Reader's Digest Case Study
READER’S DIGEST CASE ANALYSIS
By
Bobby Renner
March 6, 2013
Overview:
This case analysis is about Readers Digest’s recent struggle to succeed in business. Reader’s digest was the number one consumer of magazines in the US and has struggle in the passed decade after the invention of Internet. They have recently hired a new CEO Mary Burner to help restructure RDA.
Issues:
* INTERNET- The internet is RDA’s biggest competitor. It offers information of all kinds free of charge to everyone. * Advertising- Advertising is most magazines biggest revenue producer. Advertisements also have a negative effect on readers because they take away from the entertainment provided by RDA. * Net income has been in the negative in 2009, 2008, and 2007. * Revenues have decreased from 2,101.6 million in 2009 to 1,714.0 million in 2010. * DEBT! RDA has too much debt!
Analysis:
5 Steps of Strategic Management-
Vision- “We are a global multi-brand and marketing company that educates, entertains, and connects audiences around the world. We are dedicated to providing our customers with the inspiration, ideas, and tools that simplify and enrich their lives.”
Objectives- * Increase Advertising * Using Infomercials * Redesign Magazine and their logos to help rebrand them. * Continue expanding to global markets * Increase there ever decreasing profits.
Strategy- * Use advertising to increase revenues and profits. * Acquire other companies (buyout) to help minimize competition and increase revenues. * Reduce costs by minimizing work force and increasing online subscribers. * Focusing on top seller magazines, making sure consumers renew subscriptions. * Customer Service, allowing customers to return products at any time.
Implement & Execute: * Reduced work force by 280 employees, 8% of their workforce. Increased performance of human resources. * Rebranding there magazine * Increased Customer Services, allowing
By
Bobby Renner
March 6, 2013
Overview:
This case analysis is about Readers Digest’s recent struggle to succeed in business. Reader’s digest was the number one consumer of magazines in the US and has struggle in the passed decade after the invention of Internet. They have recently hired a new CEO Mary Burner to help restructure RDA.
Issues:
* INTERNET- The internet is RDA’s biggest competitor. It offers information of all kinds free of charge to everyone. * Advertising- Advertising is most magazines biggest revenue producer. Advertisements also have a negative effect on readers because they take away from the entertainment provided by RDA. * Net income has been in the negative in 2009, 2008, and 2007. * Revenues have decreased from 2,101.6 million in 2009 to 1,714.0 million in 2010. * DEBT! RDA has too much debt!
Analysis:
5 Steps of Strategic Management-
Vision- “We are a global multi-brand and marketing company that educates, entertains, and connects audiences around the world. We are dedicated to providing our customers with the inspiration, ideas, and tools that simplify and enrich their lives.”
Objectives- * Increase Advertising * Using Infomercials * Redesign Magazine and their logos to help rebrand them. * Continue expanding to global markets * Increase there ever decreasing profits.
Strategy- * Use advertising to increase revenues and profits. * Acquire other companies (buyout) to help minimize competition and increase revenues. * Reduce costs by minimizing work force and increasing online subscribers. * Focusing on top seller magazines, making sure consumers renew subscriptions. * Customer Service, allowing customers to return products at any time.
Implement & Execute: * Reduced work force by 280 employees, 8% of their workforce. Increased performance of human resources. * Rebranding there magazine * Increased Customer Services, allowing