The Fashion Channel Case Analysis

The Fashion Channel Case Analysis

Situational and SWOT Analysis

The Fashion Channel is a network dedicated to fashion twenty-four hours a day, seven days a week. Since it was founded in 1996, it has successfully achieved profit growth above the industry average rate and steady revenue. TFC reaches more than 80 million households in the United States, and targets a wide variety of demographics, specifically, viewers between the ages of 35 and 54.

Impressed by The Fashion Channels’ success, other markets such as CNN and Lifetime started adding fashion related programming to their networks, becoming a threat to TFC. Currently, TFC customers’ satisfaction is low and revenues are projected to decline. The Fashion Channel must implement a new strategy for segmentation and advertising to attract more viewers to increase ratings and revenue.

Strengths:

• TFC is the only network dedicated to fashion 24/7.

• The channel appeals to women between the ages of 35 and 54.

• TFC is included in the basic cable package that is in approximately 80 million households.

• It is a unique market.

• TFC has achieved full penetration of available households.

Weaknesses:

• By only showing fashion related programming, it is not a diversified market.

• TFC grew too quickly and did not develop a detailed segmentation, branding, or position strategy.

• Some of the members of the leadership team are resistant to change.

• TFC does not target any specific viewer segments.

• Customer satisfaction is declining

Opportunities:

• Advertisers are willing to pay more for higher rating and defined demographic programming.

• There is more room for viewership for fashion specific programming.

• Viewers’ demand on advertisement and network content could hold or increase the cost of advertisement.

Threats:

• There are other competitive channels such as Lifetime, CNN, etc.

• Niche networks only get $1 per subscriber.

• Cable companies may drop TFC from the basic cable package if customer satisfaction does not improve.

Assumptions and Missing Information

We can assume that the Fashion Channel