Vyp Swot Analysis

VYP is a production company based in the UK founded by Stephen Voddil and John Young. VYP currently commissions programs for major broadcasters such as BBC, ITV and Channel 5. The founders are experienced program directors and program makers and both used to work for TV broadcasters in the UK. VYP was established in 2004 with 12 employees, this has grown to 60 employees and VYP currently outsource routine TV production work to small specialized companies.

VYP currently offers production of the following programs:

1. Documentaries

2. Drama series

3. Scripted comedy

4. General entertainment.

2. Industry Background

The UK television market provides quality and original programs which are sought after across the world, specifically the drama

Rapid growth in demand has been experienced from developing markets with large populations such as China and Brazil. As a result of increased international sales, co-production has increased significantly.

An Increased demand in international sales and increased potential profits has resulted in an increased number of production companies entering the UK market.

While the USA is the biggest consumer of UK TV programs, it has different market dynamics such as that all US states have different time zones and that there are hundreds of TV channels available in the American market. Channel entry into the market is easy and there are no controls on the quality of the channel feed nor the quality of the program therefore it is easier to sell and market TV programs in the USA because of the larger market.

The UK on the other hand has one time zone and a few TV channels of which the first 5 channel spots are given to the major broadcasters such as BBC and ITV, regardless of the transmission service provider. The UK has lesser channels and broadcasters to sell and commission programs

Threats Opportunities

• Difficulty in raising Debt financing.

• IPR’s held by the broadcaster reduces future income.

• The company’s reputation is linked to the founders.

• There is a growing amount of re-commissioned programs which yield lower margins.

• Studio set takes long to set up.

• Reduction of program commissioning fees by BBC

• Produce a current affairs show for higher profits.

• Negotiate ownership of IPRs to increase income through international syndication.

• Introduce new program types e.g. animation.

• Hire graduates through a program for new graduates.

• Use the internet as a means to increase exposure for VYP.

• Allow key employees to share in profits.

• Co-production with international production companies to benefit from tax relief.

3.1 Porters Five Forces Analysis

Bargain Power of Customers: High

• VYP’s customers are very large broadcasting corporations, which gives the corporations high bargaining power.

• The Indie market is saturated.

Bargain Power of Supplier: Medium

• There is a large number of outsourcing companies that specialize in a variety of services.

• There is a large pool of actors and experienced directors to choose from in the