Hket Case-Strategy
1. External factors that have impacted the profitability of the newspaper industry in general and, specifically in Hong Kong, over the last 20 years:
Main factors:-
Economy and government policies-China adopted Open Door Policy for businesses. This promoted foreign trade and economic investment, and led to evolvement of many business start-ups. In 1980s, the economy was booming, Hong Kong became magnet for international trade, with its high GDP growth rate, averaging to 5.2%. With improved income and GDP growth, the quality of life enhanced over years and gave higher purchasing power to citizens. Individuals now could afford to pay for their valued-needs.
The real estate boom in 1990s generated a new market segment of property information seekers. The newspaper captured the information needs of the local business community and grew with thriving economy.
The recovery of year 2004 economic downturn also created new market opportunities in areas such as employment sector. Newspaper found its way by acting as an information sharing bridge between job-seeker and job-provider. The rebound of HK economy, particularly related to retail, employment, and the stock market-fuelled demand for advertising space.
Users’ behavioral change- As the Hong Kong population became more affluent, leisure, entertainment and consumer goods were sought after. The changed lifestyle resulted in behavioral changes; there were changes in reading habit and interests. Businessmen were seeking credible news, and leisure and entertainment lovers were seeking spicy news. The property marketing boom led to increase in demand for analytical property data. With increased businesses, need for more comprehensive information arose, giving more sections to newspaper for focusing on news issues and angles that would be of interest of professionals, business executives and managers.
Technology and innovation- With new technology and innovation, newer information media came up, affecting the
Main factors:-
Economy and government policies-China adopted Open Door Policy for businesses. This promoted foreign trade and economic investment, and led to evolvement of many business start-ups. In 1980s, the economy was booming, Hong Kong became magnet for international trade, with its high GDP growth rate, averaging to 5.2%. With improved income and GDP growth, the quality of life enhanced over years and gave higher purchasing power to citizens. Individuals now could afford to pay for their valued-needs.
The real estate boom in 1990s generated a new market segment of property information seekers. The newspaper captured the information needs of the local business community and grew with thriving economy.
The recovery of year 2004 economic downturn also created new market opportunities in areas such as employment sector. Newspaper found its way by acting as an information sharing bridge between job-seeker and job-provider. The rebound of HK economy, particularly related to retail, employment, and the stock market-fuelled demand for advertising space.
Users’ behavioral change- As the Hong Kong population became more affluent, leisure, entertainment and consumer goods were sought after. The changed lifestyle resulted in behavioral changes; there were changes in reading habit and interests. Businessmen were seeking credible news, and leisure and entertainment lovers were seeking spicy news. The property marketing boom led to increase in demand for analytical property data. With increased businesses, need for more comprehensive information arose, giving more sections to newspaper for focusing on news issues and angles that would be of interest of professionals, business executives and managers.
Technology and innovation- With new technology and innovation, newer information media came up, affecting the