ABSTRACT
The goals of gaining a competitive advantage and increasing profitability are quite challenging for media firms, which constantly have to wrestle with their social responsibilities, regulatory concerns, technological advances, and changing consumer preferences. Historically, these media firms’ attempts to analyze, plan, and implement strategies in response to environmental changes have been largely presented descriptively in media management literature. For example, most have acknowledged that terrestrial radio stations have started delivering programming products online, but few have investigated the drivers behind these strategic decisions. It is also well documented that nearly all television networks have invested in joint ventures with Internet-based firms, but what factors contributed to such alliances and what kind of partnerships produce a sustainable competitive advantage? Many of these managerial decisions are a result of the dynamic relationship between a media organization, its environment, and its attempt to develop and implement activities that align its organizational resources with environmental changes. And how our media environment has changed in the last 20 years! The previous chapter depicted this magnitude of change with discussions on the additions of new media, media outlets, and distribution systems; trends in consolidation and convergence; and alternative business models in today’s media marketplace. Under such a dynamic environment, media managers have to be proactive, anticipate change, and continually refine their strategies to stay competitive. Accordingly, it is essential for media scholars to go beyond the mere synthesis of current industry practices and examine the antecedents and
predictors of certain firm conducts. Such an emphasis on developing and testing theory-based propositions offers a better contextual explanation of the firm and the linkage between strategy and superior performance in this particular sector.
