Strategy of Playboy

Topics: Playboy, Playboy Enterprises, Hugh Hefner Pages: 23 (8462 words) Published: June 24, 2009

Is it getting cold for girls in bikinis?
Playboy struggling to remain competitive in changing environment

Group 4:
Luca Curtarelli
Gergana Dimitrova
Michele Mazzoni
Beatrice Strazza
TABLE OF CONTENTS
1. Introduction………………………………………………………………….….2 2. Playboy history…………………………………………………………….…..3 3. Five Forces Analysis..........................................................................4 4. Playboy’s resources and capabilities……..…………………..……..7 4.1 Playboy’s retro image..……….……………………………….....8 4.2 Increasing competition…………………………………………..9 4.3Decline in readership……………………………………………...10 5. Playboy struggling to remain relevant………….…………………..10 5.1. Playboy’s media integration strategy…………………….11 5.2. Licensing………………………………………….. ………….…….....12 6. Recommendations……………….…….……..………………………………12 6.1. Women focus………………………………… ……………………….13 6.2. Entering new markets………………………………..………......14 6.3 Change in frequency and price………………………………...14 6.4. Avoiding brand dilution……...………………………………….15 6.5. Replacing Hugh Hefner…..…...………………………………….15 7. Conclusion……………..……………….…….……..………………………………16

Introduction
Playboy Enterprises, Inc. is an international company involved in the publishing, entertainment, and licensing businesses. It was established in 1953, when the Playboy magazine was published for the first time. Since then it became known throughout the world for its centerfold pictures of well-built nude women. During the 1990s, however, the company engaged in diverse operations including television, and the marketing and selling of name-brand retail products (as clothing, liquor, sound systems, and condoms). Nevertheless, the company has always been identified with the flagship Playboy magazine which is currently published in an American edition and 28 foreign editions.

This map shows the countries where Playboy magazine is published as of 2007. The dark pink indicates the countries where regional editions of the magazine are produced today, the lighter pink indicates the countries where regional editions Playboy were published. Well below from its peak circulation during the late 1960s and early 1970s, the company's flagship publication still has a relevant circulation among men's magazines with approximately 2.7 million readers. However, those figures are constantly decreasing. Although Playboy is highly popular and loved around the world its financial results tell different story. Throughout its history the company has faces numerous problems, associated with a societal and technological shift taking place. Although Playboy struggled to remain relevant and adapt to the changing environment it did not manage to do so very successfully, which is evident from the constantly falling revenues in the last ten years. In this paper we will examine what the exact reasons for this financial distress are, how Playboy tried to deal with them and then we will provide some recommendation on how strategy should change to turn the company back to profitability. But first of all, we will provide you with a brief historical overview of the company. Born in the ‘50s

Hugh Hefner, the founder of the "Playboy Empire", was born in 1927 in Chicago, Illinois. He was raised in the strict religious tradition of German-Swedish Protestantism. Within such a family setting sex was regarded as horrid, something never to be discussed or even mentioned. This made Hefner look for independence early in his life and he started working for Esquire. It was exactly there where he came up with an idea for a new magazine. Esquire had been successful in creating an image of urbane young man, sophisticated and worldly, and interested in fancy sports cars. Hefner grabbed this idea and decided to take it one step further by including photos of nude women. So, in 1953 the first issue of Playboy magazine was published with Merlyn Monroe on the cover page. It carried no date, since Hefner didn't...

References: Alexa. (2009). Website statistics. Retrieved on May 28, 2009 from www.alexa.com
Bauer Media
Business Week. (2002). Playboy 's Synergizer Bunny? Retrieved on May 24, 2009 from http://www.businessweek.com/bwdaily/dnflash/may2002/nf20020524_7212.htm
Business Week
Business Week. (2008). Christie Hefner Is Leaving Playboy. Retrieved on May 24, 2009 from http://www.businessweek.com/bwdaily/dnflash/content/dec2008/db2008128_900186.htm
Brandchannel
Financial Times. (2007). Sales blow for men 's magazine market. Retrieved on May 23, 2009 from http://www.ft.com/cms/s/c851d31e-bd5e-11db-b5bd-0000779e2340
Financial Times
Grant, R. (2007). Contemporary Strategy Analysis. Blackwell Publishing.
NBC
New York Post. (2007). Why women love ‘Girls Next Door’. Retrieved on May 24, 2009 from http://www.nypost.com/seven/08062007/tv/why_women_love_girls_next_door_tv_don_kaplan.htm
New Yorker
NY Times. (2009). Playboy Says It Is Open to a Sale or Changes. Retrieved on May 21, 2009 from http://www.nytimes.com/2009/02/20/business/media/20mag.html
NY Source
Paid Content. (2009). Industry Moves: Playboy’s Bob Meyers Resigns; Adds To Turmoil At Company. Retrieved on May 23, 2009 from http://www.paidcontent.org/entry/419-industry-moves-playboys-media-president-bob-meyers-resigns/
Photoshop news
Playboy. (2009). Annual Report 2009. Retrieved on May 23, 2009 from www.playboyenterprises.com
Playboy Style
Yahoo Finance. (2009). Form 10-K for PLAYBOY ENTERPRISES INC. retrieved on May 23, 2009 from http://biz.yahoo.com/e/090313/pla10-k.html
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategy Essay
  • Strategy Essay
  • Essay on Strategy
  • Essay on business strategy
  • Essay about Porsche Strategy
  • Strategy Formulation Essay
  • Business Strategy Essay
  • Global Strategy Essay

Become a StudyMode Member

Sign Up - It's Free