New York Times Industry Analysis

This assignment focuses on analyzing the New York Times' position within the evolving newspaper industry. It examines market segmentation strategies, suggests areas of focus for NYT, proposes a mission statement for 2018, and delves into the challenges faced by both newspapers and paid TV channels due to shifting viewership habits. The analysis emphasizes the impact of digitalization, changing audience preferences, and the need for adaptation in storytelling formats.

Running Head: New York Times
New York Times

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Table of Contents
1) Financial Information of New York Times..............................................................................1
2) NYT’s Performance 2017........................................................................................................2
3) Porter's five forces are critical to NYT? .....................................................................................3
4) Segments NYT should focus on?................................................................................................4
5) Mission statement for NYT in 2018?..........................................................................................4
6) Challenges for Newspaper and paid channels due to changing viewership trend.......................5

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1)Financial Information of New York Times
Description Formula New York Times
2016 2015 2014
Profitability
Net margin Net profit/revenues 1.87% 4.00% 2.10%
Return on
equity Net profit/Equity 3.52% 8.71% 3.95%
Liquidity
Current ratio
Current assets/current
liabilities 1.53
1.9
1
3.
36
Quick Ratio
Current assets-
Inventory/current
liabilities 1.53
1.9
1
3.
36
Efficiency
Receivables
collection
period
Receivables/ Total
sales*365
4
8.62
48.8
7
Payables
collection
period
Payables/ Cost of
sales*365
5
5.83
55.7
7
51.
57
Asset
turnover ratio Total sales/ Total assets 0.64
0.6
2
Solvency
Debt to
Equity Ratio Debt/ Equity 1.92
2.5
3
2.
05
Debt to assets Debt/ Total assets 0.66
0.7
2
0.
67

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1) NYT’s Performance 2017
Company report 2017 first quarter result shows that new York times has experienced
high growth as per the annual report company aimed to increase the digital subscribers in the
2017 and the first quarter shows that company is truly growing as per the planned growth “Q1
the single best quarter for the subscriber growth in our history” with addition of 308000 new
digital news subscribers in its family and the company has experienced the 19 percent growth in
digital revenues.in the first quarter print advertising revenue decreased by 17.9% whereas digital
advertising revenue increased 18.9% and the operating cost increased in the first quarter of 2017
to $ 367.4 million compared to $351.6 million in the first quarter of 2016 due to high marketing
cost (NYT Annual Report, 2017).
First quarter report shows that New York Times has successfully achieved its objective
and the company is moving on the right track of growth toward digital subscription, although the
operating cost in first quarter is high due to aggressive marketing for persuading more and more
customers, but the company aims to decrease the subsequent cost in next quarter. (New York
Times, 2017)

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3) Porter's five forces critical to NYT
In the new environment of increasing digitalization company has to continuously grow with new
ideas and new techniques and in this new environment two most critical porter’s five forces
which are critical to New York Times is (Porter, 1998)
1) Threat of new entrants:
In the era of digitalization and the increasing demand of the customers new entrant can any
time enter the market and can seep the demand of techno savvy people, thus the critical company
should focus is to safeguard itself by creating huge competitive edge and creating the fort of
differentiation so that no one can cross the wall and sweep the target audience and decreases the
customer base for the company.
Company can tackle this threat of new entrant by focusing on bringing innovation and by
focusing the unmet needs of customer, by decreasing the operating cost in order to achieve the
economies of scale because it is very difficult for the new entrant to enter the market where
strong players keep raising its standards regularly.
2) Rivalry among the competitors
High level of competition in the market tends to decrease the price of the product or service
offered and that tends to decrease the profitability of the organization, as increase in the
competition increases the barraging power of customers and in this era of digitalization every
company would aim to raise its standards and would try to meet the unmet needs of customers.
New York Times could aim to differentiate itself and keep itself apart from other competitors
company can concentrate on decreasing the operating per unit cost in order to achieve the
competitive advantage both of this things can help New York Times to tackle the rivalry among
the competitors company can also collaborate among its competitors to focus on increasing the
market share rather than increasing competing for the small market.

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4) In the general environment affecting the newspaper industry, which
two segments should NYT focus on?
Market segmentation id the most essential part of a marketing strategy that helps in achieving
the systematic growth. New York Times
Customer Segmentation type Comments
Physical Characteristics In what physical format do readers want
their newspaper, to understand the number
of customers prefer online newspaper or
hard copy of newspaper, company in order
to increase its digital customer base can
influence readers on switching to online
newspaper subscription in order to save
paper and favor ecofriendly atmosphere
Characteristics of related products How customers wants their digital
newspapers be like (digital TV, radio or
internet) what type of content and style they
prefer in their news paper
5) Mission statement for NYT in 2018?
“To bring quality information about the whole world in all the spheres with total integrity and
with the aim of increasing the digital subscribers”.

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6) Challenges for newspaper and paid channels due to changing
viewership
2015 study shows that habit of watching TV is changing in youth they don’t prefer
watching legacy TV channels they prefer live streaming or on demand shows most young youth
do not want to see the written script dramatic monotonous shows they want everything new
(KPMG, 2016)
 Common problem which is faced by paid TV channels and New York Times are
Mobile designs and virtual reality and increasing technological up gradation every day is
shifting the youth from traditional media formats be it TV channels or newspaper industry,
customers want everything in their pocket they don’t want to search their news in the crowd
of news thy want filtered result for everything don’t want to invest their time on the things
they are not interested in.
New formats for storytelling: viewers don’t want to view the traditional TV channels
with prewritten dramatic scripts they prefer everything on live streaming which give them the
courtesy to watch anything at any time as per their comfort rather than on TV or newspaper
scheduling.
 Difference in problem of changing viewership in paid channels and New York
Times
Readers don’t want to invest time on the news which are manipulated for raising the
sensations readers prefer to read the actual news which are happening worldwide they don’t want
to read the issues which actually not happened but just for the purpose of profitability is been
manipulated and actual news is been sidelined

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References
Annual Reports, (2017). New York Times Annual Report available on
http://www.annualreports.com/Company/new-york-times
KPMG, (2016). The future is now streaming, available on
https://home.kpmg.com/content/dam/kpmg/pdf/2016/04/The-Future-now-
streaming.pdf
New York Times, (2017). First Quarter Company reports available on
http://investors.nytco.com/investors/investor-news/investor-news-details/
2017/The-New-York-Times-Company-Reports-2017-First-Quarter-Results/
default.aspx
Porter, M, (1998), Competitive advantage- creating and sustaining superior performance,
Simon and Schuster publisher, New York (Republished in, 2008)