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Sesame Workshop and International Growth With more than 30 years of existence on the American market, Sesame Workshop achieved significant success in many other countries worldwide. By 2001, Sesame Street childrens educational show being either original or locally produced version was acclaimed in more than 150 countries. Although the common opinion of Sesame Workshops management regarding international opportunities was optimistic international revenue of 2001 represented 20 % of total revenue. In addition, the process of capitalization on the external market opportunities of Sesame Workshop has to balance between companys mission, which is to educate children globally, and viable financial infrastructure of the organization. Therefore, efficient strategies must be developed and actual tendencies reconsidered. Sesame Workshops mission is supported by organizational core values, in particular innovation, optimism, knowledge and diversity.
From the critical point of view, diversity value of the company impacts financial opportunities of Sesame Workshop in various developing countries. One of the main financial objectives of the company is to assemble private and public funding partnerships to support education initiatives. Although the described financial strategy was considered to be successful in the development and production of Israeli/Palestinian Sesame Street, it is likely to fail in the majority of developing countries like Albania, Ukraine, Turkmenistan, and etc. according to various business development analysts (Mills, 18). The main reason for potential failure is the lack of governmental support and investment taxation systems of the partnerships. Sesame Workshops financial strategy also includes numerous revenue-generating tools such as product licensing, distribution of local language adaptations, magazine publications and interactive software.
Although these self-generating revenues constitute about 80 % of the cost of Sesame Street, they are available in conditions of considerable brand awareness of companys audience. Therefore, the efficacy of self-generating financial strategy is limited to developed countries, and under these conditions diversity core value is neglected (Mills, 18 - 19). In Sesame Workshops era of international growth co-production market-entry decisions are initiated by a broadcaster, which is interested in the show. Typical issues companys management considers are the level of television penetration, relationships at the governmental level, financial viability of the market, and local production infrastructure. Simultaneously, the co-production process includes the product development strategy, brand establishment and market research and usually lasts up to four years to launch a television show. Many business analysts indicate that Sesame Workshops management underestimates the potential and contemporary role of commercial channels in developing countries and countries with transitional economy, which have the opportunities and qualifications to improve and accelerate the process of co-production (Mills, 19).
From the contemporary point of view, Sesame Workshops international development strategy should include the following elements: execution of product standardization strategy for developed countries; complete product differentiation strategy for developing countries as well as countries with transitional economies; development of proper resource allocation models in accordance with project sizes and duration; establishment of flexible investment criteria, depending on mission, management time involved, cash flow, return-on-investment analysis, etc; reconsideration of commercial-free philosophy, namely incorporating of satellite and cable channels into companys overall strategy, specifically in developing and transitional countries; development of alternative product line other than Sesame Street; introduction of small projects for small countries as a part of market penetration and subsequent marketing research. Under the conditions of rapid international growth company should stay aware of overextending of own resources and capabilities. Therefore, financial status and mission consistency should be given primary attention. In particular, financial position of the company should be tracked through careful monitoring of cash-flow statements and evaluation of investment criterion in every case. Mission consistency should be executed within the analysis of brand awareness and recognition performed by Sesame Workshops audience in every country. Bibliography Mills A. (2002) Bottom Lines.
Broadcasting & Cable. New York: Vol. 132, Iss. 33
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Research essay sample on Sesame Workshop And Growth
