Internal and External Environment Analysis †MyAssignmenthelp.com

Question: Discuss about the Internal and External Environment Analysis. Answer: Introduction: The newspaper has defined the American journalism for decades, but recently it struggles to adapt to the new media landscape. The online media has overtaken the news advertising and news readership thus posing fierce competition to the print media (Pew Research Center 2016). Most of the players in the newspaper industry have diversified into this online news segment, as other suppliers are giving them stiff competition because of their digital news contents (Barthel 2017). For instance, the competitors like BuzzFeed, Huffington Post, and TV news suppliers are among the established newspaper suppliers through their websites. The revenue projects show the industry will continue to report a decline in its revenues (Atrill McLaney 2011). The PESTEL analysis tool focuses on the macro-environment that affects the industry thus shaping the competitive landscape. The industry has fair legal and political restrictions. The copyright laws and regulations continue to protect the writers as no print media can produce their work without approval (Pew Research Center 2016). The contents are never restricted because of the freedom of speech. The revenue streams depend on subscriptions and advertisements that depend on the economy. Subscribers and businesses are price elastic (Barthel 2017). With hard economic times, the subscription level has declined because of decreased readership. The revenue has fallen to $38.51 billion (NYT 2013). Subscriptions in the old newspaper industry attract wealthy, educated, and older customers whose annual income is more than $100,000 (Internet Society 2014). The industry focuses on the content to appeal to the mass. The internet has changed the mass communication model thus affecting the external environment (Internet Society 2014). The internet has reduced entry barriers thus increasing the competitiveness (Barthel 2017). The companies require low capital costs to enter the new market. The Internet connection is widespread and readers can easily access and open the sites where they can read the newspapers (Pew Research Center 2016). The online news medium seems to have increased the readership across the world compared to the prints. VRIO Framework: New York Time Maximizes the iPhone users by offering younger readers access to news Maximizes the user-generated contents (Barthel 2017) New York Times has enough resources including personnel and finance to maximize the value thus create a competitive advantage (NYT 2013). Rare Capabilities The resources need to deliver high-quality journalism using the unique strategy including the internet and digital platforms (Atrill McLaney 2011). This will give NYT an opportunity to overcome its competitors like WSJ.com, CNN.com, MSNBC, Google News, Huffingtonpost.com, The Economists, Bloomberg Business Week, The Financial Times, and Times in the market (NYT 2013). Inimitable capabilities The NYT enjoys the weekly circulation potential because of the total average circulation of 1,865,318 (Barthel 2017). The status of NYT newspapers is incomparable regarding the journalism reputation and national distribution. The company used its unique status to raise the cover price to $2.50 because of the quality journalism (NYT 2013). The resources of the company are strategically equivalent to the valuable resources (Langheim et al., 2014). The company should undertake cost-cutting strategies including outsourcing functions, consolidating operations, and use an online business model. Bibliography Atrill, P McLaney, E 2011, Accounting and finance for non-specialists, 7th Ed. Pearson Education Ltd. Barthel, M 2017, Despite subscription surges for largest U.S newspapers, circulation and revenue fall for industry overall, Pewresearch.org, June 1, viewed https://www.pewresearch.org/fact-tank/2017/06/01/circulation-and-revenue-fall-for-newspaper-industry/. Internet Society 2014, Global internet report 2014, viewed 4 October 2017, https://www.internetsociety.org/sites/default/files/Global_Internet_2014_0.pdf. Langheim, R et al. 2014, Smart grid coverage in U.S newspapers: characterizing public conversations, The Electricity Journal, vol. 27, no. 5, pp. 77-87. Pew Research Center, 2016, State of the news media 2016, PewResearchCenter, June 15, viewed 5 October 2017, https://assets.pewresearch.org/wp-content/uploads/sites/13/2016/06/30143308/state-of-the-news-media-report-2016-final.pdf. The New York Times (NYT) 2013, Annual Report 2013, viewed 5 October 2017, https://investors.nytcom.com/files/doc_financials/annual/2013/2013%20Annual%20Report.pdf.