Strategies for Declining Newspaper Industry

Business policy and strategy

Running Head: Report
Contents
Introduction................................................................................................................................2
State of the newspaper publishing industry today......................................................................3
Data on declining circulation and revenue.............................................................................3
Status of newspaper leaders, e.g., New York Times, Wall Street Journal..............................3
Reasons for declining circulations and revenues.......................................................................6
External assessment................................................................................................................6
Economic forces.................................................................................................................6
Social, cultural, demographic, and environmental forces...................................................6
Political, governmental and legal forces.............................................................................6
Technological forces...........................................................................................................7
Competitive forces..............................................................................................................8
External Factor Evaluation (EFE) matrix...........................................................................9
Internal assessment...................................................................................................................10
Organizational processes and structure................................................................................10
HR capabilities.....................................................................................................................10
Financial position.................................................................................................................10
Marketing/sales capabilities.................................................................................................11
Operational capabilities........................................................................................................11
Our strengths and weaknesses as a publisher.......................................................................12
How companies in the publishing industry are adjusting their strategies to cope with the
challenges.................................................................................................................................13
Steps The Chronicle Gazette might take in order to deal with the challenges.........................14
Short-term steps....................................................................................................................14
Long-term steps....................................................................................................................14
References................................................................................................................................15
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Running Head: Report
Introduction
Because of the dynamic nature of the media industry and the increasing competition among
the organisations operating in it, a number of companies are registering losses repeatedly and
it has also contributed to shutting down of some business. There are innovations constantly
happening in the industry and because of the new mediums for communication of the news,
the competition on the news caste has also become unbearable. No business organisation or
industry is devoid of competition and driving on its own. This document presents the details
that address the problem of the decline in subscriptions to The Chronicle Gazette the
newspaper and the reduction in the advertising revenue earned by them. The purpose of this
report is to provide a strategic vision to the organisation by outlining the current state of the
publishing industry the analysis of the external environment, internal assessment of The
Chronicle Gazette and the Recommendation of the steps that the organisation can take to
bring about changes in the current studies for coping up with these changes and challenges.
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Running Head: Report
State of the newspaper publishing industry today
There is a tremendous decline in the demand for the newspapers and there is also
spontaneous change in the needs and Expectations of the customers who are opting for the
electronic media over the print media. The subscriptions of The Chronicle Gazette have
reduced by 35% and the advertising revenue for the organisation has also reduced by 28%
within the last decade. Even the other popular newspapers and the industry leaders like the
New York Times and Wall Street Journal are facing the brunt of reduction in the subscription
base. This has contributed to a steady decline in the sales and the revenues resulting from
them for the entire newspaper publishing industry.
Data on declining circulation and revenue
The Chronicle Gazette was leading in the metropolitan area and claimed to have a paid
circulation of 225,000 customers. However, the circulation rate for the newspaper has
reduced by 28% and it looks like the situation is not getting better anytime soon. The overall
revenues of the organisation have reduced by 23% as a result of the decline in the sales of the
company and the reduction in the circulation and the customer base.
Status of newspaper leaders, e.g., New York Times, Wall Street Journal
The major players in the newspaper publishing industry like the New York Times and the
Wall Street Journal are also suffering from the changes in the market dynamics. They have
registered losses in their subscription base and the resultant loss in the overall revenue of the
company. The organisations are going the digital way to ensure their continuity of operations
and are also trying new ways and strategies to ensure that they continue to meet the needs and
expectations of their customers. The following news headlines indicate the extreme situation
of the print newspaper industry due to the increasing competition and the decline in sales and
revenues.
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