USA Today was first launched in 1982 as America’s first national general interest daily newspaper by Allen H. Neuharth, former Chairman of Gannett Co. Inc., back to 1989,
As of today, Gannett is a global information conglomerate that publishes 82 daily and
700 non daily newspapers and affiliated websites, together with 23 broadcast television stations in operations reaching 18.2% of the U.S population. Gannett is currently the largest U.S. newspaper group in terms of circulation with its combined circulation
(including USA Today) is 11.6 million readers every weekday and 12 million readers every Sunday. Apart from that, Gannett’s has taken a quarter of the total U.S. Internet audience, which roughly 52 million unique visitors per month.
In
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Each issues is presented in four sections that cover News, Money, Life and Sports. Its motto’s
‘An economy of words, A wealth of information’ suits best for its focus on brevity and clarity, short sentences and short words in its reporting despite critics that labeled USA
Today as junk food journalism for its terse, brash writing style and short coverage of complex issues.
In spite of the growing trend in newspaper circulation and revenue, USA Today is faced with challenges to turn into profitability. By late 1985, circulation surpassed 1.4 million but cost also double its original price per issue. For the first ten years, USA
Today incurred a loss of $600 million. Profit was only achieved by 1993 of $5 million and doubled to $10 million the following year.
Apart from growing cost, USA Today was also faced with direct competition from other national newspaper such as the Wall Street Journal, the New York Times, cable networks, nationally syndicated terrestrial and satellite radio providers such as
Sirius/XM, internet sites such as Yahoo! and Google, and blogs such as Huffington
Post. The competitors such as the Wall Street Journal are also targeting
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Global economic woes had also affected newspaper’s revenue including USA
Today as companies are cutting down their advertisement budget particularly in the automotive, retail and employment sectors. Technology advancement has also changed the way people access information. They now have variety of ways to get latest news
i.e. through print media, 24 hours television networks, news websites, mobile devices, search engines, blogs and social media sites that provide up-to-minutes news.
As a print media, USA Today has to think hard how to sustain itself in the mainstream of media industry. Larry Kramer as the new CEO of USA Today is responsible to chart and implement a corporate strategy to focus on digital media, starting with re-launch of USA Today’s online, mobile and tablet product. USA Today must continue to use various value-added services to further enhance distribution of its proprietary content and continued product differentiation to remain successful. In the face of competition in both print and digital markets, the future of USA Today depends on its ability to continue to innovate and adapt its marketing strategies to changing needs of the
Tom and the USA today team faced a new rapidly developing internet information boom. News was not just becoming accessed more by digital sources, but it was being created or changed into digital sources of information. The internet had created, in the context of the news industry, a disruptive outlet to the newspaper production, sales, and distribution. Whole new infrastructures and business strategy focused on web design, rapid information updates, media outlets, and becoming more up to date with the current technological trends in news, information, and communications. With that, Tom realized that the business expand and use its core competencies in content distribution into three formats, which would allow USA today to impact different market segments with one of three particular product/service changes. With the new divisions, the overall strategy would need to become more ambidextrous to guide and coordinate the branches under a single
Clay Shirky who wrote Newspapers and Thinking the Unthinkable (1993) argues that society doesn’t need newspapers society needs journalism to save society. Shirky supports this argument by giving a historical background to the problems newspapers face and how the problems have developed over time and the solutions society has came up with. The blogger concludes that in order for journalism to go farther new models must be created in place of past molds. Shirky directs this blog toward the current and future generations in attempt to motivate new models and methods of journalism.
The Trailing Twelve Months (TTM) of Verizon which ended in Sep. 2015 is as follows:
All information about sales and profit growth rates can be found in Exhibit A, financial overview, or in the graph below. The difference between two graphs that in exhibit A, there are only 3 years(2014-2016). By using (this years number-last years number)/Last years number) formula, the company “Sysco” improves each year in all aspects.
Problem Statement: The advent of internet brought about both challenges and opportunities for the newspaper industry. On one hand, it required redesigning a new product suited for online customers and on the other it was an opportunity to reach to 123 million potential customers in this category. Thus to keep up with the pace of emerging digitization in every field, like all newspapers, New York Times also added online reading in their product portfolio. However it only worsened the crisis the newspaper was already going through. The operating profit declined by more than 76% from 234Mn$ in 2010 to a mere 57Mn$ in 2011. The circulations were steadily declining and the new online advertising could not compensate for print advertising
The New York Times has a strong brand presence, name and equity in the United States. According to Michael Hirschorn, contributing editor at the Atlantic, “You really can trace almost any major story these days to something that originally appeared in The Times. The problem is that once it reaches the public, they may not even know it came from The Times.” Readers of The New York Times are extremely loyal as well. A daily issue is priced at $2.50 compared to $2.00 for the Wall Street Journal and $1.00 for USA Today. In addition, within nine months, 390,000 consumers have subscribed to www.nytimes.com for a premium price of approximately $4.00 a week [Table B] and 70% of print subscribers have taken
Overture, both the US and Global areas, have low CPC, but also very low Take Rates. We should further analyze these publishers by plotting them in a CTR/TCR matrix.
To understand the future of the NYT paywall, we looked at the newspaper’s recent trends in advertising and circulation revenues. In 2011, NYT Media Group derived 45% of its revenues from circulation and 49% from advertising (Exhibit 2). The NYT has
An example of USA Today’s relevance in the marketplace was in 1998 when the NBA had a lockout and players refused to play and USA Today used this scenario to modify their newspaper (Stoldt, Smetana & Miller,
USA Today has always faced challenges and opportunities. There are several challenges have affected USA Today. The newspaper has been in the adapt quick or die stage for quite some time. Most businesses in today’s economy are facing power shifts to customers, massive increase in product selection, shifting demand patterns, and privacy, security, and ethical concerns (Ferrell & Hartline, 2014). USA Today’s biggest challenges are shifting demand patterns, changing demographic of readers, competition, distribution, production costs, and technological advances, but within these challenges there are great opportunities.
USA Today debuted in 1982 as America’s first national general-interest daily newspaper by Allen H. Gannett who was Chairman of Gannett Co., Inc., until 1989 And it achieved rapid success due its innovative format. Now USA Today worth $4.7 billion and Gannett is a global information juggernaut that publishes 82 daily and 700 nondaily newspapers and affiliated websites, together with 23 broadcast television stations in operations reaching 18.2% of the U.S. population. The case provides an overview of Gannett 's strategic marketing approach and its continuous innovations due to changes in the market. Even though USA Today is a national newspaper, it is written in shorter piece and sprinkled with eye catching, colorful photos, charts, and graphs, which are never considered by any other media source and it makes the USA Today’s content refreshing and more engaging than other papers. Due to these reasons, the USA Today’s circulation grew suddenly from roughly 350,000 in 1982 to nearly 5.9 million daily print and online readers today. When comparing USA Today with other competitors like the Wall Street Journal, which has 2.12 million subscriptions and the New York Times, which has 1.58 million subscriptions, the USA Today remains the number one print newspaper and USAToday.com, is one of the top sites for news and information.
Their website which is quite similar to the paper version, offers small snippets of video with a lot of information. Introduces on April 17, 1995. This contributed to USA Today´s worldwide distribution. By June 1995 it became a free service that worked with any web browser. There was a trend shift in the early 90s toward electronic information, Gannet saw this opportunity to generate revenue from online advertisers. Their nugget size news stories, allows the readers to receive up-to-the-moment news, that consist of colourful visuals and crisp
The Chronicle Gazette is one of today’s leading newspapers in the United States, with a circulation of 225,000 customers. Over the past few years, it has been facing a steady decline in its customer base and revenues. This is mainly due to the increase of people using the internet as their means of gathering news and information. The
E Ink’s ultimate objective was to “kill paper” which means that the company was endeavoring to enter the display market as a disruptive technology with its radical innovation. (Schilling, p.46) The case study shows the company’s main goal was to disturb the old-fashioned market for books by presenting a groundbreaking method called “radio paper.”
The newspaper grew from roughly 350,000 readers in 1982 to approximately 5.9 million daily print and online readers today. USA Today is still to this day the number one print newspaper and their websites manages to stay one of the Internet’s most popular sites for news and information.