Strategic ARRANGE FOR The Chronicle Gazette

The goal of the expert report is to indicating the situation of steady decrease in subscriptions to the paid newspapers not only in metropolitan area and impacting on the whole industry. Advertising revenue has also fallen scheduled to advertiser possessed diverse their advertisements in several way such as TV broadcast, CNN, CCTV, Internet etc. This statement is to offer the management with the Chronicle Gazette a tactical vision of where the newspaper publishing industry stands today and where it is going over another decade also propose strategies the paper can check out to make it through in the new business environment.

State of the newspaper

The Chronicle Gazette subscription had been dropped by 35% and also advertising income also decreased by 28% in past eight years. Make reference to Newspaper Association of America's, newspaper circulation acquired start declining from time 1993 and keep go on comparing with the index of 2008, there have around 22 % of flow was removed.

[Total Paid Circulation: Source: Editor and Publisher International Yearbook: - http://www. naa. org/TrendsandNumbers/Total-Paid-Circulation. aspx, seen on 1st Feb, 2010]

For the advertising earnings have beginning to share steadily with internet posting during year 1997 and the proportion of the total advertising volume got kept increasing looking at with 1997 and 2005 data, there have around 13 times increase of Internet advert in volume. Also from the graph we can see the papers advertising earnings keep lowering and Advertising on the internet earnings keep increasing simultaneity hence that Internet acquired absorb area of the lose in magazine ads.

[Advertising Expenses: - http://www. naa. org/TrendsandNumbers/Advertising-Expenditures. aspx, accessed on 1st Feb, 2010]

[Online advertisement earnings:- http://www. brianmcdaniel. org/2009/04/06/will-online-ad-revenue-beat-newspapers-in-2011/, utilized on 1st Feb, 2010]

According to "The New York Times Company studies 2009 Fourth-Quarter and Full-Year Results", even though groups revenues acquired increased from 21. 8% to US$36. 3M from US$29. 8M but check out the information on the advertising revenues had lowered around 25. 3% to 30. 2% compare with season 2008. The group major profits income healthy benefits in both Internet cost-per-click and screen advertising and also in other form of digital advertising to offset the other lose.

[New York Times NEWS RELEASE: http://www. nytco. com/pdf/4Q_2009_Earnings. pdf, seen on 13th Feb, 2010]

Referring to the "Newscorp 2009 twelve-monthly article", we can indicate that the media earnings and the operating income got dropped which may lead by Global economic recession reason. The data also demonstrating that the papers industry had influenced obviously including The Wall Road Journal - the world's leading business publication. The Wall membrane Street Journal had diverse their business in different area such as enhancing their publishing and advert in digital ways and providing different type of subscription to appeal to more audience and also providing specific personalize information for particular group. Increasing the quality of contents and record in more in-depth to develop reader loyalty and convenience.

[http://www. newscorp. com/Report2009/media/Newscorp_2009_annual_report. pdf, utilized on 15th Feb, 2010]

Company objective

3. 1 Exterior assessment

Economic downturn forced newspaper to spend less due to considerable revenues decline as a result of global economical downturn. In October 2008, advertising income from New York Times Marketing Group had lowered 15. 3% as compare to the same period in 2007.

Social and ethnical have no much change lately as people remain willing to pay for newspapers and having circulations. Based on the Newspaper Demographic Examination, the daily and the Sunday readership allocation design are mainly give attention to Individuals over 55 since they can have significantly more leisure time and get accustomed to read publication every day.

Demographics of American Newspaper publishers style can classifieds as below:-

The "Wall Street Journal" is read by the individuals who run the united states.

The "Washington Post" is read by people who think they run the country.

The "NY Times" is read by people who think they ought to run the country and who are extremely good at crossword puzzles.

"USA Today" is read by people who think they ought to run the united states but don't really understand THE BRAND NEW York Times.

[http://bitsandpieces. us/2008/07/13/demographics-of-american-newspapers/, utilized on 2nd Feb, 2010]

[http://sify. com/finance/economic-downturn-forces-us-newspapers-to-cut-costs-news-default-jeguQJbdihc. html, utilized on 2nd Feb, 2010]

[http://www. nnnlp. com/newspaper-demographics/, accessed on 2nd Feb, 2010]

Political arena is a huge influence after the rules of paper press freedom of these reported content and the business trading contracts of the spot or national or in their state and also for European union, NAFTA, and ASEAN if the papers will press beyond your state. Monetary factors like the demand and offer or the papers industry in both brief and long conditions, market placement and the rates also have to be considered. Sociable and cultural affect the conception of the newspapers contents and acceptance and what can appeal to reader to raise the circulation, consider enough time will the audience devote to reading that and the structure arrangement of those content and the buying. Identify the role of men and women within the population and get accustomed to concentrate the aim of selling those people.

The main factor impacting on newspapers industry is Technological force - Internet and other digital multimedia. Being with the digital age group, most of the details had been merge or migrate in to the exclusive world - Internet. People can simply found the info they required for simple a click; some of the information can be reached by free. One of the major revenue earnings for newspaper industry is advertising campaign which currently damaged by the new problem of Internet advertising campaign. Advertiser had starting to switch their advertisements from the original print out on magazine to other multimedia like TV, Semester ads, Street show on the public transportation and the web web-site.

Recently, the pop-up advertisements from the web web-site are quite popular and some of the major search engine and magazine web-site possessed enrolled as well. At the mean time, that advertisement income revenue got keep increasing speedily and be the major parts of generating for those companies. The major benefits of the online advertisement is the advertiser can sell their services or product in words mode, colorful graphic mode, animated display graphic or even can record a short videos with sound for bringing in audiences and enhance their understanding and image.

Referring to the brand new York Times president and CEO - Janet Robinson said their coming business strategy is to improve their digital system and planning to launching a paid model for NYTimes. com in 2011 to generate additional income stream. Hence that other competitor in magazine industry is discovering other publishing marketing to maintain their strong advertising business and appealing to other new business partners.

Competitive Make - Porter five make analysis:-

[Source from: http://upload. wikimedia. org/wikipedia/commons/thumb/6/66/Porters_five_forces. PNG/800px-Porters_five_forces. PNG]

Porter's Five-Force model can be use to examination the newspaper commercial competitive environment.

Threat of new entrants of newspapers publishing can be define as low to medium since the scale economies in the production and sales of newspaper had took benefit by the major newspapers distributor. Some famous make of advertisement is only going to post on the popular newspaper rather than shown in others. Product differentiation cannot be a part of it newspaper industry since the product itself is indifferent and non-standard one. The major accessibility barriers in newspaper industry is the admittance capital is relative high although authorities have no or less hurdle to such industry but the machines such as camera, stamping machines, video recording recorder are expensive. Also the advantages of associated in paper industry is low and also the current distribution channel is almost occupied by other major magazine. The quantity of daily copies is high so the cost per backup of the major paper is low and it's really hard to compete with them. Small enterprisers have a problem obtaining supermarket shelf space for his or her publishing because large retailers fee for space on their shelve and gave goal to the founded publishers that can pay for the advertising needed to create high customer demand. Switching cost is low because the readers had build-up loyalty with the current subscribed publication and take comfortable with their printing layout and it's hard for them to switch to learn another newspaper easily.

Bargaining power of customer is relative high since there have a great many other sources to get information from others like Internet, free newspaper which disperse on the road or caf and also from place. Also its un-different and non-standard product which audience may easily found another similar product on the market like NY Times, WSJ, etc. Customer influence a business through their ability to push down prices and inter-related because they purchases a large percentage of the newspaper and they have potential to incorporate backward of the newspapers contents. Alternative distributors of publication are abundant because newspapers is standard or undifferentiated, customer can make among many newspapers providers and transitioning to read other newspaper cost is hardly any or zero. After the paid paper is unimportant to the final quality and customer can be easily substituted it with free newspapers distribute among on the road daily so it make The Chronicle Gazette earnings keep declining.

Bargaining vitality of suppliers can be classified as medium to high since the important input for issuing magazine like paper and ink supplier is dominated by the few companies only buy they offers to many. In the mean time newspaper, ink and printing manufacturer are unique which got built up a strong relation among thus moving over costs existed. Distributor have the ability to integrate ahead or backward be competitive directly using their present customers like publication company can frontward to investee in newspapers or other posting organization or vise verse.

Threat of substitute product can classify as high since we may notice that the up-trend of online posting a rapidly increase and the cost-performance proportion looking at with traditional print newspapers are relatively low and also the content update are most in time and interact. Matching to Michael Porter, "Swap limit the returns of a business by positioning a roof on the prices firms on the market can profitably fee. " Extent that switching cost is low so substitutes may have strong effect on industry. Customer are transitioning they platform to read the news from traditional paper printed publication to the online version or other free distribute papers and sharing the profit on the market.

Rivalry among industry is high since we may remember that the newspapers industry wide income tendency is down and not only within the Chronicle Gazette, it also influences New York Times, WSJ as mentioned. Referring to the New York Times Company 2009 Full-year report, their total income were down 11. 5% which show that the top U. S. publication is also affected by economic downturn and also the new internet revolution. Some form of competition such as price cut is normally highly destabilizing will probably erode the average degree of profitability in newspapers industry like "Apply Daily" first of all launch in HK and simply sell at $2 when other traditional offering at $5 which erode the whole industry profitability.

[Internet user tendency :-http://www. c-i-a. com/internetusersexec. htm, accessed on 15th Feb, 2010]

4. Internal assessment

4. 1. Organizational processes and structure

4. 2. HR capabilities

Publisher - The publisher is in charge of all of the operations procedure of the newspaper in both editorial team and business team. The main duties and aim of the publisher is to keep an eye on that the publication run financially healthy and effortlessly.

Editor - The editor is accountable for all the content of the editorial newspaper and monitoring the budgets and cash put in by the editorial and other supplementary of the newspaper. The publisher and editor usually is the same person.

Editorial webpage editor - The editorial web page editor is accountable for the editorial web page, supplementary page as well as the "op-ed" webpage for the publication. Those pages will be the letter imprinted on the editorial web pages like words to the editor, columns by syndicated columnists and guest columns by local people or oversea senders.

Managing editor - The managing editor is the person who take care of and screen the day-to-day magazine creation and also for the online version as well.

City Editor - The city editor also called the metro editor whom is in charge of the news coverage of the metro-area in which the newspaper is situated or sent out. This position is the most important staff for collecting and examination the news occurred for the reason that area. The town editor usually received the largest portion of staff and assigns the majority of the local reports reporters in a organization.

Chief copy editor - The chief copy editor manages the newspaper's copydesk. The people on the copydesk read news reviews and sometimes experiences from other parts like through internet to make sure they are written in line with the newspaper's industry specifications legally. The principle duplicate editor can make the final decisions about the backup contents and who is responsible for the staffing of the office.

Copy editor - The duplicate editor especially well trained to learn the testimonies that other have written and make sure they conform to the rules of grammar and style. A backup editor also functions headlines writing and performs other tasks that help produce the newspaper every day.

Photo editor - The photography editor is not a photographer although he/she is often the circumstance that the photography editor is a promoted from photographer previsely. Image editor assign photographers and helps choose the most outstanding photos that the publication will images.

Photographer - The photographer needs pictures of local or oversea news occurrences' for the newspaper. Photographer have a variety of assignments each day. Larger newspaper publishers have sports photographers concentrating on those event. However in order to minimize cost, most newspaper's photographer will assigned to take not only sports experiences and sometime will assign for other dressing up event shooting. .

Graphics editor - The design editors is the top of the images team sometimes also the "art work office". This editor manages all the images and illustrations produced for the papers and online version.

Graphic reporter - The graphic reporter perform studies and designs informational graphics that support news reviews for the papers. A graphic reporter can be an expertise in graphic forms as well as 3D display animated visual and must be able to associate the info that can be used to build images.

Reporters - Reporters are assigned to all or any the sections of the newspaper to gather news from anywhere. They gather information about happenings and subject matter that the newspaper editors acquired choose to pay. Reporters must know how to find the useful information, skill for interview people, professional eyesight for observe happenings and write the info they gather in a way suitable to the newspaper.

4. 3. Financial position

Revenues are down over the board induced by information is now freely open to the public through the internet. Typically news and advertisement are mainly publish in newspapers since paper is the major source so you can get news round the talk about or worldwide and also like the ad. But nowadays, those information can be easily gain access to through internet also to be more up-to-date information can be reach easily in many other interacted demonstration like real-time camera of the news location, promoting product with movie clip and sensible demo and also for example cellular phone, manufacturer starting to use Display 3D to model the true cellphone with all feature for reader to try out the new feature and functions of the telephone to be able make purchasing interest. Advertising market possessed being share with Internet and other advertising like tv pay Tv set etc

4. 4. Marketing/sales capabilities

The recent marketing development switching to create reports and other advert through Internet and other interactive press. Sales earnings source had swap from newspaper duplicate to internet bottom in recent few years. Referring to the brand new York Times 2009 annual report, newspapers advertising revenues got dropped considerably and lucky that they had develop an online version and hoping to look at the loses from publication advertisement and fortunately that they had get successful reflected by their twelve-monthly report.

The Chronicle Gazette already acquired a sales team for managing customer advisement and we simply restructure those them and make necessary investment on those equipments required for digitalize posting through Internet or television set. Sales capacities are possible as Chronicle Gazette received strong customer platform and both gatherings got need to keep up to date with the latest technology and can also adopt another segment of customer to be able to broaden the vision and services bottom part. Also it is the only way can make success in this industry as it's the craze of the approaching future.

4. 5. Operational capabilities

Operational capabilities can be viewed by value-chain research to determine the competitive advantage of Chronicle Gazette, since Chronicle Gazette is a leading newspaper in a major metropolitan area and attaining paid blood circulation of 225, 000 customers and rated as first-rate newspapers over the years which mean they had built up a solid loyalty with reader. Taking into consideration the outbound logistics which deal with the magazine can be distribute promptly to the merchant and also can deliver the internet version simiutainstly for customer. Inbound logistics like material- paper and ink can deliver to printing manufacturing plant on time to reach Just-In-Time development is the aim. Procedure can be make more efficient like make use of the use of Internet and E-mail to deliver the studies and images to central office for news release in order the shorten enough time and cost. Quality of the reported items and advertisements must be assessed by main editor before press release, organize a clear workflow for each section to avoid any job duplicate and make it work with procedure smoothly.

Currently Chronicle Gazette haven't any online version, IT capability require to put into action and fund may necessitate for investage in IT equipments like machines, internet access, web-site creator and cam-recorder etc. , security issues could also need to consider since some confidential and personal privacy content may easily expose through internet and somehow each subscriber got different limitations of access specialist which related to their payment level or country.

4. 6. Advantages and weaknesses

Here is the SWOT research listed the evaluation of those opportunities and hazards available environment.



- Stay at the main magazine in major metropolitan area.

- High circulation rate and triumphed in awards for his or her hard work over the years.

- Loyalty developed with visitors.

- Traditionally style enjoyed with readers.

- Setup online version to compete with other newspaper.

- Providing discount subscription payment for online user to get customer.



- No online version of newspaper.

- No animated graphic and video clip features.

- Release time restriction because of its printed material.

- Insufficient on online publishing experience.

- Online site layout may well not be accepted by old customer.

- High investment for IT equipments.

5. ) Marketing Strategy

Recently Chronicle Gazette only sold at shops, counter and shop which covered in major metropolitan area and being a leading first-rated magazine in those area.

Providing web based magazine for online membership with low price. Providing some free media headline to get customer and web-surfer to learn in-depth and make them eager for details thus to become subscriber.

Also offering grouped subscription for customer to choose what they would like to see and taking away other unwanted reports materials by their bank account. Establishing a commitment program for contact basic subscription such as subscribe for 24 months will have 20% discount and 1 year with 10% discount offer from Chronicle Gazette.

The 24 hours online version of Chronicle Gazette can be upgrade periodically like 2-3 3 time for the latest reports which can have additional photos and videos for additional information.

In order to look after the blind people, vocal media report can be also available in the online version. Customize web page structure can be personalize to show what they need in the primary page and also pleasant for customer to provide recommendation and new for the editor.

Student membership in very attractive price and set up delivery service with their school following the peak hour so that people can make use of the uses of our own travel team and can also maintaining worker supply job to sketch the interpersonal responsibility away. Additional student dietary supplement post can be attached which those record can be immediately related to student or send by school tutor and university student. Q & A community plus some education quiz can be containing in the product for enhancing the knowledge of student. In the meantime we can offer the market requirement of specialist and business trend analysis for college student to plan their future job direction. Those attractive bundle offered to university student can build-up loyalty and get them for subscription after graduated.

Strengthen with the connection with Newspaper Connection of America for those home and oversea newspaper publishers, commercial radio and tv broadcasts that have a great chance of corporation. Those representative can show the hardship in their group and other firm may providing advice and experience to get survival.

All sales strategies through this multi-channel/direction way with different price strategies can utilize our current asset and creation capacity and showing that we have care in all degree of people.

6. Steps for The Chronicle Gazette to cope with challenges

The step for The Chronicle Gazette usually takes in order to deal with the problems can have the following:-

Short-term plan which behave within one year

Implement the web version of chronicle Gazette and talk to with I. T. specialist for establishing the first release. Investigate on those tools and make necessary funding and financial plan.

Strengthen the existing Sales & Marketing team to adopt the new challenges and providing I. T. training and justification for those staffs.

Reduce the redundant staffs and recommending early retirement for elderly staff with attractive structure.

Promoting saving of office electricity, newspaper and other equipments and lower some un-necessary expense from staff that will not have an effect on their normal article activities and procedure.

Promoting direct sales of the publication with delivery service alongside the discount price. Appealing to more customers for pre-payment to boost the company cash flow for further execution.

Introducing the coming online version and interactive advertising campaign for old and current marketer and suggest to them the coming craze and benefit for those advertising multimedia and arrange for approaching development.

Launching a free copy version to raise the customer base and coordinate with advertiser to providing their product discount coupons to achieve win-win situation.

Increasing this content of the magazine such as placing additional recruitment ads, Buy & sell, student special column etc to broaden the reader foundation.

Distributing the magazine oversea with localize information and record which seek for a way to develop oversea market.

Contact those universities and university or college to promoting college student version papers with supreme discount price with delivery service to increase the reader base and build-up the future commitment.

Long-term plan which respond for just two to five years

Review all the division staff job aspect and review their education record and working experience to judge their job performance and provide necessary possibility to increase his/her productivities.

Aim to decrease the operating charge by 10% to 30% slowly but surely.

Re-structure the organization and management team to work more efficiency and learn how to work smart in all level of personnel.

Increase more customer bottom part through different marketing like the web version and spread version. Also selling the paper for oversea customer.

Special free papers distribute in group business area like Metro, Headline to attract customer/readers. Advertisement income may increase in such distributing route.

Enhancing the web version of Chronicle Gazette with completely graphic foundation and containing real-time video news statement. Online translated version can be relished by different country people. Vocal version can be implementing for blind people and displaying how we approach to take the interpersonal responsibility.

Attracting different advertising agent and provide them for constantly advertisement position with low price.

New report subject matter and keep expanding into state-wide and foresee the pattern to entry to worldwide market instead of regional newspapers.

Employing some teenagers for form a group for creativity, brave topic posting. Closely work with the teenagers trend in order to believe and make creation for showing with visitors.

Both short term and long-term strategies need to implement collectively which can help Chronicle Gazette to gain back to lose part of revenues and develop a great many other income source. I. T. have an impact on not only in the paper industries and it have an impact on the complete world already. Presently we stick with information get older which most information are available easily through internet so we should provide reader a correct way and frame of mind to evaluation that information and recognize the validity.

7. Conclusion

Chronicle Gazette income downturn due to the losses of the advertising income. Marketer turning their advertise advertising from the original papers to other broadcasting and Internet. To be able to capture the lose market share, Information technology required to use for online version of newspaper and capture back again the advertiser to utilize or service and wide syndication channel.

Both short term and long-term strategies plan are beneficial to make Chronicle Gazette survive and even getting better than before. Keep an eye for the market trend and invention is the key point to make the business success. To broaden sources of income and reduce expenses are already true to help make the business more lucrative.

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