CASE18_NYT - THE NEW YORK TIMES COMPANY I. DISCUSSION...

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THE NEW YORK TIMES COMPANY I. DISCUSSION QUESTIONS, CASE INTRODUCTION AND KEY POINTS Introduction The case takes place in November of 2008, and centers around the challenges facing The New York Times Company. Although the recent election of President Obama created a massive spike in Times’ sales (a sales rate not seen since The Times announced the end of WWI), The New York Times Company is struggling to stay afloat. Large portions of the news and media are ported to the World Wide Web causing print subscriptions to decreasing rapidly. NYT Co. is valued for its unbiased news reporting and outstanding publishing, but its growth has been hampered significantly by the appearance of the internet’s online news outlets such as Google News. The emergence of the internet and shifting demand is affecting all industry players including NYT Co’s primary competition (Washington Post, News Corp., & Gannett), which is also losing subscribers at an accelerating pace. However the data show that NYT Co’s revenues and profit margins are lower than all of its competitors. Also, its competitors are more diversified than NYT Co. which offers them some insulation from changing print demand. Summary of key learning points and strategic issues 1. Foreseeing and adapting to radical shifts in demand due to changing needs and new competition. Taking a traditional business digital 2. Flexibility in the face of a evolving market with high competition and new technology 3. The role of acquisitions in company growth. Balancing breadth and depth. Leveraging resources across multiple business units to spread fixed costs (i.e. writer salaries) 4. Balancing the need for short-term financial solvency with the goal of long-term viability 5. Adjusting business-level strategy in light of disruptive business models Discussion Questions 1. Perform a STEEP analysis to understand the general environment facing The New York Times Company (NYT Co.) How will NYT Co. be affected by external factors? 2. Use Porter’s Five Forces Model to analyze the news industry in the US. Given this analysis, is the industry attractive or unattractive? 3. Using the 3I’s framework determine NYT Co.’s immediate, impending and invisible competitors. How does NYT Co. measure up against these competitors? 4. Create a SWOT analysis to understand NYT Co.’s strengths and weaknesses. Does NYT Co. have a sustainable competitive advantage in the publishing industry? If so, what is the source? What about NYT Co.’s evolution and current business strategy may pose problems going forward? 5. How can Sulzberger Jr. influence the board of directors to act in unison? 6. What long-term strategy should the NYT Co. implement? How can it differentiate itself from competitors? 7.
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CASE18_NYT - THE NEW YORK TIMES COMPANY I. DISCUSSION...

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