1) What stage of the lifecycle is the newspaper industry in? Please explain and justify.
Answer:
The newspaper industry is in the decline stage as sales have begun to fall and they are
now losing a lot of money. The following typically causes the decline stage:
1) Changes in demographics
Most people under 60 are more likely to look for news through electronic
devices. The number of people who still like to read the hard copy of a
newspaper is dropping constantly.
2) Shifting consumer tastes and needs
A greater focus on environment is causing a shift away from hard copy print.
By going “paperless” we are saving trees and doing our part to help out the
environment.
3) Technological substitution
This is the main reason for the decline of the newspaper industry. As a result
of technology the Internet is gradually replacing the newspapers. With Google
and Yahoo people are able to find the news they are looking for free of
charge. Sites like Kijiji and Craigslist are replacing classified ads in
newspapers. We no longer look for coupons in newspapers because there are
so many deals being offered through companies like Groupon. Not only are
these sites taking the place of newspapers but also because of technology the
news is far more accessible. We get Groupons in our email. We can access
email on our smart phones as well as news and weather reports.
Page Reference: 235-236
2) What strategies are available to the newspaper industry for dealing with declining
sales, and what do you recommend?
Answer:
1) Maintain a leadership stance
The newspaper industry could try to push through this decline with the hopes
that eventually people will come back to the hard copy print. They could also
hope for other newspapers to exit and therefore have less competition.
2) Pursue a niche strategy
Newspapers could focus on one particular niche or market and gear the entire
paper to that market. By zeroing in on one area they may be able to remain
afloat.
3) Harvest Profits
The newspaper industry could attempt to squeeze as much profit from its
industry by drastically reducing its cost. GIVE US AN EXAMPLES – IE
DOWNSIZE, RFEDUCE PRINT RUNS, FIRE SOME STAFF…..
4) Exit Early
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
Answer:
The newspaper industry is in the decline stage as sales have begun to fall and they are
now losing a lot of money. The following typically causes the decline stage:
1) Changes in demographics
Most people under 60 are more likely to look for news through electronic
devices. The number of people who still like to read the hard copy of a
newspaper is dropping constantly.
2) Shifting consumer tastes and needs
A greater focus on environment is causing a shift away from hard copy print.
By going “paperless” we are saving trees and doing our part to help out the
environment.
3) Technological substitution
This is the main reason for the decline of the newspaper industry. As a result
of technology the Internet is gradually replacing the newspapers. With Google
and Yahoo people are able to find the news they are looking for free of
charge. Sites like Kijiji and Craigslist are replacing classified ads in
newspapers. We no longer look for coupons in newspapers because there are
so many deals being offered through companies like Groupon. Not only are
these sites taking the place of newspapers but also because of technology the
news is far more accessible. We get Groupons in our email. We can access
email on our smart phones as well as news and weather reports.
Page Reference: 235-236
2) What strategies are available to the newspaper industry for dealing with declining
sales, and what do you recommend?
Answer:
1) Maintain a leadership stance
The newspaper industry could try to push through this decline with the hopes
that eventually people will come back to the hard copy print. They could also
hope for other newspapers to exit and therefore have less competition.
2) Pursue a niche strategy
Newspapers could focus on one particular niche or market and gear the entire
paper to that market. By zeroing in on one area they may be able to remain
afloat.
3) Harvest Profits
The newspaper industry could attempt to squeeze as much profit from its
industry by drastically reducing its cost. GIVE US AN EXAMPLES – IE
DOWNSIZE, RFEDUCE PRINT RUNS, FIRE SOME STAFF…..
4) Exit Early
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
