CASE ANALYSIS: THE NATIONAL GEOGRAPHIC SOCIETY

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Problem statement: -
NGS as an institution was declining in terms of traditional customer base (memberships)/ brand
loyalty
Argument: -
Staying relevant for the next century and to instill a sense of belongingness among its subscribers
was paramount for the organization. This was considered important since only 23% of members
had this sense of belongingness and it had hit the profitability and penetration of the organization.
The consumers were confused as the value proposition of NGS was not very clear to them. Also
Domestic circulation for NGM fell from 9.7 million in 1980 to 5.2 million in 2009. Various
causes can be attributed to this decline - organizational culture, organizational mission,
organizational structure and changing face of information consumption. NGS from very beginning
was risk averse organization and this coupled with formal attitude that prevailed in the
organization proved to be barrier in differentiating its offerings from its competitors. John Fahey
also realized that to be relevant to its existing and future customers in the coming generations
NGS should move ahead from the role of being just a chronicle of demise of planet to inspiring
people to care about planet but this involved serious tradeoffs like losing on key investments and
clash with television networks. Other causes are the clash of interests between organizational
verticals and non-sync of three interest groups, which resulted in slow decision and infighting
between the various functional units. This also led to overlap of project and hence brand erosion.
The lack of strategic communication between the top management and middle
management/working staff had led to confusion regarding career paths and promotion criteria.
This has led people to become risk averse and aspire for short-term personal goals and job
security. The short-term gains led to confusion among consumers and higher costs on the part of
NGS. Also NGS was not presenting a single face to the market and hence customer base was
greatly affected.
The other major cause is the changing face the information is being consumed. The trend towards
digitization of information has also affected the consumer base. The societys approach to digital
products is segmental and different verticals have different approach towards digitization. The
decline of print and the rise of digital and social media, coupled with staff frustration at an
enduring lack of coordination across different NGS units are resulting in inability to capitalize
fully on the brand.
Also NGS, which initially worked as a non-profit organization had to look after maintaining their
financial bottom line in the new age but lack of cost benefit analysis of the society as a whole and
every unplanned expenditure requiring approval of top management allowed down the decision
process and higher cost of operation.
CASE ANALYSIS: THE NATIONAL GEOGRAPHIC SOCIETY
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The much-needed consolidation was brought in with the formation of GMG. This refined the
digital media content strategies, enhanced coordination among NGS editorial units, and served the
HGS members in a much better way. This had made a creation of a senior management position
necessary who would be responsible for e-commerce, would diversify the product offerings and
keep the organization in pace with the rapid changing technology. Also as the head of e-
commerce can be relationship oriented while engaging in meaning
Therefore, this new managerial position is critical to the companys success in the long run and
will help to adapt to the market trends.
Recommendation: -
National Geographic society needs to restructure its organization structure to a more centralized
structure where its goals, missions and strategies are well communicated to its employees. The
creation of the post of a senior management official would enable the company to generate profits
by tapping onto a wider audience and cutting cost. This would also help the company reach out to
its customers with their wide product offerings. The reporting of this person is the major concern
to Mr. John Fahey.
Evaluation of options: -
The criteria for evaluating the various options are as follows: -
Structural clarity & decision-making process: -The option should help organization clarify the
roles and responsibilities, ease some internal fighting over pricing and profit sharing.
Customer Relations & Growth -The options will definitely instilling a sense of belongingness in
the customer towards the society. It will create means of meaningful engagement thus increasing
satisfaction of customers and benefiting NGS by improved involvement of customer.
Profitability: -
The option should impact profitability by creating a new channel of delivering NGSs product
offerings to all its members.
Options: -
E-commerce head report to head of Enterprise Group.
E-commerce head report to John Fahey.
E-commerce head report to CEO and president of Global Media.
Criteria Evaluation: -
1. E-commerce head report to head of Enterprise group
Structural clarity & decision-making process:-Possibility of getting captured by one of
operating units in terms of interests. Will get support from experienced team
Customer relations: Impact would be in terms of more digitization and better E-Commerce.
CASE ANALYSIS: THE NATIONAL GEOGRAPHIC SOCIETY
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Profitability: the group has experience in e commerce, encompasses licensing, retail stores and
catalog. The kind of work the position will be doing requires knowledgeable staff in the field of e-
commerce, which Enterprise group can effectively provide. This will have positive impact on
profitability.
E-commerce head report to John Fahey
Structural clarity & decision-making process:- this will underline importance of position and
maintain its neutrality.
Profitability: This would ensure that the decisions impacting the groups would be neutral and
coordinate the societys e-commerce business efforts in its mission.
Customer relations: It will lead to better integration of services of the different groups.
E-commerce head report to CEO and president of Global Media
Structural clarity & decision-making process: CEO is already reported by the book publishing,
television, film, music and radio, digital media and map units as well as NGS venture units and
hence further one more reporting might dilute the attention this position requires in terms of
societys long-term goal.
Profitability: If the e-commerce head reports to Kelly, then the decisions impacting the groups
might lead to conflicts and will increase accountability of the person. He can integrate the product
offerings of the society and be relationship oriented.
Customer relations: It will have a great impact on customer relations as reporting to CEO will
lead to better integration of services of the different groups and hence result in better customer
relations.
Action Plan:
The e-commerce executive should bring in the much-needed synergy among the different
groups with a far-sighted strategy in place.
The e-commerce executive may consider bringing magazines and books more digitized
through Apps and kindles.
The e-commerce executive may consider apps for online purchase of subscriptions.
The e-commerce executive should take fast paced decisions and consider customer value
development through holistic memberships.
Conclusion: National Geographic Society is facing erosion in their basic membership, as the
customer is confused with multiple offerings and faces of NGS. The new executive is needed to
drive innovation within the organization, maintain synergy among the groups and help build
stronger customer relations thus helping generate profits for NGS.