Hong Kong Economic Times Case Essay

1635 Words Apr 18th, 2013 7 Pages
HONG KONG ECONOMIC TIMES
Global Strategy

LUCAS LOPEZ - FENWAY
Hult International Business School

1. Which factors have affected the profitability of the newspaper industry in general and in Hong Kong in particular over the last twenty years?

The newspaper industry has been facing a different situation in Hong Kong compared to other countries. First, is important to know that the financial perspective of newspapers in the global scenario is not the best one, as they have been decreasing their “wallet share” in the advertising expenditure from 36% to 25% in 2015 and sales are almost flat with a total revenue growth of only 1% (See exhibit 1). On the other hand, Hong Kong has been experimenting a healthy advertising revenue
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To what extent did the strategy of the Group follow the key ‘imperatives’ a Blue Ocean Strategy?

Is important to highlight that there is no evidence to conclude that the Hong Kong Economic Times Group followed exactly the Blue Ocean Strategy parameters. I would prefer to say that their plans had some common elements to Blue Ocean, but also some different approaches. The company used certain characteristics of the BOS in several of their products, such as ET Net, ET Wealth and ET trade, U magazine, etc. but they also didn’t use BO for other initiatives as the Business College or the Book Publishing as they entered into a well established industry playing under almost the same rules that their competitors did. On the other hand, there´s no evidence that HKET met this two BOS imperatives: break the value/cost trade-off and align the whole system of a company’s activities in pursuit of differentiation and low cost in any of their businesses.
The following charter is an evaluation of HKET Group’s strategy under the imperative factors of the Blue Ocean Strategy. Blue Ocean Strategy Key Factor | HKET Group Strategy / Example | Blue Ocean? | Create uncontested market space | I can say that HKET did create uncontested market spaces when they launched products such as ET Net, ET Wealth and ET trade. The company used its capabilities to build the first professional financial information platforms in Hong Kong, finding a new uncontested market. On the other
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