NYT Case
Executive Summary: The New York Times Company has seen massive decreases in advertising revenue and declining readership. As a result, their major problem is that their revenues are contracting at a faster pace than they can cut costs, and therefore can no longer meet their financial obligations. As a business that competes based on differentiation led by quality Journalism, they must utilize this core competency by adapting to the digital world. The NYT should transform into a 100% online-based news outlet. By eliminating their massive fixed assets costs, they should be able to return to a profitable company within 3 years.
Analysis: It is clear that the NYT’s strategy is to compete based on differentiation, made possible through the competitive advantage of their core competency, high quality and trust worthy journalism. Their current business model is to offer content on a subscription basis and create revenue through subscription fees and charging for advertising placements. Despite their challenges, the NYT is not dead. While the newspaper industry may be a declining market, the information industry continues to grow and mature. With proper positioning, the NYT can begin to fill the void left by other newspapers that have been forced out of business. The problem is not a result of poor core competencies or a lack of competitive advantage; it is simply in their business model. As evidenced by figures 14.1 and 14.2, it is clear the NYT has an inordinate amount of financial resources. Further, they have superior supplier resources in the form of their 101 Pulitzer Prize winning columnists. As a result of these resources, NYT has the capability and allure to reach millions of readers. Their weakness lies in their inability to reach the amount of interested readers that are in the market. The NYT should learn from the mistakes of record companies, and embrace the digital age instead of fighting it futilely. The Huffington Post has proven that
Analysis: It is clear that the NYT’s strategy is to compete based on differentiation, made possible through the competitive advantage of their core competency, high quality and trust worthy journalism. Their current business model is to offer content on a subscription basis and create revenue through subscription fees and charging for advertising placements. Despite their challenges, the NYT is not dead. While the newspaper industry may be a declining market, the information industry continues to grow and mature. With proper positioning, the NYT can begin to fill the void left by other newspapers that have been forced out of business. The problem is not a result of poor core competencies or a lack of competitive advantage; it is simply in their business model. As evidenced by figures 14.1 and 14.2, it is clear the NYT has an inordinate amount of financial resources. Further, they have superior supplier resources in the form of their 101 Pulitzer Prize winning columnists. As a result of these resources, NYT has the capability and allure to reach millions of readers. Their weakness lies in their inability to reach the amount of interested readers that are in the market. The NYT should learn from the mistakes of record companies, and embrace the digital age instead of fighting it futilely. The Huffington Post has proven that