Global Business Strategy

Introduction

     The interview of Philip Dauman, from Digital Hollywood, provides a unique insight into the entertainment business world. He provides honest, down-to-earth advice that translates into the entire business community. Three main topics are transpired from the interview: the brand portfolio, marketing, the economy and the issue of Internet piracy.

     Philip Dauman is the president and chief executive officer of Viacom Incorporated. Viacom, Inc. “engages audiences on television, motion picture and digital platforms through many of the worlds best known entertainment brands.” Many of the popular brands on television including MTV, VH1, Comedy Central, Nickelodeon, and Paramount Pictures are products of Viacom, Inc. Viacom runs “approximately 160 channels and more than 400 online properties in 160 countries and territories” proving the global impact that Viacom has across the globe. Philip Dauman has been involved with Viacom since 1987, serving in multiple capacities.

Portfolio of Brands

     In the beginning of the interview, Philip Dauman expresses the importance of maintaining a strong portfolio of brands that creates a healthy portfolio of assets and those brands create and maintain a healthy relationship amongst each other in the portfolio. Viacom’s brands create value amongst each other by utilizing the viewership.

     The brands are intended to create value for the company and that will in turn continue to grow the company. When the value is demonstrated, the company will be placed into a stronger strategic position. More options are brought to the table as collateral when creating partnerships. When the strategic position is positive and a good set of assets is acquired, the ability to outlast economic fluctuations is solidified.

Marketing Integration

     An important point is the creation and preservation of relationships, both to the competitors and partners as well as the consumer. Integrated marketing strategies that add value to all partners and add value to strategic partnerships. By integrating marketing campaigns, brands have the exposure to new demographics and the chance to create a syncopated relationship with the other brands in the category. Integration also assists in creating ubiquitous brands that will compete globally. Integration continues through the utilization of the Internet. An Internet presence will only serve as an additional vehicle to expose your brand to the consumer.

Economy

     The economy, at the time of this writing, is in recession and poses other threats to the establishment and preservation of entertainment brands. If following the prior two points, the company will be in a better position to ride the waves of economic insecurities. Philip Dauman states in the interview that the economy is “never as bad as it seems.” (Media Summit, 2009) The psychological impact of economic recession is greater than the actual recession itself.

When addressing the economy in both peaks and troughs, it is imperative that a company constantly analyzes and if necessary, redirects, the company’s business plan. By continually assessing the situation, the company will be able recognize and reorganize to address issues that arise. This point cross-pollinates into the other parts of the organization.

Piracy

     The Internet has created a unique problem to entertainment business. The issue of piracy is a serious detriment to the profits of entertainment-based companies. While the interview with Philip Dauman does not directly address the issue, Viacom, Inc. is in the beginnings of a legal battle with Google, Inc. The litigation is based around the issue of piracy and the maintenance of

Intellectual property. For Viacom, the piracy issue is illegally hosted and distributed television programs and Paramount movies through the Internet. All creative and administrative parties deserve and expect to be paid for the products and services provided. The solution has yet to be found. However, Viacom has begun discussions with distribution companies and partners that could make Internet distribution profitable. By syncing services the possibility of erasing the want, or need, to solicit illegal materials may be solved using subscriptions that are rolled into current offered services.

Conclusion

By firmly protecting and maintaining a company’s brands, integrated marketing with in all elements of technology, and creating strategic partnerships a company will solidify its position and add value to its brands. Creation of a stronger product or service that is in high demand by the consumer will then add economic stability. 

References

Media Summit 2009. (2009, March 18). [Keynote speaker, Philip Dauman]. Video retrieved from the Digital Hollywood web site:             http://www.digitalhollywood.com/09MediaSummit/Media09KeynoteThree.html