Media & Entertainment Industry in India - Porter's Five Forces Strategy Analysis

The Indian media and entertainment industry is one of the fastest growing sectors of the Indian economy. It has benefited from the economic growth and rising income levels in the country, and is in a crucial phase of transformation. The year 2006 was a good year for the industry and it was characterized by consolidation, realignment and growth in most segments of the industry. Further, the industry is expected to grow faster than India's GDP growth and consequently more expenditure is expected in media and entertainment.

Aruvian Research analyzes The Media & Entertainment Industry in India in Michael Porter's Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.