Student ID No. : LE0002110
Course No. : MGT 195
Course Name : Business Policy and Strategy
Title of the Assignment: Strategic Planning at
The Chronicle Gazette
Date of submission: 8 DEC 2011
TABLE OF CONTENTS
1. Introduction 3
2. State of the newspaper publishing industry today
2.1Data on Circulation and Revenue 4-6
2.2 Top 20 U.S. Newspapers Print Circulation 7-8
3 Why newspapers are facing declining circulations and revenues? 3.1 External Assessment
3.11 Rise of the Web , Internet and free information 9 3.12 Economic downturn put company into the trouble 9
3 Internal Assessment of The Chronicle Gazette 4.13 Strengths 10 4.14 Weaknesses 10
4 Strategies in publishing industry to cope with the Challenges 11,12 5 Steps to deal with the challenge 13 6.1 Short-term steps
6.2 Long-term steps
Strategic Planning at The Chronicle Gazette
The Chronicle Gazette is a leading newspaper in the United States with a circulation of 225,000 customers. Over the past few years, it has been facing a decline in its customer base and revenues. This is mainly due to the increasing dominance of the Internet as a means of disseminating information and news.
Susan Feinman, the publisher of The Chronicle Gazette, noted the criticalness of the problem and worried this will become the 21st century equivalent of buggy whip manufacturers. The company is not looking for band-aid solutions but an insight of all the challenges and to work out an effective business strategy.
As The Chronicle Gazette has been a steady decline in subscriptions and revenues, this report will present the strategic vision of where the newspaper publishing industry stands today and where it is headed over the next decade.
3. State of the newspaper publishing industry today
The U.S. newspaper industry is in the midst of a historic restructuring, buffeted by a deep recession that is battering crucial advertising revenues, long-term structural challenges as readership to free news and entertainment on the Internet, and heavy debt burdens weighing down some major media companies. As the distress mounts – seven U.S. newspaper companies have filed for bankruptcy in the past years – lawmakers are debating possible legislation to assist the industry. Additionally, the Federal Trade Commission (FTC) will hold a series of workshops in 2009 to look at challenges facing newspapers, television, and radio in the Internet age.
There are now about 1,400 daily newspapers in the United States and thousands of community papers, which generally publish weekly or biweekly. A handful of papers, including the Wall Street Journal, USA TODAY, and the New York Times, have a national print readership topping a million or more. The top 50 papers account for about a third of circulation, among them the big city papers that had some of the largest circulation declines in 2008. Overall, the newspaper industry, including printers, reporters, advertising salespeople and other personnel, was a roughly $50 billion business in 2002, according to Census Bureau data, employing about 400,000 people.
Over the past few years, there has been a steady decline in the readership of newspapers. Anincreasing number of people are using the Internet to read and view news online for free. Due tothe advancements in Internet, people have free access to news and information online twentyfour hours a day and seven days a week. The news content is available in real time and can beaccessed anytime anywhere in the world. The majority of these online news providers do not levy a fee. As a result, the number of...