BA 462 Case 3
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School
Pennsylvania State University *
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Course
462
Subject
Information Systems
Date
Dec 6, 2023
Type
Pages
5
Uploaded by moayadmustafa2002
Case 3
1. Assess the situation that NYT faces in mid-2015.
In the middle of 2015, The New York Times was dealing with a number of problems.
Despite an increase in digital advertising revenue, conventional print advertising
revenue has been dropping off swiftly, and unable to make up for it. This posed a severe
problem because print advertising had been the newspaper's primary source of income
for a long time. Another element of increasing competition for the newspaper was the
availability of tailored information and real-time news updates via internet news sources.
This showed how users are finding online news and information sources to be
increasingly popular. The New York Times has a number of issues to deal with in the
middle of 2015. The revenue from digital advertising was rising, but it wasn't enough to
offset the sharp decline in print advertising revenue. Since print advertising had been
the newspaper's main source of revenue for a long time, this created a serious issue.
Online news sources, which could provide readers with customized material and
up-to-the-minute news updates, were another factor in the newspaper's increased
rivalry. This implied that more readers were receiving their news and information from
online sources.
Print advertising, which was the newspaper's main source of income, was rapidly
declining, and the growth in digital advertising revenue was inadequate to continue the
trend. Online news sources posed a bigger threat to newspapers since they could
provide consumers with personalized content and real-time news updates. The
newspaper also needed to change to reflect readers' changing habits as they
increasingly used social media and mobile devices to access news. The NYT needed to
develop a new strategy in order to adapt to these changing patterns and remain
relevant in the digital age. Additionally, as readers grew more accustomed to reading
news on their mobile devices and social media platforms, the newspaper needed to
change to reflect their changing habits. The newspaper needed to develop a new
strategy to adapt to these evolving trends and remain relevant in the digital age. The
newspaper also had to deal with credibility and trust concerns, which were becoming
more significant among readers as fake news and misleading information spread.
2. What are the main strategy options available to NYT? What business models
exist for NYT’s online business, and what are their relative merits?
The primary options for strategy accessible to NYT include keeping an eye on the
traditional print newspaper business model while searching for ways to reduce costs
while preserving newspaper quality. One option is for the newspaper to continue
emphasizing the well-established print newspaper economic model. Finding strategies
to reduce costs while maintaining the newspaper's quality would be required. This
strategy could not be sustainable over the long run given that print advertising revenues
are expected to continue decreasing. enhance your online presence and invest in the
development of new digital goods to attract a wider audience and enhance the revenue
from digital advertising. The newspaper has the choice of expanding its online presence
and investing in the development of new digital goods in order to attract a larger
readership and make more money from online advertising. By selecting this strategy,
the newspaper could be able to expand its readership and raise money, but it would
need a significant investment in digital infrastructure and technology. Adopt a hybrid
business approach that combines the benefits of print and digital. The third option for
the newspaper is to use a hybrid business plan that combines the benefits of print and
digital businesses. In order to do this, money would need to be invested in the digital
business in order to grow into new areas and boost revenue while simultaneously
leveraging the credibility and reputation of the print journal.
The NYT will charge readers for access to its online resources in accordance with this
approach, which is one of the business models for the newspaper's online operations.
Despite the fact that this structure offers the benefit of generating a consistent flow of
revenue from devoted readers, it also has the risk of discouraging potential new readers
from accessing the material. Ad-supported model: Using this form of business model,
the newspaper makes its online content available without charging a charge in return for
online advertising revenue. Although this strategy has the benefit of reaching a bigger
audience, it also has the disadvantage of being completely reliant on the advertising
industry. In accordance with the membership model, the newspaper offers members
access to a variety of advantages, such as exclusive events and content. The benefit of
this strategy is that it can produce a consistent flow of cash; nevertheless, the cost of
setting up the membership system is a disadvantage.
3. What recommendations would you make to NYT’s head of strategy, Arthur
Gregg Sulzberger?
The following strategies are what I recommend doing to deal with the issues the NYT
was facing in the middle of 2015. enhance your online visibility and invest in the
development of new digital goods to attract a wider audience and enhance your
advertising revenue online. The establishment of new digital goods and an expansion in
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