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Diversification

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Submitted By indorobbyjoe
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In UK society television is viewed as a source of information, education, and entertainment. The UK television industry is dominated by a few major household names such as the BBC, ITV, GMTV, Channel 4, and Five as well as the numerous cable and satellite channels such as NTL, BSkyB and Telewest. Recent advances in digital technology are currently driving widespread changes across the television industry. Starting from HD TV to DTT, there is a possibility of 3D TV in the future. In the future it is also possible that the viewer will be able to choose alternate endings to films and television programmes.

Vodafone operates in telecommunications industry from broadband and mobile telephone where it is the leader. This can be classified as related diversification, where the development is within the similar industry.

Base in the case, there is an opportunity for TV industries to grow. Product development is basically delivering modified or new product to existing market, where in this case Vodafone can use product development by integrating to television industry to achieve competitiveness which then again categorized as related diversification.

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Due to this strategy, level of penetration rate might be low. Vodafone might include an additional bundling package to customer. Promotions package are offer to customer which might include phone, broadband, and television. Another thing is there will be an increase of competition in UK television industry, also more choices and variety to customers. Most importantly, by entering the television industry, Vodafone can utilize fixed line and broadband to integrate television to complete a total communication concept.

In short, Vodafone’s key technologies and resources is the telecommunications industries and licenses. To expand, Vodafone has many options one of them is to enter television industry as there is a big opportunity for TV industries to grow. Alternatively, they can also choose to moves beyond its current value system or industry, for example operates in transportation industry. This can be categorized as unrelated diversification.

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