| Abstract: | The Channel 3 licence auction provides a classic case of a "make or break"strategy decision. For the Government, it was a mixed success – with successful companies carrying away valuable licences by making the minimum bids – although a fairly exacting test of the principle. For the companies, a world where cost control, and its relationship with quality, was of secondary importance became one in which a cost conscious culture could afford the players powerful advantages – both in winning a franchise and in profitably operating it afterwards. Positioning to survive and prosper in this new world often needs to start well before the make or break point. The key role is understanding the behaviour of competitors, governments and auctioneers or other parties involved. |
