Harvard Case - Sesame Workshop (A): Bringing Big Bird Back to Health
"Sesame Workshop (A): Bringing Big Bird Back to Health" Harvard business case study is written by Rosabeth Moss Kanter, Ryan L. Raffaelli, Jonathan Cohen. It deals with the challenges in the field of General Management. The case study is 24 page(s) long and it was first published on : Jan 17, 2017
At Fern Fort University, we recommend Sesame Workshop implement a multi-faceted strategy focused on digital transformation, content diversification, and strategic partnerships to revitalize its brand, increase engagement, and secure long-term financial stability. This strategy will involve leveraging technology and analytics to understand evolving audience needs, developing new content formats across diverse platforms, and forging strategic alliances with key players in the entertainment and education industries.
2. Background
Sesame Workshop, the non-profit organization behind the beloved children's television program 'Sesame Street,' is facing declining viewership and revenue, primarily due to the changing media landscape and increased competition from digital streaming services. The organization needs to adapt to the evolving needs of its target audience while maintaining its core mission of promoting educational and social development in children.
The case study focuses on the organization's leadership team, tasked with finding solutions to revive Sesame Workshop's brand and ensure its continued success. They must navigate the challenges of maintaining their educational mission while embracing the opportunities presented by the digital age.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand recognition and legacy: Sesame Workshop has a globally recognized brand built on decades of success and a strong reputation for educational quality.
- Proven educational impact: The organization has a long history of producing impactful educational content that has positively influenced generations of children.
- Non-profit status: This allows for flexibility in pursuing mission-driven initiatives and attracting philanthropic support.
Weaknesses:
- Declining viewership: Traditional television viewership is declining, particularly among younger audiences.
- Limited digital presence: Sesame Workshop has been slow to adapt to the digital landscape and lacks a strong online presence.
- Financial challenges: Declining revenue and increased costs threaten the organization's financial stability.
Opportunities:
- Growing digital market: The digital media landscape presents significant opportunities for reaching new audiences and expanding content distribution.
- Global expansion: Sesame Workshop can leverage its brand recognition to expand into new international markets.
- Strategic partnerships: Collaborating with other companies and organizations can provide access to new resources, technologies, and audiences.
Threats:
- Increased competition: The entertainment industry is increasingly competitive, with numerous digital streaming services vying for attention.
- Changing media consumption habits: Children are increasingly consuming media on mobile devices and through online platforms.
- Funding challenges: Securing funding in a challenging economic climate can be difficult, especially for non-profit organizations.
Porter's Five Forces:
- Threat of new entrants: High, due to the low barriers to entry in the digital media space.
- Bargaining power of buyers: Moderate, as consumers have a wide range of options for entertainment and educational content.
- Bargaining power of suppliers: Low, as Sesame Workshop has established relationships with content creators and distributors.
- Threat of substitute products: High, due to the availability of alternative entertainment and educational content.
- Rivalry among existing competitors: High, as numerous players compete for attention and resources.
Key Challenges:
- Maintaining educational mission: Sesame Workshop must ensure its content remains relevant and engaging while adhering to its educational goals.
- Adapting to digital landscape: The organization needs to develop a comprehensive digital strategy to reach new audiences and compete with other digital platforms.
- Securing financial sustainability: Sesame Workshop must find new revenue streams to offset declining viewership and ensure its long-term financial stability.
4. Recommendations
1. Digital Transformation:
- Develop a robust digital strategy: This should include a comprehensive website, mobile apps, and social media presence.
- Invest in technology and analytics: Leverage data to understand audience preferences, tailor content, and measure the effectiveness of digital initiatives.
- Create engaging digital content: Develop new formats like interactive games, animated series, and educational videos optimized for digital platforms.
- Partner with digital platforms: Explore partnerships with streaming services, social media platforms, and educational technology companies to expand reach and access new audiences.
2. Content Diversification:
- Develop new content formats: Expand beyond traditional television programming to include short-form videos, podcasts, interactive games, and educational apps.
- Target diverse audiences: Create content that appeals to a wider range of children, including those from different cultural backgrounds and with diverse learning styles.
- Embrace emerging technologies: Explore the use of virtual reality, augmented reality, and artificial intelligence to create immersive and engaging learning experiences.
- Collaborate with content creators: Partner with independent filmmakers, animators, and educators to develop innovative and engaging content.
3. Strategic Partnerships:
- Form alliances with educational institutions: Partner with schools, libraries, and other educational organizations to distribute content and promote educational initiatives.
- Collaborate with entertainment companies: Explore joint ventures with media companies to co-produce content and leverage their distribution networks.
- Seek philanthropic support: Engage with foundations and individual donors to secure funding for new initiatives and expand reach.
- Develop corporate partnerships: Partner with businesses to create educational campaigns and promote social responsibility initiatives.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations focus on leveraging Sesame Workshop's strengths in educational content creation and brand recognition while adapting to the evolving media landscape.
- External customers and internal clients: The recommendations address the needs of both children and parents, as well as the organization's internal stakeholders.
- Competitors: The recommendations consider the competitive landscape and aim to position Sesame Workshop as a leader in the digital space.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): While specific financial projections are not provided in this case study, the recommendations are designed to generate new revenue streams and increase engagement, ultimately contributing to financial sustainability.
- Assumptions: The recommendations assume that Sesame Workshop has the resources and expertise to implement these initiatives successfully.
6. Conclusion
Sesame Workshop faces significant challenges in the changing media landscape, but it also has the opportunity to leverage its strong brand and educational mission to thrive in the digital age. By embracing digital transformation, diversifying its content, and forging strategic partnerships, Sesame Workshop can revitalize its brand, engage new audiences, and ensure its continued success in promoting early childhood development for generations to come.
7. Discussion
Other Alternatives:
- Focusing solely on traditional television: This would be a risky strategy given the declining viewership and limited potential for growth.
- Merging with another organization: This could provide access to resources and expertise but could also compromise Sesame Workshop's independence and mission.
Risks and Key Assumptions:
- Implementation challenges: Implementing these recommendations requires significant investment and organizational change.
- Competition: The digital media space is highly competitive, and Sesame Workshop must be able to differentiate itself and attract audiences.
- Audience engagement: The success of these initiatives depends on engaging children and parents in the digital space.
8. Next Steps
- Develop a detailed strategic plan: This should outline the specific initiatives, timelines, and resources required to implement the recommendations.
- Create a dedicated digital team: This team should be responsible for developing and executing the digital strategy.
- Secure funding: Sesame Workshop should actively seek funding from foundations, corporations, and individual donors to support its digital initiatives.
- Monitor progress and adjust as needed: The organization should regularly assess the effectiveness of its initiatives and make adjustments as necessary.
By taking these steps, Sesame Workshop can successfully navigate the challenges of the digital age and continue its mission of educating and inspiring children around the world.
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Case Description
Sesame Workshop was transforming in 2016. CEO Jeff Dunn had reorganized and shifted the iconic institution to respond to digital disruption and a consensus culture. This case examines his efforts to turn Sesame Workshop around. It notes Sesame's storied history and the underlying financial troubles that Dunn confronted upon taking over in 2014. It shows how Dunn's leadership changes, increased communication, new partnership deals, and a focus on digital, sought speed, innovation, and accountability to better fulfill Sesame's educational mission. By 2016, Sesame was in the middle of its change, and Dunn contemplated how best to position the organization for success in the future.
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