Mgt 195 – the Chronicle Gazette
1. IntroductionThis report is to offer the management of The Chronicle Gazette’s Executive Committee strategic vision of where the newspaper publishing industry stands today and where it is headed over the next decade. I will provide you with strategic planning ideas to anticipate environmental changes and help you better prepare to counter them. Today’s business environment requires the organization to be dynamic and prepare for almost daily changes. Strategic planning is the key navigating the changing environment of business today.2. Current State 2.1 Decline DataThe Chronicle Gazette’s circulation numbers have been steadily declining in the past eight years. Total subscription numbers have fallen be a total of 35% overall. Because of the decline in subscriptions, advertising revenue has dropped by a total of 28%2.2 Status of newspaper leadersThe Chronicle Gazette is just one publication affected by a drastic decline in circulation numbers. Of the top 25 newspapers in the United States, all have posted declines in circulation in the last 10 years. At 395 daily publications in the United States, weekday circulation has declined over 7%. Sunday circulation for 557 daily newspapers has declined more than 5%. Large publications are not immune from the decline. The USA Today, which boasts long-time immunity from industry circulation trends, reported a decline of 7.5%. The New York Times also reported a smaller decline than the industry standard with a 3.6% decline. Both of New York City’s major tabloids reported major drops in weekly circulation. The New York Post and The Daily News’s numbers fell 20% and 14%, respectively.
3. Why newspapers are facing declining circulations and revenues3.1 External assessment3.1.1 Economic ForcesThere are a few economic considerations to review when determining reasons for decline in newspaper circulation. 1. The low overhead cost of making the news available to the consumer makes the digital marketplace an attractive option for news outlets.2. The ease, versatility and customer reachability make online advertising a valuable option. 3. As the site owner, realizing the advertisers’ need for your medium makes this relationship complete. 3.1.2 Social, cultural, demographic and environmental forcesResearch shows that the younger generations who know only the most modern technological sources are accustomed to digital information sources. The oldest generation studied (55+) are habitual readers of print news. Unfortunately, as the younger generations grow older, the number of print-readers will be grow fewer and fewer. While the older generation seeks more factual and real news, the wide variety of younger-based topics are dominating the digital media scene further cementing the older generation to print. Unfortunately, this has an expiration date. It is a statement to why paper subscriptions are declining.