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The Chronicle Gazette - Term Paper Example

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A leading newspaper of United States, The Chronicle Gazette has a customer base of 225,000 customers. The past couple of years have been tough for The Chronicle Gazette as it is witnessing a decline in revenues and customer base both. …
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The Chronicle Gazette
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Download file to see previous pages This newspaper agency is going through a tough phase with diminishing revenues. Both advertising and subscription revenues are decreasing. The main cause of this downturn is that readers are now using Internet to receive all the news content for free. This advancement has increased reluctance in people to pay for newspapers now. Global recession has also obligated people to go for internet and free news instead of newspapers. It has distanced the customers from the traditional system of newspapers and also the increase in price of newspapers. The publishing costs have increased and majority of newspapers have increased their prices too. Today, online newspaper websites have gained popularity among different people (The New Times Company, 2010).
The main aim of this report is to offer the management of The Chronicle Gazette a strategic vision of where the newspaper publishing industry stands today and where it is headed over the next decade. Also, this report proposes strategies the newspaper can investigate to survive in the new business environment. It also analyzes the details of this company’s present and future performance. It also gives facts on factors which cause the turn down of this industry. The trends in newspaper industry are also analyzed with regard to strategies that leading companies of the industry follow. This report will also give details about the measures that different companies adapt to beat the losses of the industry. It will also offer details about the measures that most companies adapt to eschew the losses encountered. By considering the external and internal factors affecting industry and also the publishers, the report will give measures that The Chronicle Gazette should adapt to increase its revenues and customer base (The New Times Company, 2010). 2. State of the newspaper publishing industry today 2.1. Data on declining circulation and revenues The state of national economy is one of the basic drivers of industry of US newspaper. The economy has a distinct impact on both the circulation and advertising; Most of the costs that companies face are fixed. As a consequence, the profitability is achieved by marketing and sales. The companies need to be innovative and strategic in their market strategy to enhance the circulation and to increase profits. The bigger companies take the advantage of the economies of scale as they used variety of sources in publishing newspapers (Hoover’s Inc., 2010). The past few years have witnessed a decline in newspaper readership. More and more people are now using Internet so that they can view online and read for free. The innovations in Internet have given people the opportunity to log in and receive information twenty four hours a day. This news content is also available in genuine time and it is available everywhere all around the world all the time. Most of these news providers don’t even charge a fee. A result of this is numerous readers are not willing to pay for news content now and has an enormous impact on newspapers’ sales (Honnold, 2000). A huge reduction has been seen in the total number of newspaper in circulation in United States over a period of ten years. The number of newspapers circulated in 2000 was 115, 194,000 and now this number has been reduced to 97, 712, 000 in the year 2008. At the same time, the revenues of advertising have gone down during the past few years. The revenues have declined from $48,670 in 2000 to only $24,821 in the year 2009 as reported by Newspaper Association of America. The past decade has shown a constant downturn in profits and revenues for publishers of newspapers. This ...Download file to see next pagesRead More
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