R&D into demand, fashion and technology gives companies the opportunity to compete successfully on this market. Apart from that R&D of minor improvements is essential: polls, premium rate phone lines and etc. Technological factors have high impact upon the TV industry as most of the innovations bring either cost cuts or service improvement. This leads companies like Carlton and Granddad towards adapting changes in the battle for consumer. Political and legal Political environment is highly important for TV companies as it provides government legislations, licenses, quality standards and other governing information. Ann-monopolies legislations and Competition Commission suggest the maximum Management, 1994).
As in the case of Granddad and Carlton Competition Commission revealed that the combined group would have about 54 per cent of the television advertising market. This was the reasons why planned merger between the TV companies Carlton and Granddad was referred for a full Competition Commission inquiry. Environmental protection laws imply certain rules on the corporate social responsibility of the companies. Taxation policies direct companies to pay high corporate taxes from profits. Due to this reason several companies donate proportion from their profits to charities, which decreases the amounts charged. Foreign trade regulations have significant impact upon the TV companies because the distribution and sales of content take place both inside and outside the I-J.
Government laws affect operations of Carlton and Granddad: content, advertising space, advertising price, employment issues and etc. Social Social (cultural) environment consist of “institutions and other forces and affect society’s values, perceptions, preferences and behaviors” (Kettle et. Al, 1999). The fact, that Britain’s population is aging (Heartwarming, 2000) affects TV companies as they need to adapt the content of their programmer according to the tastes and emends of ageing population. Increased level of educations affects the consumer preferences, which requires TV companies to conduct continuous research for new information and entertainment products. Change in lifestyles requires TV companies to be adaptive. For example offering of home shopping.
Social responsibility affects Carlton and Granddad in terms of recruitment policies, environmental policies and other business ethics. The growth in single-person households, and working women influence the assortment of programmer and films that TV companies need to place on offer. Economic Economic environment is presented by the “factors, which affect consumer buying power and spending patterns” (Kettle et. Al, 1999). Interest rates affect TV industry, as when interest rates rise people spend less and when interest rates fall spending levels increase. This have the influence on the sponsors of TV programmer, which select the optimal time for their commercials to be shown. Receive from the advertisers.
Level of unemployment in the country also affects the advertisers which select to advertise certain products or services, thus alter the amount TV companies receive. Level of disposable income also influence spending pattern. Availability of resources alters the costs of TV companies. Environmental Increased cost of energy and other resources have significant impact upon the TV companies, which forces them to search for the cheaper options and increase the price for advertisers. Despite the fact that TV transmission has almost no effect on pollution and natural resources used TV sets produces some radiation. Industrial Due to the fact that Carlton and Granddad are producing untouchable products – industrial factors do not have influence upon these companies.