General Environmental Analysis
The macroenvironmental factors that will affect USA Today are namely economic, social, political and technological. 1. Economic
The economic environment for USA Today were relatively unstable due to the rising costs of newsprints in the mid 2000s. As printing cost is one of the major cost of newspaper, the rising cost in printing have definitely affect USA Today and its survival. This means that USA Today have to find solutions to solve the rising cost problem and its has taken several measures. It raised its single-copy price from 65 cents to 75 cents which results in a significant increase in revenue without any effect on its overall paid circulation. this shows that readers of USA Today have a high purchasing power and the demand for newspaper is inelastic, that is regardless of the economic performance, people will still read newspaper and there is very little impact on the newspaper industry on political policies. Another economic factor that will affect USA Today is the high level of competition. This is because there are a substantial number of big firms competing with USA Today. These big firms have resources and some are popular among USA Today's target market, therefore, it may force USA Today to be more aggressive in... 2. Social
In the 1990s, the airline deregulation had led to a large decline for air tickets, inducing a swell of business travel. This benefited USA Today who had already unearthed the business travellers that others had stumbled upon. However, there is also negative impacts on USA Today. First, it had go into direct competition with the Wall Street Journal. Moreover, with number of business travellers increasing, the business travellers' market may become more attractive resulting more firms which are previously not targeting on business travellers to come into the competition. 4. Technological
Due to technology advancement in the 1990s, USA Today has implemented the necessary technology to allow advertisers to transmit copy electronically 24 hours per day as well as making production totally digital. This have aid USA Today to deliver more up to date news than its competitors making it more competitive. Today, due to the technology advancement of Internet and other means of media that provide information such as smart phones, newspaper circulations have been declining. Although USA Today have begin to partner with companies on the leading edge of wireless technology and made use of information-distribution technologies such as electronic paper (e-paper), it is not enough. This is because, other direct competitors like the Wall Street Journal and indirect competitors like smart phones are already doing it or it is easy to imitate. If there is no further technology advancement in newspaper, it may mark the end of the newspaper business. Technology is one of the most crucial factor for the survival of USA Today as people today can obtain information from various media. And with the changing demographic of new generation being more tech-savvy, it is inevitable that the traditional newspaper has become less appealing.
The U.S. newspaper industry had not been growing. Industry faces a number of issues such as down soaring newsprint prices and declining advertising dollars, decline in number of printed news readers. Based on statistical records, there is an increase in growth of news consumers who source for news in other areas of distribution such as Television, Radio and Internet. These issues lead to closure of newspaper organizations, bankruptcy or cutbacks.
USA Today introduces both the print version and online version of USA Today. USA Today’s has two direct competitors, namely New York Times and Wall street Journal. Competition is increasing as these direct competitors provide similar product and services to the similar range of audiences. Each organization provides...
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