Newspaper vs the Internet

Topics: Rupert Murdoch, Newspaper, Strategic management Pages: 4 (1306 words) Published: October 19, 2010
Qn 2: Newspapers are under attack from the Internet, What strategies might they follow in order to survive? Internet technology has a solid effect on how firms compete in the twenty-first century. Michael Porter (strt mgment ) stated that companies that succeed in the twenty-first century are the ones who use the internet as a compliment to traditional ways of competing, rather than those who set their internet initiatives apart from their established operations. Printed news goes back hundreds of years to the late 1400’s when news pamphlets were passed around in Germany. The first true newspaper (in English) was the London Gazette of 1666. The first one appeared in Boston in 1690. These have come under some pressure from free online news sources. (CEO world magazine) Figures released by the Newspaper Association of America show that the decline of newspapers is more rapid than previously thought, with total print advertising revenue in 2007 plunging 9.4% to $42 billion compared to 2006, the biggest drop in revenue since 1950, the year they started tracking annual revenue. (Tech-crunch) Online provides some comfort for the dead-tree business, with internet ad revenue growing 18.8% to $3.2 billion compared to 2006, but a rate significantly lower than the 31.4% growth the year before, and not even close to replacing the losses from print. Online revenue now represents 7.5% of total newspaper ad revenues. (Tech-crunch) The numbers speak for themselves: The old newspaper model is simply not going to be market-viable as society heads deeper in the digital age. News blogs and online reporting are the future of journalism. The way of the future is digital and this needs to be embraced by newspaper companies in order to create an effective new business strategy to survive first, and to make profit second. Newspaper companies firstly need to identify what their core competencies are. These consist of criteria specifically holding a sustainable competitive advantage...
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