Radio Corp. owns a leading radio network with 200 million weekly listeners. To combat a declining radio audience, the company has implemented a strategy of targeting the Hispanic audience. After careful analysis, Radio Corp. makes the decision to acquire a Hispanic radio station, rather than convert existing radio stations. The acquisition strategy benefits from rules that allow clustering of ownership of local radio stations. The basis of the strategic initiative and the basis of the acquisition strategy, respectively, are:
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A. B. C.C
The strategic initiative of Radio Corp. is to target the Hispanic audience in order to combat the declining radio audience. This means that the company wants to focus on attracting and retaining Hispanic listeners specifically. By doing so, Radio Corp. aims to tap into the potential market and increase its audience base.
The basis of this strategic initiative is demographics. Demographics refer to the characteristics of a specific population, such as age, gender, income, and ethnicity. In this case, Radio Corp. has identified the Hispanic audience as a target demographic based on their unique characteristics and preferences. The company recognizes that the Hispanic population represents a significant portion of the overall population and has specific cultural and language preferences. By catering to this demographic, Radio Corp. aims to attract more listeners and increase its market share.
Now, in order to implement this strategic initiative, Radio Corp. decides to acquire a Hispanic radio station rather than converting existing stations. This acquisition strategy is based on regulation. The question mentions that the acquisition strategy benefits from rules that allow clustering of ownership of local radio stations.
Regulation refers to the laws, rules, and policies imposed by governments or regulatory bodies to control and govern various industries. In the case of Radio Corp., there are regulations in place that allow for the clustering of ownership of local radio stations. Clustering of ownership refers to the consolidation or acquisition of multiple radio stations in a specific geographic area by a single entity.
By acquiring a Hispanic radio station, Radio Corp. can effectively tap into the Hispanic market as the acquired station already has an established presence and audience within the target demographic. This strategy allows Radio Corp. to quickly gain access to the desired audience and leverage the existing infrastructure and expertise of the acquired station. The regulations supporting the clustering of ownership facilitate this acquisition strategy by providing the necessary framework for consolidation in the radio industry.
Therefore, the basis of the strategic initiative is demographics (C. demographics), and the basis of the acquisition strategy is regulation (C. regulation).