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SWOT

SWOT analysis is a vital strategy applied in an effort to realize Strengths,


Opportunities, Weaknesses and Threats of either an organization or individual. In the
business context, this strategy enables a business to discover its strong and weak
points, thus enabling it to survive both the internal and external forces. Therefore,
this research examines the meaning and further, elaborates its basic components as
applied in the analysis of enterprise.

Strength is considered as a positive internal characteristic of an organization,


whether intangible or tangible. It is that attribute that is within the control of the
business organization. A business that uses an effective SWOT analysis must know its
strengths. Such knowledge is obtained through the business determining what it
does exceptionally well and the resources the business owns. For instance, strength
can be skills and reputation of workers, assets of the firm, the advantages that the
firm enjoys over its competitors, and the general attributes that extend competitive
advantage to the firm.

There are four key components has ABS-CBN has, and these are:

1. Well-known name
2. High confidence in the market
3. More advanced technology
4. Customers loyalty

First we have the Well-known name, in these digital generation its hard to exist and
to be known for the netizens because we know a lot of competitors had a ability to
ignite using those things a lot of netizen usually use like social medias, and some
network companies exist in the country, but ABS-CBN had a great strategy for their
competitors. ABS-CBN programs are indubitably the root of all T.V histories. The
creator of unforgettable telenovelas, Fantaseryes, etc. it is also the countrys most
trusted and most reliable media partner. From sports to beauty pageants, concerts
and events, ABS-CBN can deliver optimum results both in great exposure and
excellent sales. The company is top-notch; it is beyond over the top. Social media
everyday topic, trend setter and most searched network even without efforts.

Second is the High confidence in the market, profits of multimedia and


entertainment giant ABS-CBN Corp. may reach the P3.6-billion territory this year, a
tall order that will be buoyed by revenues from election-related and regular ads, and
its growing consumer business, company officials said.

Our profit guidance for the year is between P3.3 billion [and]
P3.6 billion. The drivers would be a combination of advertising,
movies, election-related revenues [and], at the same time,
consumer sales, Aldrin M. Cerrado, the companys CFO, said in a
chance interview.

Third is the More advanced technology, built as the headquarters of ABS-CBN, the
center experienced several management changes. Including to those changes such
as a takeover by RPN and sister stations IBC and BBC, the addition of a fourth tenant,
the government station GTV (now PTV), and then the departure of RPN, IBC, and BBC
in and the entry of NMPC and BB in which accompanied the remaining tenant MBS.
And lastly, the Customers loyalty, Kapamilya Thank You is the customer loyalty
program of ABS-CBN that expresses love and gratitude to our loyal Kapamilyas
wherever in the world you may be. We want to thank you especially for your loyalty
to our shows, our celebrities, products and services. Loyal Kapamilyas will receive
Thank You Points from watching ABS-CBN TV Shows on TV or iWant TV, visiting our
website, subscribing to SKY and using ABS-CBN TVplus, ABS-CBNmobile and other
products and services. Thank You Points can be used to get special gifts, rewards and
exclusive privileges from ABS-CBN. Exclusive gifts and privileges include SKY bill
rebates, Meet and Greet a Kapamilya Star, tickets to ABS-CBN Studio tours and
shows such as ASAP and Showtime, and free products and services such as KBO, PPV,
SMS, Data, Calls, and many more.

Weaknesses are described as a firms internal attributes which are negative in


nature and are responsible for denying an enterprise a competitive advantage over
the other firms. In order to favorably compete in the market, a business must
improve these negative aspects. Stanley argues that a firm might require identifying
the factors that deter it from gaining competitive advantage. Further, it may require
understanding the vital elements that would be lacking in comparison to its
competitors and determining whether the business is located in a strategic place in
the market.

there are three weakness ABS-CBN has:

1. Failing profit in the first quarter of 2017


2. Issues on Security of Tenure of Personnel
3. Copyright Infringement

First is the Failing profit in the first quarter of 2017, based in Philippine Stock
Exchange data showed, consolidated revenue dipped to P9.6 billion for the first
three months of 2017 from P9.89 billion in the same period last year which had
benefited from political ads before the elections.
ABS-CBNs consumer sales grew by 10 percent to P4.7 billion while its first quarter
airtime revenues were 13 percent lower compared to the same period last year.

According to ABS-CBN Chief Financial Officer Aldrin Cerrado, they did not expect a
significant growth in earnings during the first quarter given the strong performance
of the first quarter of last year.

Second is the Issues on Security of Tenure of Personnel, The International


Federation of Journalists (IFJ) joined its local affiliate in calling the management of
ABS-CBN Broadcasting Corporation to reinstate employees it terminated.

ABS-CBNs demand that staff waive their rights and working conditions in exchange
for permanent employment is a deplorable move that attempts to ignore
international norms of fairness and justice,

The International Federation of Journalists joins with its affiliate, the National Union
of Journalists of the Philippines, in calling for ABS-CBN to withdraw these contracts,
reinstate the staff and recognize the right employees have to permanent work and all
related benefits under law, free of retrograde conditions, .

Lastly,Copyright Infringement, The respondents from ABS-CBN were ABS-CBN


chairman Gabby Lopez; senior vice-president Jose Ramon Olives; vice-president for
news operations Jake Maderazo; former ABS-CBN vice-president for news operations
Luchi Cruz-Valdes; assistant vice president for news operations Jose Jing
Magsaysay Jr.; and news operations director Alfonso Pal Marquez. Also included
were supervising producer Maria Progena Estonilo Reyes, reporter and anchor Lynda
Jumilla, executive producer of the now-defunct program Insider Lilibeth Frondoso,
executive producer of Magandang Umaga Bayan Annie Eugenio, executive producer
of News Patrol Dondi Garcia, Luis Alejandro, and former ABS-CBN news anchor Erwin
Tulfo.

Opportunities, suggests that external and attractive elements which give hints on
expected prosperity of a business enterprise are its opportunities. These positive
elements can be detected by way of identifying the attractive factors that a business
can benefit from in the market. In addition, external factors for any form of growth in
the market are part of opportunities.

ABS-CBN opportunities contains:

1. Development of global brand


2. Joint development with Globe company
3. New sources of income

First we have Development of global brand, ABS-CBN Global goes beyond content
development and distribution as part of its mission to serve, empower, connect, and
instill national pride among Filipinos worldwide. ABS-CBN Global provides products
and services that enable Filipinos overseas to connect and nurture relationships with
the Philippines and Filipinos worldwide.

Second is the Joint development with globe company, In May 2013, ABS-CBN
Convergence Incorporated announced the launch of its mobile brand, ABS-
CBNmobile. The launch of the new mobile brand is being supported through a
network sharing agreement with Globe, wherein the latter provides network capacity
and coverage to ABS-C on a nationwide basis. ABS-C formally launched the brand in
November 26, 2013.

And the third is New sources of income, As of end-June 2017, ABS-CBN sold over 1.3
million digital terrestrial television (DTT) boxes.

Meanwhile, its broadband business Sky Cable Corporation saw its subscriber base
increase by 47% to over 169,000 since June last year. Its consumer business O
Shopping Channel "is now generating over P2.2 million in daily sales.

Threats are external factors that an enterprise has no control over, which have the
negative ability of putting the business or its strategic plans at risk of failure. The only
benefit that threats offer businesses is the fact that success can be realized by
responding to threats with effective problem-solving and planning. Threats are seen
as the strong competitors in the market and are factors that reduce the profits of a
business. Further, the introduction of new goods or services that tend to make the
products of a business less popular in the market can be treated as a threat.

ABS-CBN consider these three as their main threats:

1. Competition in TV ratings
2. New strategies employed by other TV networks
3. Block of franchise renewal

First we have Competition in TV ratings, ABS-CBN Corporation strengthened its


dominance in nationwide television (TV) ratings in May 2017, while GMA Network
Incorporated said it was the leader in urban households in the country.
Citing data from Kantar Media, ABS-CBN said it widened its TV ratings lead
nationwide in May through its average audience share of 46 % compared to GMAs 34
%.

It also beat GMA in different parts of the country such as Total Balance Luzon where
it recorded an average audience share of 47 percent compared to GMAs 36 percent.
In Total Luzon, ABS CBN has 41 percent against GMAs 37 percent. In Total Visayas,
ABS CBN has 53 percent compared to GMAs 28 percent. And in Total Mindanao, ABS
CBN has 53 percent as opposed to GMAs 29 percent.

Meanwhile, GMA said it was the most watched TV network in May based on Nielsen
TV Audience Measurements National Urban TV Audience Measurement, which
showed it had an audience share of 42.5 percent, ahead of ABS-CBNs 36.7 percent.
GMA said it also kept its lead in Urban Luzon, which accounts for 77 percent of the
total urban TV household population in the country. In particular, GMA had a 49.8
percent audience share in Urban Luzon versus ABS-CBNs 30.5 percent.

Second is the New strategies employed by other TV networks, The streamlining


undertaken by GMA-7 TV network that laid off 200 media workers is geared towards
increasing ratings and revenues. The regional stations of GMA will not be closed
despite the retrenchment of some of its employees in Cebu, Bacolod, Davao,
Cagayan de Oro, Naga and Ilocos.

Lastly is the Block of franchise renewal, President Rodrigo Roa Duterte threatened
to block the renewal of ABS-CBN's franchise, which expires in 2020, after accusing
the company of accepting money for a campaign ad that failed to air before the May
9, 2016 polls, and then failing to return the money.

Speaking to reporters in an ambush interview, President Duterte alleged that other


politicians may be in the same boat, and that this was ground for not allowing the
company to operate. Duterte said ABS-CBN's franchise has been there for 25 years.
Its renewal is pending in Congress.

An effective SWOT analysis helps a business give emphasis to its strengths, improve
on weaknesses take advantage of the opportunities present and avoid threats. This
analysis is vital in the formulation of business strategies that majorly work towards
achieving competitive advantage in the market through understanding of the
internal and external factors within the structure of competitors.