Analysis of Competitive Environment of CNC

Analysis of Competitive Environment of CNC

Throughout the world media development trend, the world media structure and its management environment is occurring unprecedented adjustment and reform, which brought both huge challenges and new opportunities for newborn CNC international operations.

The Development of New Media Provides Broader Market Space for International Communication

The emergence of new media, which is represented by network media and hand-held terminal, brought about a great revolution to the global media industry, and it provides greater market space for International communication.

In the past two years, the most noticeable network media development is the rapid popularization of socialized media, including social network and micro blog. For example, in February 2004, Facebook was formally pushed forward, and it has more than 500 million active users by July 21, 2010 (Shejiao.com, 2010).

The cell phone is the most influential device of hand-held terminals. In recent years, the total amount of cell phone users is expanding rapidly. The main media phone features include: short messaging service (SMS), multimedia messaging service (MMS), mobile phone news, and mobile phone TV, etc., especially with the development and maturity of the mobile phone TV technology, mobile phone TV has more obvious influences on traditional TV because of its portability and timeliness.

The number of new media audiences is growing rapidly, it not only extend the influence of International communication, but also provide more market space for the International communication.

The Global Financial Crisis Change the Strength Contrast of the Chinese and the Foreign Media

Under the impact of the financial crisis, many western media management have been severally affected. In the U.S., for example, since 2008, 200 newspapers and 500 magazines have stopped publication, and several newspaper groups declared bankruptcy or filed for bankruptcy protection. Many famous International media have to resell to others because of their heavy losses, including the well-known “Business Week”. On August 2, 2011, the USA Harman International group bought this old brand for one dollar.

Since China has less financial crisis impact than the developed countries, and it has faster recovery speed than them, global financial crisis has smaller influence on Chinese media industry. As a result, Chinese media industry suffered slight impact. In other words, the financial crisis brought subtle change for the strength contrast between Chinese media and foreign media, which provides new opportunities to Chinese media to improve international business management ability.

The Fallen Cost of International Communication Operation Will Strengthen the Construction of Overseas Positions

In the new media era, people can send his message to every corner of the world by depending on modern communication techniques. In some places where have no reporters, the common people can also gather news

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information. This will ensure news organizations have the first-hand reports when any place of the world produces major news. In western countries, where labor cost are expensive, free “citizen journalists” create amazing market value.

On the other hand, under the impact of financial crisis, developed countries experienced sever demand atrophy, commodity price decline, rising unemployment rate, which lead to consumption level and labor cost decrease. This situation is very good for the construction of international communications positions, especially good to overseas expansion of network communication, including construct additional overseas branches, absorb overseas collecting-and-categorizing talents, update technology systems and equipment, etc.

Development Space Become More Saturated

From Cable News Network [CNN] to CNC, the development of international television news has become saturated. At present, the well-known multinational news channel has amounted to more than 10. For a person who wanted to know the international news, the existing news channels are beyond the need. In some countries especially in English speaking countries like the U.S. and England, there are dozens of English TV channels can be chosen. From the market supply and demand aspect, it is a fact that supply has exceeded demand in news television channel market. Moreover, private TV channels leading by Chinese news have had a satisfied development, and it also add some pressure to CNC business.

Strict Industrial Regulation

The ideology characteristic of culture causes the wary of entry of Chinese media in some western countries who usually make invisible policy barriers to prevent and exclude Chinese media in quite long time. Even in the seemingly open media industry of USA, the government also makes many restrictions on the entry of foreign media. These ideological barriers have brought a lot of resistance on Chinese media’s operations oversea.