriers to entryThis is high payable to high capital and stringent legal requirements to be met. unfermented entrants demote it hard to compete with the TV broadcasting giants. This enables Al Jazeera to focus more on existing competition and stupefy less about new entrants. The main opportunity here is the strategies put in place to maintain or improve their competitiveness can be more useful than if a threat from new entrants was significant.Availability of substitutesMany people follow the news on the radio and online. However, TV is the preferred medium. Al Jazeera has increased its distri exception channel by having their web based service. Therefore, the availability of substitutes is regarded as low and therefore the threat is not signifi cant enough to worry Al Jazeera. However, complementary substitutes like other TV news channels, in particular the Arabic ones will provide a significant threat once they become more established, in terms of eating into Al Jazeeras core customer base.Extent of competitive rivalryBuyer power is high in the industry. The audience are demanding and getting greater resource of channels, thereby ensuring that broadcasting organisations place greater emphasis on the bore of their programme offerings. This poses a threat.The threat of new entrants is low as is the talk terms power of those who supply goods and services to TV network stations. Therefore, the threat from these two forces are low.The availability of substitutes provides a significant threat to Al Jazeera but the threat is well mitigated through the TV news networks creation of a niche market for itself, i.e. one which provides a more balanced alternative view to the norm.ConclusionSignificant threats and opportunities exi st in the world of TV news. The threats for Al Jazeera mainly come from political, ethical and competitive forces while the opportunities are provided by social, high entry barriers and technological forces.Al Jazeera are able to mitigate threats through cleverly film editing themselves a niche in the industry. They are able to exploit the opportunities as more people are demanding a more rounded view of whats actually happening in the political news world, rather than being fed, what is widely being considered as propaganda news.REFERENCES AND BIBLIOGRAPHYBooksBegg, D et al 1997, economic science 5th edition, McGraw-Hill, MaidenheadBuckle, M Thompson, J 1999, The UK Financial System, second edition, Manchester University Press, ManchesterGrant, R 2004, Contemporary Strategic Analysis 5th edition, Blackwell print, LondonHowells, P Bain, K 1998, The Economics of Money, Banking and Finance Addison Wesley Longman, EssexPorter, M E 2004, Competitive schema Techniques for Analysin g Industries and Competitors New Edition, Free PressScholes, K 2004, Exploring Corporate Strategy, Text and Cases, FT Prentice Hall, LondonInternet/Practitioner SourcesAJ Publishing, 1996, About Aljazeera.com, viewed 20 attest 2007, www.aljazeera.com/about.aspAnswers.com, 2004, Al Jazeera, viewed 20th skirt 2007, www.answers.comBritish Broadcasting Corporation, 2005, David Frost joins AlJazeera, viewed 20 attest 2007, http//news.bbc.co.uk/2/hi/entertainment/4318284.stmCNN, 2002, Al-Jazeera Bin Laden memorialize Praises Hijackers, viewed 20 March 2007, http//archives.cnn.com/2002/WORLD/meast/09/09/binladen.tape/index.htmlEl-Nawawy, M Iskandar, A, 2002, The Minotaur of Contextual Objectivity contend Coverage and the Pursuit of accuracy with Appeal, viewed 23 March 2007, www.tbsjournal.com/ memoir/Fall02/Iskandar.htmGuardian Newspaper, November 2005, Gagging for the Truth viewed 23 March 2007, www.guardian.co.uk/leaders/story/0,3604,1649144,00.htmlLynch, M, 2005, Voices of the Ne w Arab Public Iraq, al-Jazeera and Middle East Politics Today, Columbia University Press, viewed 23 March 2007, www.columbia.edu/cu/cup/catalog/data/023113/0231134487.HTM 13kNisbet, E C, 2006, Public diploma, tv set news and Muslim opinion, viewed 20 March 2007, Harvard International diary of Press/Politics 9(2), 11-37, http//islamperceptions.org/Arab%20Perception%20of%20the%20West.pdfSauer, A 2003, Aljazeera Tough Enough, viewed 20 March 2007, www.brandchannel.com/features_profiles.asp?WIPO Arbitration and Media Centre, 2006, Aljazeera Space Channel TV Station v AJ Publishing aka Aljazeera Publishing, Case NO. 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