100%(4)4 out of 4 people found this document helpful
This preview shows page 1 - 3 out of 6 pages.
USA TODAY: INNOVATION IN AN EVOLVING INDUSTRY*CASE 1University of the Incarnate WordMarketing Management [BMKT 6311]Meriton Qerimi08/29/2015San Antonio, TX
1.Case SummaryUSA Today was first launched in 1982 by Allen Neuharth and it was considered the first general-interest daily newspaper in America. At that time, Allen Neuharth was Chairman of Gannet Co., Inc.. Gannet is now the largest newspaper group in regards to circulation in the U.S. with around 11.6 million readers every weekday, and 12 million readers every Sunday (Ferrell & Hartline). Inthe early days of the debut, USA Today achieved immediate success due to its innovative compact format where articles were written in short pieces, and due to the eye-catching design ofthe newspaper. The mission of the USA Today was to spread the news and make it enjoyable to the public, attractive for advertisers, and informative to people. The news was presented in the four sections of the newspaper: News, Money, Life, Sports. Despite the success, the USA Today had challenges to have profits. For 10 years, USA Today had a loss of $600 million dollars, and itwas only able to achieve a profit of $5 million dollars in 1993, 11 years after the debut. Besides the enormous cost and the loss for several years, USA Today also had severe competition from other national newspaper such as the New York Times, Wall Street Journal, cable networks, internet sites etc. Additionally, global companies were investing less in advertising and this also