Research On The Development Strategy Of China's TV Industry Based On The Value Chain Reconstruction

Up to now, China's TV industry has had a history for more than 10 years, and the industrialization has become a universal feature of the China's TV development and become popular all over the state. But in reality, there are still many problems in the China's TV industry's main competitors—the TV industry groups. It is necessary for China's TV industry groups to re-scrutinize their own value chain, and construct a competitive strategy to maintain long-term competitiveness when the fore-mentioned deficiencies are taken into consideration. However, at present, it is still at the beginning for China's TV industry groups to understand the value chain, and the value chain management practice also emphasis only on one or two sectors, which would leads to an ineffectively connected value chain and the competitive strategy which is based on the value chain would be digress, ineffective and short-sight, consequently.In essence, the current competition in the TV industry equals to the competition in the value chain. Therefore, the TV industry strategic management aims at coordinating, expanding and optimizing the value chain which exists among different market take-parts, such as the audience, the programmer-makers, the advertisers and so on. Unfortunately, most of the researches in this field which focus on the related concepts, principles are just qualitative analysis, lacking a profound understanding and awareness about the forming mechanism and the characteristics of television industry groups'value chain. As a result, there is not precise definition about the television industry groups' value-added phases, let alone an effective management and an effective competition strategy.In view of these points, this paper starts at the research about to the value chain management and reconstruction in the TV industry, explores the general framework for the television industry competitive strategy designing, which is based on the TV industry's value chain management, with a method of TV industry's value chain management and reconstruction decision-making, and propose a general strategy for China's TV industry to compete, in combination with the characteristics of China's media industry. It not only helps us to examine and evaluate the TV industry's development strategy objectively, but also plays an important role in helping us to analyze the characteristics, models of China's TV industry and various practical problems as well..The TV industry is a content industry in essence, mainly engaged in the production, reproduction and dissemination of the context. Hence, the production of the television programmers plays a fundamental and critical role in the TV industry. TV industry'value chain begins at the TV schedule, then the production of the programmers, and then the broadcast and distribution of the programmers, and the last the audience's watching. And the production, broadcast, advertising is a strategic link in the value chain. For the TV industry, its value system is complex because its product line (Channel series, Web site) covers different market segments and even different business areas. The research on TV value chain helps us keep the horizontal integration and vertical integration in control, which exist in industry groups and different media products, integrate the basic value chain within the industry groups from the perspective of the overall strategy. As a consequence, the connection between the activities in the value chain would become closer and a structure competitive advantage for the TV industry groups would be found at last.This paper holds the idea that the TV industry group'new types of value chains includes the basic value chain, extending value chain, expanding value chain, virtual value chain and the networks of the value. The basic value chain, namely, the traditional TV industry group's value chain, is the main source of the television industry groups'profits; the extending value chain which extend in the basis of the basic value is the vertical extension of TV industry groups around its main industries, and is a further development of the strategic phases in the basic value chain. the basic value chain is based on the extension of all is a basic value chain; the expanding value chain which spring up in accompany with the new technologies, the Internet economy and the e-commerce and is formed as a result of the horizontal integration, is a strategy taken by the TV industry group to explore new business areas and find a new profit growth point in a dynamic environment; virtual value chain, based on the basic value chain, is formed when the TV industry groups re-organize and arrange their internal value activities to identify sources of competitive advantage, with the help of the information technology and the Internet; the networks of the value is the relation and the structure of the value's production, distribution, transfer and use, which is caused by the mutual influence between the television industry groups and stakeholders. Different value chains play different roles in the value's production, and all of the value chains working together will form a resultant force, and make the television industry groups have a more powerful competitiveness.The reconstruction of TV industry value chain necessarily requires corresponding strategic choice and in reverse the re-design of competitive strategy also affect the reconstruction of value chain. Based on the research value chain and the interaction between the competitive strategies, this paper puts forward the competition strategy model of Chinese TV industry which is founded on the reconstruction of value chain.According to this model, the television industry groups should take the appropriate competitive strategy in different value chain level. For example, at the basic value chain level, the television industry groups can adopt the general competitive strategy based on low-cost, difference or centralization; at expanding the value chain level, the television industry groups can adopt integration competitive strategy; in the extending value chain level, the television industry groups can adopt diversification competitive strategy which focuses on enterprise core competence; at the virtual value chain level, they can choose outsourcing strategy, and at the value of network level, the television industry groups can adopt "compete and cooperate" strategy to achieve a "win-win" state.This paper research over the strategy model of the Chinese TV industry competitive, based on the value chain over the reconstruction, and research over the value chain and competition between the strategic relationship through the 30 domestic television industry groups questionnaire survey, Using the cluster analysis and variance analysis. At the same time, a different competitive strategy of the TV industry's performance of differences, and the empirical findings show that the value chain and competitive strategy model, the value chain and strategic competition between the TV industry there are indeed significant relationship, different competitive strategy to impact the performance have significant differences. All of this proof that the theoretical model is reasonable.