Pest Analysis

Topics: Newspaper, Advertising, Internet Pages: 2 (643 words) Published: October 27, 2012
PEST Analysis for Newspaper Industry
Using the PEST analysis to assess the macro environment of the newspaper industryshows that the technology and recession are two of the major factors that have beenaffecting the newspaper industry as well as the socio cultural side. Technology

The Internet, a powerful and advance technology, has changed the model of masscommunication. The Internet has had a major impact on the external environment of thenewspaper industry and has been gradually substituting the prints. It has also increasedcompetitiveness with easy entry barriers requiring low capital cost and resources, whichhas been a threat for many established prints publications.With Internet connection in almost every home, readers open sites that offer nearlyeverything found in the newspapers. Many newspapers, such as Guardian and VerdensGang (Times, 2009), have had to compliment their daily prints with online version andfurther updates throughout the day, instead of waiting for updates till the next day¶sprint. Online news medium has also attracted incremental readership from other countries that were not as accessible to news in the days of prints.The technological progress and internet has changed readers¶ habits and their perception of news, reduced readers¶ demand to prints and resulted drop in circulationthat has affected newspaper industry¶s economy and drop in advertisement revenue -23% drop in 2008, according to Newspaper Association of America (The Economist,2009). According to Levine (Time, 2009), media integration, such as audio, video and texttransmissions, is a fresh angle to the traditional communication model. It is anopportunity not only for the newspaper industry, but also for readers as informationconsumers and citizen journalist. Economic Environment

Technological progress has impacted the economic side of the industry¶s externalenvironment. It has been a threat for many companies that have failed to keep up or went out of business and lost...
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