Question

In the new environment, which two of Porter's five forces are critical to NYT?

Analyze them, and suggest what NYT must do to manage those forces.

Answer 1

The two major forces among the five would be

1) Threat of Entry : Since, the cost of entry in print media is lesser as compared to other industries, the threat of entry of a new competitor is always high. Also time required to enter in such business is also less, so again the entry becomes easy.

2) Industry rivalry: Due to the presence of so many competitors in the industry like Wall street journal, the washington post, financial times, the competition is ever increasing with the increase in players in the industry.

Suggestions:

1) Threat of entry: The company should try to go digital and develop new apps. These apps should be customized and should be with a local flavor. Such apps should be free to use so that it can get new subscribers. hence, the company should try to make itself so big in terms of reader base and area of operation that it becomes difficult for a new entrant to compete with it. No segment or the type of market should be left out so that their is no scope of entry into any segment as well.

2) Industry rivalry: the nyt should enter into new markets like new countries so that it can increase the reader base and out challenge the competitors by becoming a globally bread newspaper. It should also come up with new editions in different languages to woo new readers. It should offer customized news suited to that region of the type of reader so that they feel that the news is relevant according to their taste.