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The era of Newsprint as a dominant and highly profitable form of news delivery and advertising revenue has been forever changed. This paper will examine 4 different business models with the goal of providing recommendations on the path forward in the digital age. Each model will be put through a series of tests and analysis. For each business model market research will be examined to assess; market size, demand, price sensitivity, perception of the value proposition, strength of differentiators, and other important market product based elements. Assessing each from a competitive standpoint using Michael Porters analysis of the five forces. Finally we will examine how each of these models affects the current Competitive Advantage held by the firm. The firm that this paper will use for analysis and testing of models is the Pacific Newspaper Group, a devision of Canwest Publishing LP. This company was selected due to the nature of their current delivery strategy, its position in the market, and the availability of information. Based on the Model Comparison table which examined a number of potential strengths and weaknesses pared with the information which came from analyzing what effect each model would likely have on the Company’s two primary Competitive Advantages there is a clear favorite among the models. The one which has emerged as the most likely to succeed is the Hyper-Local Model. However, the Hyper-Local Model alone is not enough to solve the current problem that the Newspaper industry is facing. The revenue potential which comes from the increase in Page Views is still not likely to be enough to compensate for the losses in print advertising revenue. Therefore it is recommended that the Pacific Newspaper Group proceed with the Hyper- Local Model and the Mobile Model. Due to the limited negative effect that the Mobile Model will have on the two Competitive Advantages’s and because of its positive cash flow forecasts it is certain that these two models will not conflict with each other. Moreover, there will likely be synergies found in the two models.
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The era of Newsprint as a dominant and highly profitable form of news delivery and advertising revenue has been forever changed. This paper will examine 4 different business models with the goal of providing recommendations on the path forward in the digital age. Each model will be put through a series of tests and analysis. For each business model market research will be examined to assess; market size, demand, price sensitivity, perception of the value proposition, strength of differentiators, and other important market product based elements. Assessing each from a competitive standpoint using Michael Porters analysis of the five forces. Finally we will examine how each of these models affects the current Competitive Advantage held by the firm. The firm that this paper will use for analysis and testing of models is the Pacific Newspaper Group, a devision of Canwest Publishing LP. This company was selected due to the nature of their current delivery strategy, its position in the market, and the availability of information. Based on the Model Comparison table which examined a number of potential strengths and weaknesses pared with the information which came from analyzing what effect each model would likely have on the Company’s two primary Competitive Advantages there is a clear favorite among the models. The one which has emerged as the most likely to succeed is the Hyper-Local Model. However, the Hyper-Local Model alone is not enough to solve the current problem that the Newspaper industry is facing. The revenue potential which comes from the increase in Page Views is still not likely to be enough to compensate for the losses in print advertising revenue. Therefore it is recommended that the Pacific Newspaper Group proceed with the Hyper- Local Model and the Mobile Model. Due to the limited negative effect that the Mobile Model will have on the two Competitive Advantages’s and because of its positive cash flow forecasts it is certain that these two models will not conflict with each other. Moreover, there will likely be synergies found in the two models.
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1.
Av Vincent Yndestad
og Stephan Holand Den Trondhjemske postvei på sykkel 2010
2.
3.
www.trondhjemskepostvei.no
