The Development of a Competitive Strategy for the Vidoe Production Studio

Video is one of the key marketing tools for most companies. The competitive environment plays a key role in determining the business success or failure. In order not only to survive but also to develop, the company must develop a competitive strategy that provides a market advantage. After 3 months of operation, the Form video production studio received negative feedback from a major client. This feedback made it clear to the owners that they had committed several managerial mistakes. The goal of this paper is to develop a competitive strategy for the video production studio. This goal can be divided into 7 objectives: existing approaches for a competitive strategy development review, the creation of a competitive strategy development methodology, market segmentation and criteria for selecting a target audience for each segment identification, the company’s resources and competencies analysis, the external environment analysis, a medium-term competitive strategy development, determining the direction for the long-term company development. The comprehensive market and company analysis uncovered a discrepancy between the real and required resources and competencies for successful market operation. Based on competitors’ and industry structure analysis, the company was offered a medium-term competitive strategy based on differentiation and aimed at increasing the convenience and efficiency of interaction with the company for the client. Based on trends in the macro environment and the company’s resources and competencies, the long-term strategy was developed. The firm is recommended to develop basic competencies in the segment of conversational video formats (online courses, interviews), and then enter the segment of more complex commercial formats (advertising, corporate videos, branded content). Compliance with the developed medium-term strategy can help the video production to take a stable competitive position. The long-term strategy will determine the managerial owners’ decisions regarding the development of video production, to contribute to the necessary competencies development to enter a new market segment successfully.