Business Policy and Strategy Project

Added on - 21 Feb 2021

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Business PolicyandStrategy Project
Table of Contents1. INTRODUCTION.......................................................................................................................12. State of the newspaper publishing industry today.......................................................................12.1. Data on declining circulation and revenue............................................................................12.2. Status of newspaper leaders..................................................................................................23. Reason for the decline in the circulations and revenues of the newspapers................................23.1. External assessment..............................................................................................................24. Internal assessment.....................................................................................................................54.1. Organizational processes and structure.................................................................................54.2. HR capabilities......................................................................................................................64.3. Financial position..................................................................................................................74.4. Marketing/ sales capabilities.................................................................................................74.5. Operational Capabilities........................................................................................................84.6. Strength and weakness of the company................................................................................85. How companies in the publishing industries are adjusting their strategies to cope up with thechallenges.........................................................................................................................................86. Steps The Chronicle Gazette might take in order to deal with the challenges............................96.1. Short-term steps...................................................................................................................96.2. Long-term steps..................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
1. INTRODUCTIONThis report is based on the overview of the newspaper industry. The report includes thecurrent state of various newspaper industry and the reasons behind the declining value of thenewspaper industry in recent times. The report will also highlight the various environmentalfactors resulting in the decline of the industry and the internal organizational structure includingstrength and weakness of the industry including the adoption of the new technology by thecompany. Further the report will highlight the strategies made by The Chronicle Gazette in orderto cope up with the challenges faced by them which include short-term and long-term steps ofthe company.2. State of the newspaper publishing industry today2.1. Data on declining circulation and revenueThe above graph shows the data of circulation that includes daily weekday circulation andSunday circulation that shows the deliberate decline for the newspapers in the coming yearsmainly due to the rise of the digital media. As the estimates of the recent figures is stated below-According to the Alliance for Audited Media (AAM), an organization that verify all the dailynewspaper circulation figures, the weekly circulation rate of the US daily newspapers has fellabout 8% in 2016 including in the 28th consecutive years in decline. It states that the overalldecline in the newspapers in US is about 10% which includes 9% for Sundays and 1% decline in1
daily circulation. Further as simplified the the total weekday circulation of the US dailynewspapers fell to 35 million along with the 38 million decline in the Sunday newspapers(Lee,Cho and Kim, 2015)2.2. Status of newspaper leadersThe overall revenue of the worldwide newspaper circulation amounts to 87 billion USdollars in 2017. Considering the leading newspaper industry- The New York Times has theoverall revenue of US$ 1.676 billion (2017) that showed and increase of 7.73% to that of 2016.Further there was increase in the revenue of about 4.35% amounting to US$ 1.749 billion in2018. The New York Times is ranked 17thin the world and 2ndin US in the newspaper industry.The company has the overall circulation of 571,500 units of the daily newspapers and 1,087,500of Sunday newspapers. The Wall Street Journal is one of the largest newspapers in the UnitedStates in case of circulation. The newspaper has the circulation of about 2.475 billioncopies(Bratianu and Bolisani, 2015.3. Reason for the decline in the circulations and revenues of the newspapers3.1. External assessmentEconomic forces-Various economic conditions such as availability of finance and fundingresults in decline as well as circulation of the newspapers, as the capital and the financialresources that are required by the newspaper industry is more than that of digital media orinternet. The requirement of more investment in the industry as well as non availability offunding sources by the investors due to their lack of interest in the industry is the result ofdecline in the newspaper industry. Also the investment of people in advertisement posted innewspapers is being declined as people are more likely interested in social media advertisementover the internet which amounts to be of lower cost or no cost. This results in decline of therevenues by the newspaper industry(Shrivastava and Persson, 2014).Social, cultural, demographic and environmental forces-There are various social factorsaffecting the newspaper industry that comprises of the interests of the people and the youth asthey are obsessed with the use of internet and show more interests in reading online news andwatching videos rather than reading the newspaper. The rise in the amount of the workingpopulation has increased the widespread use of internet and lead to the decline in response to2
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