Strategic Planning at the Chronicle Gazette Research Paper.

Strategic Planning at the Chronicle Gazette Research Paper.

Technological advancements have changed the way news is received, reported and deliver to theconsumers. The increasing use of the Internet and mobile technology has changed the waybusiness is run. These technological factors have influenced the newspaper industry in the UnitedStates to adopt newer business models.  Strategic Planning at the Chronicle Gazette Research Paper.Many newspapers have digitized their news through theirown websites. There are more than 900 websites run by newspapers in the United States. Amajority of these websites carry online advertisements. At the same time, there are alsostrengthening their print news divisions to increase circulation.The competitive landscape has changed in the newspaper industry with the entry of newmedia, mobile devices, media platforms and concepts. Internet companies, such as Google,YouTube, Facebook and Twitter provide online, real time news coverage along with videos attracting younger audiences. They have been able to take readers away from the traditionalprinted media to the virtual content space. Strategic Planning at the Chronicle Gazette Research Paper.

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They attract a lot of traffic on their websites as amajority of the content they offer are free to access. Due to the increased traffic, they have alsobeen able to attract advertisers away from print advertising to online advertising. The cost ofonline advertising is cheaper when compared to print advertising. The cost of operating andmaintaining websites is also less in comparison to printing newspapers. All of these factors haveensured that the new media companies have to been able to increase their customers, minimizethe cost of operations and maximized profits. The traditional newspaper publishers have beenstruggling to adopt new technologies in their business and increase profits.In this era of globalization, there is an increased emphasis on protecting the environmentand sustaining it for future generations. Businesses now have increased social responsibility tofunction in a manner that protects and enhances the environment. The same applies to thenewspaper publishing industry. In the past few years, newspapers have been more aware of protecting the environment and taking measures towards this. A majority of the newspapers areusing recycled content to publish. They are encouraging newsprint manufacturers to use morerecycled content and less virgin fiber for printing newspapers. A number of publishers are alsotaking steps to minimize their use of printing paper. They have taken measures to use resourcesjudiciously and optimize utility. The Washington Post and The Los Angeles Times havedecreased their widths to 50 inches to economize their use of newsprint (Honnold, 2000). Strategic Planning at the Chronicle Gazette Research Paper.Porter’s ModelPorter’s model is a strategic tool developed by Michael E. Porter in 1979. It is a tool thatfacilitates to assess and analyze the competitive forces in a market. It is developed on the basisthat competitive strategy must be formulated taking into account the opportunities and threats inthe industry. Porter has identified five forces that determine the competitive landscape ofindustries and markets. These five forces are competitive rivalry between suppliers, threat of newmarket entrants, bargaining power of buyers, power of suppliers and threat of substitute products.The strategy of the business should be designed in a way to change these competitive forces tothe advantage of the company (Chapman, 2010).Applying the Porter’s model to the newspaper industry, it can be seen that there is alwaysa possibility of increased competition. New players could enter the market. They could adoptinnovative methods to enter the market. For example, providing free copies for a trial period of30 days. They could also provide a complementary copy with some other publication. Withregard to the bargaining power of buyers, there could be changes in the demographic distributionof the readers. If the majority of the readers are old, then the newspaper should change itsstrategy to attract more youth in buying the paper. With the easy availability of free online news,readers are not willing to pay for news content. Newspaper publishers need to formulate a mixed strategy combining free and paid access. The more popular portions of the website could bemade accessible to all to attract more traffic. Pay walls can be designed for niche news thattargets specific readers. Suppliers could influence prices by quoting more price formanufacturing the newspaper. The threat of substitute products is in the form of television andthe Internet. The newspaper industry is finding it difficult to tap the young adults marketsuccessfully as a majority of them look to television and new media, such as the Internet for theirdaily news. Publishers need to understand the specific needs of the youth and formulate theirstrategy accordingly. They can increase their readership base amongst the youth by providingincreased web coverage in areas that interest them, such as business, sports, education, arts andentertainment.Strategy Adopted by Companies in the Publishing Industry to cope with the ChallengesThe newspaper industry in the United States is faced with multiple challenges of reducedreadership, increased costs and competition from new media companies, such as Google. Amajority of the newspapers have online versions of their editions on websites. They have alsoother measures to increase circulation and improve profitability. Newspapers have increased theprices for both the subscriptions and single buy purchase. They are also analyzing the marketsthey serve to understand the cost-benefit dynamic of each market. As a result, some newspapershave cut back on circulation to remote areas where the revenues earned are more than the cost ofdelivery.The Wall Street Journal is one of the leading newspapers in the United States, which haschanged its market strategy and business model to overcome the challenges in the publishingindustry. Through its website,www.wsj.com, the paper provides online access of its newscontent to readers. As of April 2010, the Wall Street Journal had 414,025 e-subscriptions.

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The Chronicle Gazette has to understand that there is always a demand for good qualitynews content. Even though subscription and advertising revenues are down, there is a constantdemand for quality and unbiased news and information.  Strategic Planning at the Chronicle Gazette Research Paper.The Chronicle Gazette needs to focus onits core competencies by eliminating unprofitable areas of operation. It should focus on contentcreation that meets the needs of the majority of its readers. An increasing number of readers aredemanding specific and relevant news coverage and analysis. This could be in the areas ofpolitics, sports, arts, entertainment or local news. The Chronicle Gazette should cater to thisaudience and not just focus on general news.The Chronicle Gazette needs to take action quickly and swiftly to revive its fortunes. It shouldtake measures to be part of the digital bandwagon by distributing its content through websitesand mobile devices. The Chronicle Gazette has to take cost reduction measures and improve theefficiency of operations. It should aim to utilize its employees and assets to maximize returns. Itshould re-engineer its production and distribution processes to be able to deliver news contentacross various media platforms. These measures will ensure that The Chronicle Gazette focuseson its core strengths and builds on it to bring in more subscription and advertising revenues. Strategic Planning at the Chronicle Gazette Research Paper.

References

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