A Macro and Micro Environmental Analysis

Introduction

Technological advancements and the development of the internet have led to the development and improvement of multiple media channels and outlets making the media industry one of the most blossoming industry in the 4th industrial revolution. Schwartz (2018) highlights that developments in recent and emerging technology have affected how people communicate learn and work and continue to provide endless opportunity for technological advancements in the media and entertainment industry. According to BBC (2021), the media industry can be defined as a varied collection of organizations that share in the production, publication and distribution of media texts and visuals. The industry includes an amalgamation of broadcasting and entertainment media including radio and television broadcasting as well as music and filmed entertainment, Media agencies such as advertising companies, public relations and marketing services as well as publishers such as print and electronic media (Schwartz, 2018). With continued advancements in technology these different types of media are effectively advanced and upgraded to be more efficient and effective in mass and individual communication. In addition, the continued development and advancement of the industry leads to the development of employment and new revenue streams making is a significantly promising industry. This essay aims to evaluate the attractiveness of this industry through evaluating the Macro environment of the media industry across the globe as well as the internal environment to highlight specific advantages and its subsequent potential.

Macro environment

The study undertook the macro environmental study of the media industry through the application of the PESTEL analysis technique.

Political Environment

The media industry is one of the very few industries that are impacted by a nation’s political environment. This is largely due to the fact that the media is the first line of communication and information sharing across the world and that every individual has the right to express themselves in whichever manner they wish. According to the international standards of Media Regulations based on UNESCO.Org (2017) Universal Declaration of Human Rights (1948) proclaimed the right to privacy and the right to freedom of opinion and expression basically giving a free pass to the media industry to cover any and all issues of importance to the society without censorship. The media is considered to be a powerful tool in the management of different aspects of the society including the economy and political stability (Picard, and Lowe, 2016). This makes it a significant and wide industry in almost all countries across the globe and as such attractive to develop a career in.

Economical Environment

The media industry is one of the most blossoming industries economically across the globe. While technological development has led to the slowdown of print media leading to significant losses in the publishing industry, it has also led to the development of new forms of media such as e-books, online advertising as well as music and video streaming which are contributing significant amount of revenue to the industry and the economy (Omar, 2013). Technological development has also made it easier to acquire information via a wide range of media channels for instance through informative video, YouTube tutorials as well as teleconferencing which enhance telecommuting (Straubhaar et al., 2013; Silverstone, 2017).

According to Desjardins (2017), the media impacts the economy in three main ways; through democratization of information, through the development of platform economy and the development of new ecosystems for entrepreneurial advancement. With easier and faster information acquisition due to its free nature on social media and other media channel as a result of information democratization, the world is seeing faster and more efficient innovation of products and services which further contribute to enhancing economic development. The media industry, especially social media sites such as YouTube, Instagram, and Facebook provide better and more effective ways of marketing products and services for instance through online Ads subsequently enhancing the growth of the platform economy. Such media sites and platforms further provide a new ecosystems for entrepreneurs to build off of and effectively enhance the economy.

Social Environment

The media industry is not only a key aspect of the social environment; it is the most important factor for enhanced social development. Media provides channels and outlets for communication and socialization among different individuals and must be adherent to the set social cultures and beliefs within a country. According to Fern Fort University (2018), the shared attitudes and beliefs of a population play a significant role in how different media industries and companies operate. These values define the parameters and regulations by which various media is to adhere to while at the same time shape the social environment and how different individuals interact with one another. However according to Silver et al. (2019) there are significant concern with regards to the impact of social media specifically on social norms and the society. A wide range of studies have shown a significant negative impact of social media and internet use. For instance social media can aid the spread of inaccurate news and information which eventually impact inefficient social reactions and actions that are detrimental to the society.

Technological Environment

The media industry is heavily reliant on the development of technology. With continued development and advancement of technological devices and processes, different activities and channels within the media industry are significantly impacted leading to variances in the cost and structure of the industry as well as its value chain. Technological advancements such as the development of mobile applications to aid the spread and sharing of information has made the industry more instant and impactful to other elements of the society and economy (Silverstone, 2017; Deb, 2014). For instance through the advancement of social media, the marketing and advertising sectors of the industry have been significantly revolutionized to enhance further reach and increased total revenue. Advertisements in the newspapers and magazines as well as Television and Radio have significantly been overtaken by online advertising and digital billboards as a result of technological advancements. Continued development of technology will as such continue impacting changes and upgrades within the media industry making it more effective and efficient in information sharing and influence.

Environmental Factors

The media industry is primarily for information dissemination and sharing of knowledge. Different media outlets have not only been adopted by different companies within different industries to enhance the spread of information on environmental conservation, but have themselves taken up strategies of enhancing environmental protection and conservation. According to Nyash (2014), different media platforms and channels, for instance broadcasters, entertainers as well as individuals on social media serve to bring people together and help them understand the common problem in environmental degradation as well as offer multiple solutions that can be adopted by everyone in minimizing and ultimately curbing environmental degradation through enhancing environmental conservation.

Further, the advancement of technology despite significantly impacting the publishing and printing press negatively as a result of reduced demand on physical books and increased demand of e-books and Audio books inadvertently helps minimize environmental degradation through deforestation for paper (Omar, 2013). The advancement of technology is hugely shifting all media activities and outlets to the digital technology and thereby enhancing environmental conservation. Given that huge amounts of data can be stored on very small devices with multitudes of space further enhance the minimization of space usage in library and the waste products in daily newspaper and other printing productions.

Legal Environment

According to Fern Fort University (2019) there is significant legal framework and institutions in almost all countries that are charged with controlling the content shared across different media sites as well as the protection of intellectual property rights. Different media firms should as such carefully evaluate how comprehensive their intellectual property rights are protected by the law as well as how far they can go with the freedom of expression before it is restricted by legal frameworks. Other legal aspects that may significantly impact the media industry regardless of the country of operation is the consumer protection and e-commerce laws to regulate marketing activities through media for effective protection of consumers against inaccurate information as well as discrimination and prejudice laws which may be enforced due to any inappropriate communications that aid in denying other individuals their rights or slandering others reputations.

The Macro environment of the media industry indicates not only the significance and importance of the media industry to the economy and society but also provides a deeper understanding of how the industry functions and its potential as an effective area for career development. A further evaluation of the internal environment of the industry will indicate its potential for success and adequate attractiveness as an effective industry to invest in, in the contemporary environment. The internal analysis is conducted via a SWOT analysis of the industry highlighting its strengths and the potential opportunities it has to offer.

SWOT Analysis

Strengths

The media industry has a wide range of significant strengths that impact its attractiveness and viability as an effective industry for investment. According to Gan (2012) the media industry is one of the most booming industries in the global economy as a result of its rapid and diverse development across the past decades. The media industry offers a wide range of career options including, presenters, producers, editors, entertainers, marketers and social media influencers. While established media companies such as TV and Radio stations require some level of experience and qualification from the various personnel who can work with them, there are a wide range of media outlets such as YouTube and music streaming websites such as Spotify where individuals can set up their own practices and effectively earn from it. As such media provides a wide range of career options to invest in.

Another strength of the media industry is its close tie to technology and technological development. According to Halbrooks (2019), advancements of technology lead to subsequent advancement of different forms, efficiency and effectiveness of media sites, channels and careers. For instance development of social media has impacted enhanced and highly effective and efficient marketing techniques and strategies as well as the development of revenue opportunities such as models and social media influencers. The media industry is also known for associated low costs of production and subsequent high revenues thereby making it a success guaranteed business venture.

Weaknesses and Threats

However the media also exhibits certain weaknesses that limit its attractiveness as an effective industry for investment. The industry is highly fragmented and lacks cohesion when it comes to content production and distribution. In addition the industry is not effectively regulated by significant government bodies leading to increased instances of misinformation especially with the social media platforms. Piracy and violation of intellectual property rights is also still a major problem and threat for the industry alongside lack of quality control for the content shared and uncertainties on account of rapid technological development (Gan, 2012).

Opportunities

Regardless, the industry still exhibits a multitude of opportunities that individuals can take advantage of for success and that enhance the attractiveness of the industry. Gan (2012) highlights that there is an increased interest of global investors in multiple media forms and channels which adds on to the future prospects of the industry. In addition a wide aspect of the digital media is yet to reach the entire globes population as only locations with access to internet can currently enjoy the services from the industry. This provides an effective gap in the economy for the industry. In addition new technological developments and innovation such as animations as well as distribution channels in mobile and internet open significant platforms and scope for the industry which is guaranteed to provide increaeed opportunities within the industries.

Conclusion

Ultimately the media industry is among the most influential industries in both the economy and culture of different countries within the world. The advancements in technology continue to enhance the industries development leading to the generation of new content and job opportunities to enhance the economy. In addition, the industry provides a wide range of options for virtually all individuals who are willing and able to invest in it. And given the significance of information sharing, analysis and usage in the contemporary social and economic environment, the industry is likely to continue holding significance in the global economy and therefore providing attractive opportunities for investments and career development.

References

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