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Stingray Group Inc. What are the key findings from the SWOT?…
Stingray Group Inc.
What are the key findings from the SWOT?
prioritize the findings from the SWOT. Based on these priorities, develop your recommendations, including an implementation plan. These are strategic recommendations. Do not recommend tactics. For example, it should take 18 months to three years to implement your recommendations. Please include all of your assumptions. And then finish with the conclusion.
SWOT
Strengths
Subscriptions for Subscription Video On Demand (SVOD) has increased 36% since Q4 2022 (Stingray Group Inc., 2022).
“Unique and diversified world leading music and video service provider” (Stingray Group Inc., 2022).
“Strong and predictable cash flow from long-term contracts and client relationships” (Stingray Group Inc., 2022).
“A leader and innovator in the digital music space” (Stingray Group Inc., 2022).
“Track record of successful acquisitions and integrations” (Stingray Group Inc., 2022).
Weaknesses
Struggle to maintain their corporate culture, potentially resulting in a loss of innovation and less focused teamwork.
Depend on key personnel to operate the business due to the inability to retain and/or attract qualified personnel.
Opportunities
Putting more emphasis on digital services, such as mobile apps.
Collaborating with other companies.
“Develop as-based product offering to enter new markets and access new platforms” (Stingray Group Inc., 2022).
Develop more video apps, web-based solutions, and mobile apps (Stingray Group Inc., 2022).
Expanding their business services reach internationally (Stingray Group Inc., 2022).
Threats
Stingray Group’s June 7, 2022, Annual Information Form has a section dedicated to the risk factors the company may face. They have listed many potential risks; however, many more could arise in the future (Stingray Group Inc., 2022). The following are the risks outlined in the Annual Information Form (Stingray Group Inc., 2022):
We pay royalties to license music rights and may be adversely affected if access to such titles are restricted or if such royalties are increased; our business may be influenced by the pricing models of content owners
The radio broadcasting industry is subject to tariffs
Our business depends in large part upon Pay TV providers, whose payments to us are dependent on the number of Pay TV subscribers
The audio and video entertainment industry is a rapidly evolving market, which makes it difficult to evaluate our current business and future prospects
We face, and will continue to face, competition from other content providers and that competition is likely to increase over time
Our radio business depends in large part upon advertising revenue
We face many risks associated with our long-term plan to expand our operations into international markets
We have grown rapidly and are seeking to continue our growth. If we do not effectively maintain and manage our growth, our business, results of operations and financial condition could be adversely affected
There are risks associated with our various acquisitions, business combinations and joint ventures
We rely on third parties to provide hardware, software and related services necessary for the operation of our business
We depend on key personnel to operate our business, and if we are unable to retain, attract and integrate qualified personnel, our ability to develop and successfully grow our business could be harmed
We may be adversely affected by exchange rate fluctuations
We may be adversely affected by economic and political instability in emerging countries where we operate
The royalties that we pay are calculated using alternative methods
Rapid technological and] industry changes could make our products and services obsolete; our success will depend, in part, on our ability to develop and sell new products and services
We may need additional funding for our business plan and additional financing might not be available
Failure to continue to generate sufficient cash revenues could materially adversely affect Stingray’s business
We rely on our current credit facilities and subject to certain covenants in connection therewith
Costly and protracted litigation may be necessary to defend use of copyrighted content
We may be unable to protect our proprietary technology or we may incur substantial costs as a result of litigation or other proceedings relating to protection of our proprietary technology
If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork and focus that contribute crucially to our business
Unfavorable economic conditions may affect our business and financial results
The locations of the Corporation’s users expose us to foreign privacy and data security laws and may increase our liability, subject us to non-uniform standards and require us to modify our practices
Piracy is likely to have a negative impact the potential revenue of the Corporation
Our business is subject to the risks of natural catastrophic events and to interruption by man-made problems such as computer viruses or terrorism
Pandemics, epidemics and other health risks could have an adverse effect on our business.
We could be subject to additional income tax liabilities
Our reputation may be negatively impacted, which could have a material adverse effect on our business, financial condition and results of operations
We may be adversely affected by litigation and other claims
We may be adversely affected by credit risk
We may be adversely affected by liquidity risk
Failure to comply with CRTC requirements could damage our business
The CRTC may not maintain or renew our licenses, which could force us to discontinue operations
We operate in the radio broadcasting industry, which is a regulated industry
Fees payable by us may increase
Government regulation of radio, TV broadcasting, telecommunications, the Internet and e-commerce is evolving and unfavorable changes could harm our business
The price of the Subordinate Voting Shares and Variable Subordinate Voting Shares will likely fluctuate significantly
The Principal Shareholders have significant influence with respect to matters put before the shareholders, which may have a negative impact on the trading price of the Subordinate Voting Shares and of the Variable Subordinate Voting Shares
Future sales of Subordinate Voting Shares and Variable Subordinate Voting Shares by the Corporation’s Principal Shareholders, directors, executive officers and senior management could affect prevailing market prices of the Subordinate Voting Shares and Variable Subordinate Voting Shares
If actual cash flow results are different from expectations, there can be no assurance that we will continue our dividend payments at the current expected levels
If securities or industry analysts do not publish research or reports about the Corporation, if they change their recommendations regarding the Corporation adversely, or if the Corporation’s operating results do not meet their expectations, the share price and trading volume could decline
The number of Subordinate Voting Shares and Variable Subordinate Voting Shares the Corporation is authorized to issue is unlimited (Stingray Group Inc., 2022 ).
These risks can be separated into three categories: risks related to the business, risks related to regulatory matters, and risks related to the ownership of subordinate voting shares and variable subordinate voting shares (Stingray Group Inc., 2022). Steps can be taken to try and mitigate these risks, but that does not mean these risks will disappear .
