MAF 640

a)      Discuss the impact of 2 relevant general environment segments on the newspaper industry.

·         Declined in sales- changes in reader  behaviors and  growth rate of internet use, e-commerce and online publishing has exceeded all expectations, were caused more people attractive to use online system to read newspaper and these will give the impact of demand for newsprint and printing.

·         Customer Preference – now days all, people more easier to get information via internet. More people are comfortable to use online to get information. By using the online newspaper, the users can access yesterday, last two day newspaper rather than physical newspaper not is sell after the day.

 

b)     Would the industrial organization (I/O) model or Resources Based Model be suitable for Daily Newspaper in formulating its strategies to achieve above- average returns? Support your answer with 2 reasons.

  I think Daily newspaper should use Resource Based Model. Daily Newspaper should review the resources allocation in the business. They should review “what can the firm do best”. In this situation Daily Newspaper should think the best business strategy how the scare resources to be used for maximum their sales target.

 

Daily Newspaper should identify the asset used in production to maximize the opportunities given by expanding their sales. By the opportunity that they have, Daily Newspaper should identify the firm resources, strength and weaknesses compared with competitors. Maybe the resources are Land, Labor, Capital and the Entrepreneur join together to run the business. The strength of DN might be can attract the reader with the hot news, up to date information and also should implement the new strategy by add some more contents in their newspaper like recipes section, hobbies section, learning progress,so by the way add some more content in the newspaper  will attract all the reader all age to buy a print news.

 

Daily Newspaper should determine the firm’s capabilities in producing the best news to attract the reader. Daily Newspaper should think what it can do better than its competitor. Daily Newspaper Capability which is capacity of an integrated set of resources to integrative performs task or activity.

 Daily Newspaper also should identify 4 attributable of resources and the capabilities of the competitive advantage:-

 

1.      Valuable – where as Daily Newspaper (DN) should exploit the opportunities or neutralized threats in its external environment.

2.      Rare – possessed by few , if any ,current and potential competitor

3.      Costly to imitate- when other firms can’t obtain them or must obtain them at a much higher cost.

4.      No substitutable-DN should organize appropriately to obtain the full benefit of the resources in order to realize a competitive advantage.

 

 

DN should locate an attractive industry. An attractive industry where as industry with opportunities that can be exploited by the firm resources and capabilities. Maybe DN should increase their market strategy to increasing their sales.

 

Select a strategy that the best allow the firm to utilized its resources and capabilities relative to opportunities in the external environment. The strategy formulation and implementation, where as the strategy action taken to earn above average return.

 

C) Explain 2 actions that Daily Berita should take to increase sales of its printed newspaper.

 

• Membership Card

By produce the membership card and give a point to the reader and the point collected by the reader, the can redeem their point into prizes. By this way will attract the reader loyalty. At the same will increase DN sales.

 

• Contest

 

Print the form contest in the print news will attract the reader to buy print news paper to participate the contest by the publisher.