Most Americans can remember their father and mother sitting in their favorite chairs while reading their local newspaper. Others can remember waking up and walking outside to their driveway to get the morning newspaper before getting a cup of coffee. Also, it seems just like yesterday when a co-worker would take it personal if someone picked up their newspaper and started reading it without permission. Reading the daily paper was part of American culture and a favorite pastime. This simple activity informed the average citizen about local politics, events, crime, business, sales, jobs, entertainment, weather forecast, and one could even get his horoscope. Being informed ...view middle of the document...
Combined with the current economic conditions, advertising revenues have plummeted and some major newspaper chains are burdened by heavy debt loads. Between 2008 and early 2010, eight major newspaper chains declared bankruptcy, several big city papers shut down, and many laid off reporters and editors, imposed pay reductions, cut the size of the physical newspaper, or turned to Web-only publication.
Consumer demand and technology has changed the way news is being read and offered in current times. Most newspapers offer a general package of sports, entertainment, business, and national stories, with editors signaling the importance of the news by its placement in the physical paper. Presently, websites like Google and Yahoo are mimicking the editors by using sophisticated computer programs to automatically compile links to content from newspapers, wire services, blogs, and other sources from around the world. So with all major newspaper companies facing the same dilemma around the world, what options are available to help newspapers hold on to lucrative print readers and survive for the long haul?
As your consultant for The Chronicle Gazette, I will offer management a clear status of where the newspaper, as an industry, stands today as well as the direction it is headed in the next decade. I will analyze the current factors that impact the Chronicle Gazette as well as provide alternatives and strategies that could be implemented to help improve long-term stability and survival in the newspaper industry. I plan to dissect the market industry to find out who our competitors are while capitalizing on their strengths and weaknesses. I will identify our target market in order prioritize who our customers are and why they should buy products and service from us. Lastly, I will provide management with a roadmap to successfully catalyze market growth.
Status of the Newspaper Publishing Industry Today
2009 was the worst year on record for the U.S. newspaper industry. Total advertising revenues (both print and online) declined 27.2 percent to $27.56 billion, according to the latest figures from the Newspaper Association of America. That is $17.8 billion less than in 2007. Print advertising alone declined $28.6 billion. Classifieds were down 38.1%. Even online advertising was down 11.8 percent to $2.74 billion. This decline continues a 20-year trend in the newspaper industry as people increasingly turn to other media such as the Internet and 24-hour cable news networks for information. Daily circulation of all U.S. newspapers has been in decline since 1987 as papers have faced mounting competition for reader attention and advertising. At least 120 newspapers in the U.S. have shut down since January 2008, according to Paper Cuts, a Web site tracking the newspaper industry. Over 21,000 jobs at 67 newspapers have vaporized in this time frame with more losses expected. Newspapers are reducing their print editions, laying off staff, or...