Firms’ Growth & Development is crucial for all businesses because they might lose the competition and their market share. There are many examples for that; one of which is in the sports media industry, specifically in the Middle East & North Africa (MENA) Region. Bein Sports Network has been covering the most important sports events in MENA since 2009. This growth has not occurred on the spot. From its launch as “Al-Jazeera Sports” in 2003, with one channel only, the network has worked hard in its growth and development strategies, both internal and external as our below explanation, which gave them the competitive advantage over the previous networks (competitors) that used to broadcast sports events in the same region, such as Orbit & A.R.T (Arab Radio & Television). It is truly a bright example for firms’ growth & development . Currently, Bein Sports has more than 20 professional sports channels. Besides, the network expanded broadly by adding new entertainment and sports channels, especially in the MENA Region, in Nov 2015. Thus, Bein has now more than 100 channels of different types & genres. To access the Timeline of Bein Media Holding Group, kindly click here to refer to their official website.
Firms’ Growth & Development : The Last 3 Chapters in the Fourth Part of Entrepreneurship 2016 Book:
We highlight this bright example of the growth of Bein Sports at an exceptional time, when the soccer fans all around the world are enthusiastically waiting for the amazing “El-Clasico” game between Real Madrid & Barcelona soccer teams, within the Spanish League (La Liga) next Sunday “Mar 01, 2020” at 2300 Hrs of the Arabian Standard Time (GMT + 3). Thus, all soccer fans in the MENA Region will tune their devices to Bein Sports to watch the game because it has the only broadcasting rights in this area. Besides, the aspects of firm’s growth and development are the focal points of the last three chapters in the last 4th part of Entrepreneurship 2016 Book, the 2nd book in your channel “Management with Merits – Manage to Prosper”. In fact, last session we started discussing the fourth part (step) in the book (entrepreneurial process), which was managing & growing the firm, by highlighting the 1st two chapters of it “marketing & intellectual property”. Besides, our previous sessions/videos have introduced this book, as well as discussed the 1st, 2nd and 3rd steps of the entrepreneurial process. To download the associated presentation in PDF with this post/video, kindly go to the video at YouTube and click on the appropriate link in the description section below the video.
Firms’ Growth & Development : Concept & Types of Growth:
The book defines growth as the sustainable growth at which firms generate more revenues and profits over a sustainable period of time, such as the above mentioned example of Bein Sports. Besides, the book states 2 primary strategies for growth, which are internal and external. Internal growth means firms’ reliance on its own resources and competencies to grow. On the other side, external growth includes all methods that firms’ collaboratively use to grow via other companies, such as franchises, joint ventures, strategic alliances, mergers and acquisitions etc.; each of which has its own advantages and disadvantages. Thus, each firm must choose the most suitable methods as per their conditions, industry and environment. In our example above, Bein Sports has used collection of both methods. For example, adding new sports channels within the network falls within internal growth, while acquiring the sports business of ART in 2009 demonstrates external growth. Therefore, to assist firms in making the best decision regarding the most suitable growth method for them, the book provides two great tables that show the advantages and disadvantages of both internal & external growth, which are reproduced below. In addition to that, another reference that we utilize in our channel “Principles of Marketing 2016 by Kotler & Armstrong” which we highlighted before in the last session (Marketing & Intellectual Property), states one of the most popular tools for growth management & strategies in businesses called “Internal/External Growth Matrix/Grid”. It highlights four different strategies for growth depending on both markets (current/new) and products (current/new) as illustrated below.
Franchising : An External Growth Strategy
Franchising is one of the external growth strategies. However, the book has assigned a full chapter for it due to its popularity and importance. The book defines franchising as a method at which a company (franchiser) licenses its trade mark or any aspect of intellectual property, as well as its business method, to another company (franchisee) for the exchange of an initial franchising fee and an ongoing royalty. Examples of franchising are the popular fast food American restaurants all around the world, such as McDonald’s and KFC, given that the mother companies in the U.S.A. act as franchisers to other smaller firms “franchisees” all around the world. To clarify how franchising occurs, the book provides a procedure that explains franchising steps as per below.
End of Entrepreneurship 2016 Book, the 2nd in the Channel:
That was our session for today. Thank you so much for watching and following us. This session concludes this book “Entrepreneurship 2016”, the 2nd book in the channel, within the service of global managerial and leadership English books, 1st year program. We would like to remind you here that the previous (1st) book we finished in the channel was Management 2015 Book. Therefore, next book (the 3rd in the channel) is “Organizational Theory, Design & Change, 2013, 7th Edition”, which has been introduced before in a previous post.
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