AA-2009-020

Newspaper - The Endangered Industry

Introduction This assessment prompts the students to analyze the issues confronting the traditional newspaper industry in the wake of digital era. The students are expected to suggest suitable model for adopting e-business in the traditional business of news printing. This assessment is suitable for both undergraduate and post graduate courses in e-business, information strategy and management information systems.

Keywords E-business, e-business strategy, Information systems strategy Geographical setting: US

Authentic Assessment Authentic assessment is a form of assessment in which students are required to perform tasks that demonstrate the meaningful application of knowledge to situations that mirror the kinds of problems they are likely to face in the real-world. An authentic assessment item can be used to facilitate student learning in a number of ways, such as in-class discussion, as an individual assignment, a group assignment or for examination purposes.

This authentic assessment was prepared by Professor Kamna Malik. The information presented here has been compiled from published sources and is not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright 2009 by U21Global Pte Ltd. To order copies or request permission to reproduce materials, email cases@u21global.edu.sg or go to http://u21global.edu.sg/cases. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise without the permission of U21Global Pte Ltd.

THE CONTEXT
A morning without newspaper may be the most dreadful dream for many people. Many readers even subscribe to two or more newspapers to get wider perspective on the latest happenings. Even today, a significant population the world over - would accept this fact but gradually the scenario seems to be changing, or at least this is what the declining figures of newspaper companies suggest, with1 New York Times and Tribune filing bankruptcy and San Francisco Chronicle announcing a cost cutting spree after witnessing a 7% decrease 2 in circulation over a period of six months. US newspaper industry seems to be

Image Source: http://toddand.com/blog/wpcontent/uploads/2007/04/newspaper.jpg

under crisis3. Conventionally, a newspaper 4 is a regularly published print product containing information vital to the function of the market it serves. Gradually, it is emerging that newspaper is not about the ink and paper but about content. Companies are realizing that it is increasingly getting important to meet the growing needs of internet generation. You take readers and advertisers who were already migrating away from print, and add a steep recession, and you've got serious trouble, says 5 James Surowiecki, New Yorker. Is it a bite of recession or is it an opportunity squandered, as Jeff Jarvis of Buzzmachine 6 reacts to the state of Chronicle, .that should have anticipated the importance of October, 1994, when the commercial

A year marked by change: the embattled newspaper industry witnessed many significant developments in 2007. Retrieved Aug 23, 2009 from http://www.entrepreneur.com/tradejournals/article/175286879.html 2 Deveson, M. (2009, Nov 27). Crisis in the US newspaper industry. Retrieved Aug 23, 2009 from http://news.bbc.co.uk/2/hi/americas/7913400.stm 3 24/7 Wall St (2009, Mar 9). The 10 Most Endangered Newspapers in America. Retrieved Aug 23, 2009 from http://www.time.com/time/business/article/0,8599,1883785,00.html 4 Retrieved Aug 23, 2009 from http://www.newspaper-industry.org/newspaper.cfm 5 Deveson, M. (2009, Nov 27). Crisis in the US newspaper industry. Retrieved Aug 23, 2009 from http://news.bbc.co.uk/2/hi/americas/7913400.stm 6 Deveson, M. (2009, Nov 27). Crisis in the US newspaper industry. Retrieved Aug 23, 2009 from http://news.bbc.co.uk/2/hi/americas/7913400.stm

browser was introduced, that could have reinvented itself over a luxurious decade and a half. But now, instead, it's hurry-up-or-die for the Chron. While Chronicle and other leaders in newspaper industry have their presence in online news segment also, it is far from covering the losing revenues from print. More often, information on the net has been offered for free. Experts in the online space suggest that news companies should base their sales on micro payment enabling the Image Source: http://www.sfgate.com/ convenience of personalized digital paper for a reader. Opponents, however, do not see this as a good revenue model. Management of San Francisco Chronicle wonders what should be its next move. While most of them visualize closure of business as their near future, they are also getting vigilant of emerging business models7 in their industry, such as Bakersfield (http://www.bakersfield.com/) and its initiative www.printcasting.com which provides a place for individuals, schools and other organizations to create their own digital magazine. Can e-business hold a solution for Chronicle? Should Chronicle zero in on click only model? How should they compare it with the existing brick and click model to find a workable solution?

THE TASK
You are an e-business consultant. You have been invited by San Francisco Chronicle to analyze the scenario of newspaper industry and suggest them if adopting new-age e-business models can help them survive the current down turn and make them ready for future.

GUIDE TO THE TASK

The Online Experiments That Could Help Newspapers (2009, Mar 8). Retrieved Aug 23, 2009 from http://www.businessweek.com/technology/content/mar2009/tc2009038_509195_page_2.htm

Analyze the implications of emerging trends in the digital space for Chronicle. You can in particular analyze the following: What are the opportunities and threats for Chronicle in the conventional newspaper business? Is it advisable for Chronicle to operate in print only, online only or dual mode? Assuming you suggest online or dual mode of operation, what atomic model(s) should Chronicle aim at for survival in the digital space? In view of your suggested atomic model(s), what will be the impact on its value chain?