The publisher of The Mercury newspaper has announced that, circulation of the newspaper
has decreased by 10000 readers after the introduction of The Bugle which is another
competing low-priced newspaper that was introduced five years ago. And they suggest that
the best way to make more people read the newspaper is to reduce its price below than
that of The Bugle at least until the circulation increases to the former levels. And also, they
predict that after the rise in the number of readers, The Mercury will attract more
businesses who wish to buy advertising space in the paper.
In the announcement they clearly highlight that lower price is the advantage that The Bugle
has over The Mercury. We can’t just come into a conclusion that the lower price of The
Bugle is what that has reduced the circulation of The Mercury. Reducing the price of The
Mercury lower than that of The Bugle might not work if low price of The Bugle is not the
factor that attract more readers and give the Bugle competitive advantage. Firstly, the
publisher of The Mercury should conduct preliminary research to identify the factor that
gives The Bugle competitive advantage over The Mercury.
Although they lowered the price than that of The Bugle, if the content they include in their
newspapers is not more interesting than that of The Bugle, and if their newspapers are not
worth reading, lowering its price than that of The Bugle won’t attract more readers.
Publisher of The Mercury have to keep in mind that the content they include in their
newspapers should be brand new information and that content should be put in a way that
readers find it interesting.
has decreased by 10000 readers after the introduction of The Bugle which is another
competing low-priced newspaper that was introduced five years ago. And they suggest that
the best way to make more people read the newspaper is to reduce its price below than
that of The Bugle at least until the circulation increases to the former levels. And also, they
predict that after the rise in the number of readers, The Mercury will attract more
businesses who wish to buy advertising space in the paper.
In the announcement they clearly highlight that lower price is the advantage that The Bugle
has over The Mercury. We can’t just come into a conclusion that the lower price of The
Bugle is what that has reduced the circulation of The Mercury. Reducing the price of The
Mercury lower than that of The Bugle might not work if low price of The Bugle is not the
factor that attract more readers and give the Bugle competitive advantage. Firstly, the
publisher of The Mercury should conduct preliminary research to identify the factor that
gives The Bugle competitive advantage over The Mercury.
Although they lowered the price than that of The Bugle, if the content they include in their
newspapers is not more interesting than that of The Bugle, and if their newspapers are not
worth reading, lowering its price than that of The Bugle won’t attract more readers.
Publisher of The Mercury have to keep in mind that the content they include in their
newspapers should be brand new information and that content should be put in a way that
readers find it interesting.
