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SWOT ANALYSIS ON Salem Communications

SWOT ANALYSIS ON Salem Communications

Discuss SWOT ANALYSIS ON Salem Communications within the Principles of Management ( P.O.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Salem Communications is a U.S. radio broadcaster, Internet content provider, and magazine and book publisher specializing in evangelical Christian and ...

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SWOT ANALYSIS ON Salem Communications
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Abhijeet S
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SWOT ANALYSIS ON Salem Communications - December 1st, 2010

Salem Communications is a U.S. radio broadcaster, Internet content provider, and magazine and book publisher specializing in evangelical Christian and conservative political talk radio. It owns 99 commercial radio stations, 65 of which are in the top 25 markets. Salem is the fifth largest U.S. radio station owner after Clear Channel, Cumulus, Citadel, and Entercom. The company focuses on acquiring radio stations with powerful transmitters, unlike most Christian broadcasters who tend to purchase many low-power translators. Salem owns slightly more AM than FM stations, and covers one-third of the U.S population.[1]

Salem Communications was founded by Stuart Epperson and Edward Atsinger III and, unlike many Christian broadcasters, is a for-profit corporation.[2] Also unlike their non-profit counterparts, Salem stations transmit high-powered signals in commercial radio bands.

Salem's CFO approximates that the company's income is as follows:

* 50% Teaching and talk stations
* 25% Christian contemporary music stations
* 15% Secular news/talk stations
* 10% Magazines and websites



Strengths

* Cost advantage
* Asset leverage
* Effective communication
* High R&D
* Innovation
* Online growth
* Loyal customers
* Market share leadership
* Strong management team
* Strong brand equity
* Strong financial position
* Supply chain
* Pricing
* Real estate
* Reputation management
* Unique products

Weaknesses

* Bad communication
* Diseconomies to scale
* Over leveraged fiancial position
* Low R&D
* Low market share
* No online presence
* Not innovative
* Not diversified
* Poor supply chain
* Weak management team
* Weak real estate
* Weak, damaged brand
* Ubiquitiouegory, products, services

Opportunities

* Acquisitions
* Asset leverage
* Financial markets (raise money through debt, etc)
* Emerging markets and expansion abroad
* Innovation
* Online
* Product and services expansion
* Takeovers

Threats

* Competition
* Cheaper technology
* Economic slowdown
* External changes (government, politics, taxes, etc)
* Exchange rate fluctuations
* Lower cost competitors or imports
* Maturing categories, products, or services
* Price wars
* Product substitution
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