Multimedia strategy: Three steps to take now to best prepare yourself for later
I am wrapping up my Strategic Management course this week and I have been thinking a lot lately about how it relates to the digital space and more particularly to multimedia development. Strategy involves a great deal of theories and frameworks, but how do you unpack those high-level concepts in order to be left with something actionable? We certainly need more strategy in our field, as I feel like we are always reacting from the past rather than strategizing for the future. Here’s my take at it – I’d love to hear your thoughts!
Strategy is still a relatively new field, as some of the original frameworks were developed in the 60s and 70s. Today, nearly all companies either hire outside consultants to perform strategic analysis of the firm and industry, or hire employees for positions such as business development. Simply put, strategy is how a firm attempts to beat competition and win in its industry. The strategic decisions made always have trade-offs, but these trade-offs are the key to potential competitive advantage.
Step 1: If debating whether to start a new company or enter a market, use the Five Forces framework
When examining an industry, analyze each “force” that affects the market. If they are low, there is high probability for success and vice-versa.
For example, strategists consider each force in the PC industry to be quite high because tablets and mobile devices are strong substitutes for the PC, the barriers to entry are low for PC development since components are standardized and you can distribute your product free via the Web, and there is high bargaining power for suppliers due to the powerful brands like Microsoft dominating the space. Thus, they argue that it would be unwise to enter the PC market.
Exercise: Try testing this framework out on the multimedia sector – are the forces high or low?