The Impact of Internet Technology on Business

This assignment examines the effects of internet technology on modern businesses. It highlights how the accessibility of information through websites, phone apps, and PDFs empowers customers and necessitates adaptations in business strategy. The analysis draws upon research on data-driven decision making, innovation strategies, and the evolving role of top management teams in a digital landscape.

BUSINESS POLICY AND
STRATEGY

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................3
2. State of Publishing Industry in Today's era.................................................................................3
2.1 Data related with declining revenue and circulation of Publishing Industry...................3
2.2 Status of Newspapers Leader...........................................................................................4
3. Examine why Newspaper Industry is facing decline...................................................................5
3.1 External Assessment:........................................................................................................5
3.1.1 Economic Forces:..........................................................................................................6
3.1.2 Social, demographical, cultural and environmental forces...........................................6
3.1.3 Political, legal and governmental forces.......................................................................7
3.1.4 Technological forces.....................................................................................................7
3.1.5 Competitive forces.........................................................................................................8
3.1.6 External Factor Evaluation:...........................................................................................8
4. Internal Assessment.....................................................................................................................9
4.1 Organisational process and structure................................................................................9
4.2 HR capabilities...............................................................................................................10
4.3 Financial Position...........................................................................................................10
4.4 Sales/ Marketing Capabilities.........................................................................................10
4.5 Operational Capabilities.................................................................................................11
4.6 Publisher strength and weakness....................................................................................11
5. Strategies design by Publishing industry so as to cope up with challenges...............................12
6. Steps to deal with challenges.....................................................................................................13
6.1 Short-Term Steps:...........................................................................................................13
6.2 Long-Term Steps:...........................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

1. INTRODUCTION
Strategic Planning refers to the process by which organisational manager and leader
identifies their future vision as well as goals and objectives of company. In simple words, it
defines the strategy and decision making ability of business concern in terms of using resources
in an optimum manner (Constantiou and Kallinikos, 2015). Publishing Industry is a kind of
Industry which is mainly segmented into newspapers, magazines and books. Moreover, their
products possess huge impact on social-cultural and political environment. With an advancement
of Internet, society claims that publishing sector is dying. This report talks about “The Chronicle
Gazette” which is a leading newspapers organisation in major metropolitan area with a
circulation of 225,000 customers. The main goal of this assignment is to state the issue of steady
decline in subscription to the paid newspaper.
2. STATE OF PUBLISHING INDUSTRY IN TODAY'S ERA
2.1 Data related with declining revenue and circulation of Publishing Industry
According to the given case study, subscription of The Chronicle Gazette had reduced by
35% and also its advertising revenue dropped by 28% in past 8 years. As per the report of
Newspapers Association of America's, it has been figure out that newspaper circulation had
begun decline from the year 1993 and it kept on declining till today.
In the modern era, where nothing remains constant; things change and so does
technology. Advance technology brings creative ways of doing things which seems to be
imaginable in the past. For instance: Today, we are grateful with a wealth of new sources that is
available on Internet which means we have depend less on traditional hard copy of newspaper. In
2003, the revenue of publishing industry have fallen from 44.9 $ to 16.4 $ billion in 2014
(Eesley, Hsu and Roberts, 2014). On the contrary, digital ad revenues jumped from 1.8$ billion
to 3.5$ billion in 2014. According to Bureau of Labour Statistics, in 2014 nearly 458,000 person
employed in newspaper industry and by March it had decline to almost 60% i.e. 183,000 which
is quite huge.

2.2 Status of Newspapers Leader
Thinking about the manner in which individuals are using digital space and thinking
about its content as well has a serve a challenge for publishing industry (Georghiou and et. al.,
2014). Majority of the newspaper has face major decline such as Wall Street Journal, The New
York Times etc. In 2016, the revenue of both companies decline by 2.6%.
Average circulation of the Wall Street Journal as of July 2017 (in thousands)

From the above diagram we can clearly figure out that circulation of print ad is
comparatively less as compared to digital subscription. In total, Circulation of Print Ad was 1240
and so of digital was 1281 which is little higher. This shows more person prefer to read
information online as compared to traditional method. Both newspapers has faced overall fall of
10% in weekday print circulation.
3. EXAMINE WHY NEWSPAPER INDUSTRY IS FACING DECLINE
3.1 External Assessment
This mainly include all external factors that possess indirect impact on the operations and
functions of Publishing Industry (Johnson, 2016). This include economic, social, political, legal,
technological, competitive forces etc. The influence of all these forces are adverse on the
functioning of Newspaper Industry. Mentioned Below are the detailed explanation of all these
factors:

3.1.1 Economic Forces
Economic downturn enforced newspaper sector to cut their cost because of massive
decline in the revenue. The most reconciled factor that has an impact on gross revenue of
newspaper industry is overall state of the economy. Whenever the entire economy or nation is
perceived negative light by the consumer, essential source of advertising revenue owns a
tendency to dry up. For instance: If the real estate sector is worsening, advertisement sales of that
particular industry will also decline. As early as an outfit like Walls Street Journal reports new
story or news, bloggers and cable network move quickly to cover same story, obviously with
much of profit. This is one of the first-hand driver that depicts that there are only .5 %
newspapers per household in the Hong Kong which is quite less.
Situation like Inflation also owns an adverse impact on newspapers revenue. For
example: During Inflation when prices are high, there are chances that consumer may not willing
to spend unnecessary money on purchasing newspapers, when they are getting same information
or news through various sources of Internet and Cable news which is almost free i.e. saving their
entire money which they earlier investing on purchasing newspapers.
3.1.2 Social, demographical, cultural and environmental forces
The Internet integration has influenced the reading behaviour of customer and become an
important part of their daily news habit. Search Engine and low internet subscription cost gave
changed the perspective and values of print of reader and enable them to scan and access Internet
news in more faster and tropical manner. Youth prefer to read news via their I-Phone or PDA’s
which lead to reduce the revenue of newspapers industry which they are thinking to gain from
the youth target market (Khanagha, Volberda and Oshri, 2014).
Demographical Change is one another factor that threatens the growth of publishing
sector. The proportion of news reader had increase among different target reader of different age-
group. For instance: Reader ranging in between 18 to 24 prefer to read via Internet or any other
sources. On the contrary, person ranging more than 50 prefer to read news via Newspapers only.
3.1.3 Political, legal and governmental forces
The influence of political change on publishing sector is no less important than it tends to
be on individual. An unexpected terrorist attack, resignation or election can totally alter the
political landscape and size the attention & interest of readers. As per the Economist (2015),

various political parties possess an impact on the interest of news reader on the basis of their
political belief and power (Klettner, Clarke and Boersma, 2014). It has been believed if
newspapers publish content related to the political condition of any other country that it will
seize the attention of local resident effectively and efficiently. For instance: When Donald Trump
was elected as former President of US, the resident of other nation was curious for the result. Big
Outfit like Wall Street, The New York Times and the Chronicle Gazette kept on publishing news
related to that in their newspapers which somehow encourage people to buy and read
newspapers. Same is in the case of legal and governmental forces
3.1.4 Technological forces
The Internet, an advance and powerful technology has modified the model of mass
communication. The Internet and its various sources possess major influence on the external
environment of publishing sector and has been trying to substitute the print step by step. It has
also raised the competitiveness level in the market as it allow easy entry barrier with low cost
resources and capital to capture large market share which serve as a threat for many well-
established and renowned print publication. With a free and easy access of Internet Connection
in almost every house of Hong-Kong, readers can read news or information by simply opening
any site on the Internet which will provide them detailed description of current news. (Lawton,
2017). The major source of newspapers revenue was Advertisement but now Advertiser had
begins to switch their mode of advertisement from traditional print-out method to other sources
of media like social networking sites, television, road show, fall ads etc.
Currently, the pop-up advertisement or pay per click advertisement from the Internet
web-site is increasing tremendously and seizing the attention of ample customer in an effective
manner. (Lechner and Gudmundsson, 2014).
3.1.5 Competitive forces
Porter's five forces model Threat of new entry: This factor specifies that enterprise require to make system function
properly through which superior are able to compete with competitors. As, internet has
evolved which has affected those firms which are operating their business in print media.

 Threat of substitution: Internet has emerged as substitute of newspapers and magazines.
Customers choose product which they find cost efficient; so internet is best option as they
are able to get information easily and in adequate manner. Bargaining power of buyers: This states that firm require to set appropriate prices for
products and services to attract customers. Companies which have business in print
media are impacted by internet. Bargaining power of suppliers: Firm should have connection with suppliers, so that they
are able to get adequate raw material for their business. As print media require paper and
other resources while internet didn't.
 Competition rivalry: Firms which are associated with print media have competition with
companies which are using internet to broadcast information.
3.1.6 External Factor Evaluation:
This method consider as strategic management technique often used in assessment of
external market conditions. (Malerba and et. al., 2015). Therefore, EFE model used to scan the
opportunities and threats arises due to the existence of latest gadgets who establish their
dominance in the market. EFE consist of different element which stated below:
External factors: - These are considered external for any business within which they have
no control. Some of them are good and some are bad from business point of view. In case of
newspapers industry many internet technologies were coming which dilute the business of
newspaper industry.
Opportunities:
For Chronicle Gazette advantages can be gained when they publish news with advanced
technology and update people with the current affairs in effective way. Improvement in quality
standard and adding some features at affordable price to general public.
Threats:
Due to existence of marketing tool like advertisement, publicity and social media damage
the whole business of newspaper industry. (Mukhopadhyay and Gupta, 2014). Internet and
digital media is one of the rivalry in this sector because large population spend their time in
searching various data from these app like Facebook, YouTube and Google instead of
newspaper.

4. INTERNAL ASSESSMENT
4.1 Organisational process and structure
Chronicle gazette whole organisation structure is decided by strategic level according to
business environment in order to maintain sustainability in this line. The whole structure divided
into three part which stated below:
Strategic level: - This department decide all the policies related to important decision like
promotion, expansion and restructuring of business strategies. The main objective of this division
is to fit all the organisation activity according to the objectives of company.
Middle level: - Under this level whatever the instruction given by top level must be followed by
tactical department in order to face daily challenges of company.
Operational level:- This consider as lower level in which daily routine work like printing of
newspapers, delivery them from one place to another or in case if any issue arises sort by middle
level in effective manner (Scherer, Palazzo and Matten, 2014).
4.2 HR capabilities
The Chronicle Gazette is a leading newspaper in San Francisco and it is also considered
as a First-rate newspaper. So, there are many capabilities that an HR is having. It is as follows: Publisher – They are considered responsible for handling all the operations procedures
that are carried out in Editorial team and business Team. Their main duty is to make sure
that the newspaper is running smoothly in the city. Editor – This person is required to look after the budgets which is being allotted for
publishing the newspaper. In many cases, publisher and Editor are the same person.
 Managing Editor – They are required to handle their day to day operations which are
happening for production of newspapers (Wheelen and et. al., 2017).
4.3 Financial Position
The Financial position of Chronicle Gazette is as follows:
 Their profits have reduced because people are now making use of internet for reading
news.
 Earlier, newspapers were the only source through which people get to know about the
important news and advertisements but now internet is considered as a fastest source of
internet.

 It is required that Chronicle Gazette should focus on their cost structure and should try to
reduce the cost of their operations and it is also prescribed that these cost reduction
efforts should not be confined to a single department instead all the functional units must
be covered.
4.4 Sales/ Marketing Capabilities
As per the market trend specified, people are switching to digital technologies for reading
news or getting informed about any kind of advertisement so the sales and revenue of Chronicle
is effected very badly (Stroke, 2015). So, they have now entered into a digital world so that they
can be connected with their customers in another manner.
So, Chronicle Gazette is having a strong sales team who is making necessary investment
so as to develop their activities and maintain a permanent customer base. As far as now, this is
the only way, they can manage to do their operations in the market and earn profits as well.
4.5 Operational Capabilities
Chronicle Gazette is one of the best newspaper which has good image in market and
customer has trust in it. It is important to keep same image in industry. There are many factors
which are important to consider this such as newspaper, printing machines, distribution channel.
Newspaper is the thing which has to be in time and it get late then there is no use of it and it
affects the image of company as well (Wilson, 2016). Hence company must hire few person
which are capable of performing this job efficiently. Secondly there is important role of quality
of paper, so it is important to use best quality paper which are resist to bear different
environmental factors. These days as the role of technology increases, Chronicle Company must
also use updated technology for printing this will help improve quality of news and there are
chances of less defects with reduced rate. There is use of internet for creating news so it is
important that Chronicle must use fastest internet, there must be electricity back up so that
operations of organisation does not get halt.
4.6 Publisher strengths and weaknesses
The strengths and weaknesses of Chronicle Gazette are:
STRENGTHS
 They are considered as a leading newspaper in major metropolitan area.
 They have been using ruling the market before the invention of internet.

 They are having loyal readers which is considered as their biggest strength
WEAKNESSES
 They have not entered the digital world as yet.
 They are not making use of any graphics or video clips so as to enhance their
presentation.
5. STRATEGIES DESIGN BY PUBLISHING INDUSTRY SO AS TO COPE
UP WITH CHALLENGES
These days role of internet is increasing and hence newspapers, magazine's sales rate
decreases. Hence to increase sales publishers come with different policies. If they do not do so
they will be out of run in current era (Thomson, 2016). Chronicle Gazette coop up with different
book stores and different outlets to promote sales. Management of Chronicle Gazette frames
many strategies such as commission to dealers, discounted on sale, etc. They provide various
other magazines with newspaper on special occasions such as Christmas, Good Friday, etc. there
must be good articles related to children so parents prefer to use
Publisher can give 0-5% discount in first year to new customer and to make long relation
this discount rate increases. For students they can publish special edition related to current
affairs, job related updates twice a week.
There are some special category people, publisher must take care of them as well, and
this will help to increase goodwill of company. This is the area which help company in its
growth in positive way. The Financial position of Chronicle Gazette is as follows:
 Their profits have reduced because people are now making use of internet for reading
news.
 Earlier, newspapers The strengths and Weaknesses of Chronicle Gazette are:
STRENGTHS:
 They are considered as a leading newspaper in major metropolitan area.
 They have been using ruling the market before the invention of internet (Palazzo, 2016).
 They are having loyal readers which is considered as their biggest strength
 Their tradition style of printing the newspapers is being liked by the readers a lot.
WEAKNESSES:
 They have not entered the digital world as yet.

 They are not making use of any graphics or video clips so as to enhance their
presentation.
 Readers are now more comfortable in reading news in a digital manner which is not
presented by Chronicle that was the only source through which people get to know about
the important news and advertisements but now internet is considered as a fastest source
of internet (Oshri, 2011).
6. STEPS TO DEAL WITH CHALLENGES
6.1 Short-Term Steps
There are various number of solutions which company can apply in order to face those
challenges and thus avoid them in future time. Some of the short term steps which can be taken
for overcoming them are described below:
 Major step which can be taken for the company is that they can start advertisement much
more in which they can publish drawbacks of news which is not being authenticated.
 This can be done through publishing the news and advertising. Internet news has various
kind of disadvantages and that needs to be come out in front of customers so that they can
know the importance of news which is authenticated.
6.2 Long-Term Steps
Long term steps which can be taken for overcoming of these kind of challenges are
crucial in nature as these techniques are long term in nature and will provide various kind of
benefits. One of the most effective method is holding onto the old customers who are still
purchasing the newspapers as they are most loyal customers company can have.
Another major factor which can be utilised by the company is that they should selling their
newspaper online so that people who are finding authenticated data can use it in easy manner.
This can be done through formulating online applications and advertising it so that awareness
can be created among the customers (Boersma, 2016).
CONCLUSION
According to the above mentioned it can be concluded that overall revenue and growth of
publishing industry is affected by Internet and its various sources. Earlier Newspaper was the
only source through which reader gets the information regarding what is happening in the world,
but for this they need to pay some money. However, with the introduction of Internet

Technology customer can get information from various sources such as through websites, Phone,
PDF.

REFERENCES
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