The Case of ABS-CBN

Case Analysis
 We all know that ABS-CBN network is a dominant player among the Philippine
television networks today. In fact, long time ago ABS-CBN started the least watched television
in the country. This is a brief summary on how the least-popular television network transformed
into a well-known media powerhouse and how they used marketing strategies to get there.

After the People Power Revolution, ABS-CBN was finally reborn a TV network and
finally free from nearly 14 years of government control under Martial Law. But by the end of
that year, ABS-CBN was the last placer among the five TV networks. Actually, ABS-CBN
wanted nothing less than to be the number one network country in the Philippines. They entered
an industry that was essentially dominated by two networks, namely GMA-7 for the upper end
and IBC-13 for the broad market. ABS-CBN had no idea what to answer in the question of the
audience “why should I watch you in the first place?” so they decided to formulate a marketing
strategy. Their first step was to do SWOT analysis or identifying the strengths, weaknesses,
opportunities and threats because this will allow you to spot potential avenues for strategy
formulation. Because ABS-CBN wanted nothing less than market leadership, they only have two
choices, whether compete with neither GMA-7 nor IBC-13.

Therefore, in terms of which network to target, ABS-CBN decided to compete directly

with IBC-13 rather than GMA-7 because they would have a better chance to win against IBC-13
and GMA-7 was a well-managed and cash-rich, which means that any attempt to compete with
them would be a long and arduous battle. ABS-CBN used its key strength, namely its huge
financial resources to lure the unhappy stars of IBC-13 toward its own camp with a very
attractive compensation packages and built a better quality programming. ABS-CBN also
launched itself as “The Star Network”. Incase ABS-CBN did not have the rich financial banking
that allowed them to pirate stars and produce a better quality programming, they can still be
successful by using any strategies. ABS-CBN can take a loan and pay it later when they will
have income or gain. They can also look for sponsors and they can also establish a fund raising
activity. ABS-CBN focused only to broad market and did not appeal to buy the upper income
market and broad income market at the same time because it’s better to concentrate first in one
market, especially when you are a beginner. Maybe they believe that they can do it by step by
step approach. So they identified first the strengths and weaknesses of one market before
targeting it so that they will know if they are capable of entering that market.

On the other hand, GMA-7 used to target the middle to upper income markets but
actually it changed. GMA-7 is targeting broad market head to head with ABS-CBN because they
observed that ABS-CBN is getting successful and they don’t want that they will lose their
position in the market. GMA-7 is afraid that ABS-CBN will take their place that’s why they
became competitive to ABS-CBN. In 2010, TV 5, another TV network, launched and soon to
challenge ABS-CBN for market supremacy. It began by imitating the old strategy of ABS-CBN.
TV 5 began pirating popular stars from ABS-CBN and other TV networks. However, the
strategy did not translate into any significant success in the way that ABS-CBN’s original
strategy did. The strategy of ABS-CBN is different with the strategy of TV 5 because they have
different situation with TV 5. In the past, ABS-CBN only competes with the five TV network
and now there are more TV networks that are popular that TV 5 will be competing at. TV 5
should start competing with the lowest level just like what ABS-CBN did before because ABS-
CBN is hard to compete with. ABS-CBN already managed to rank up and as years goes by; they
learned many strategies that they’re applying that’s why they got position of being famous and a
well-known TV network.

In a business, you need marketing strategies to succeed. First you should make a market
plan because it is important for developing a strategy as it helps you identify your target market
to set measurable goals. In competing with other business, you should make first a SWOT
Analysis or identify ones strength, weaknesses, opportunities and threats. You should analyze its
markets and marketing environment to find attractive opportunities and identify environmental
threats and you should analyze ones strengths and weaknesses as well as current and possible
marketing actions to determine which opportunities it can best pursue. You should also build
relationships with your customers by creating customer value and satisfaction. In doing business,
there will always be failure and that failure will help you learn from your mistakes. There’s no
success if there’s no failure. Always do your best just like what ABS-CBN did, from the last to
number one. Everything is possible through the use of principles of marketing.