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NEWS CORPORATION CASE STUDY - Essay Example

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News Corporation is one of the world’s largest media conglomerates in the world. The Journey began in 1923 with publishing of a local newspaper in Adelaide, Australia by Ruport Murdoch’s father…
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NEWS CORPORATION CASE STUDY
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"NEWS CORPORATION CASE STUDY"

Download file to see previous pages NC has existence in six media domains that include Cable Network Programming; Filmed Entertainment; Television; Direct Broadcast Satellite Television; Publishing, and Other (Reuters, 2012). This essay is based on the case study analysis regarding the overall expansion strategies of NC. Based on the information in the case study, it explores corporate level strategies of NC and discusses attempt it undertakes to add value to its overall portfolio. For the purpose, strategy matrixes of Ansoff product and market development matrix and corporate parenting matrix have been applied; analysis and suggestion for improvement has also been provided. Analysis for the criticism on Ansoff product development has also been made part of the essay. News Corporation media conglomerate initiated its journey in 1923 with publishing of a local newspaper The News in Adelaide, Australia by Ruport Murdoch’s father. The corporation continued growth and by year 1980 News Corporation had success in creating country’s only national newspaper The Australian, also two national magazines and 20 Provincial newspapers. Major developments in the journey of NC have landmarks. NC in 1968 expanded beyond its homeland Australia and entered UK with purchase of News of the World and to US in 1973 with purchase of The Express Publishing Company. Since then, journey for constantly increasing global footing is on way. News Corporation attempted first diversification strategy with major shift to US and bought Film Company Twentieth century Fox in year 1984. In 1989 NC entered into satellite broadcasting business in UK. It further expanded to Asia In 1993 acquired STAR TV followed by developing foothold in internet media with acquisition of My Space.com in 2005. NC has been following the technological development at each stage successfully except few exceptions. Its overall strategy has been to size the unanticipated and unique opportunity with agility no matter how much risky the new venture get. It carried strategy of providing customised product. Throughout journey in case study, NC has been managed by Ruport Murdoch. Ruport Murdoch has been described as person with intention to rule the world and so is reflected in the risky moves taken by NC. RM also has been very dominant in guiding the deep down operations and in order to get the positive results he had was free to use his political terms to support his ventures. NC has been successfully leveraging its financial, personnel and knowledge resource to expand and control the business that has international presence in various media related domains. Though financial conditions have had some difficult times but NC has been able to strengthen it with its strategy. The Ansoff (1965) developed strategy matrix using two dimension of development; first product development and other being market development. This matrix gained much popularity in business literature. The matrix with former variable on horizontal axis and latter one vertical axis provided four strategies which are: product development, market development, market penetration and diversification (Cravens and Piercy, 2008). Individually both variables have been given the credit to play crucial role in leading firm’s success; since pioneering study by Stopford and Wells (1972). Moreover, there have been large numbers of studies developing the success stories with strategies developed by combining the two variables in matrix (Constantinides, 2004; Watts, Cope, and Hulme, 1998; Delios and Beamish, 2002) (Constantinides, 2004) The Ansoff matrix being the combination of important variables of international literature has its own success levels; however, four strategies develo ...Download file to see next pagesRead More
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