Introduction
Overview of the industry Brief History of The Financial Daily Mission of the company Competitors
Direct
Political less significant impact on the industry compared to the affect on readership Economic overall recession in the country has hurt the industry Social customers reading behavior has led to a decline in newspaper readers Technological use of internet has affected the industry negatively
Threat of new entrants Low due to high start up costs and strong brand identities Bargaining power of buyers High because of less significant costs of switching Threat of Substitutes Low since customers in this industry are less sensitive to prices Bargaining power of suppliers Low because suppliers are providing standardized inputs Rivalry among existing competitors Low since the products they offer are diversified
Total weighted score of 3.24 The company would benefit by capturing the market share of Business Recorder Company must try and tackle the problem of customers moving towards electronic media Proposed Strategy
Financial position is less than Business Recorder and Financial Post Competitors have been existing in market for a longer period of time Proposed Strategy
Financial
Daily must work in line with its customers to grab a greater market share
Has a strong HR department and keeping a routine check on its human resource Sophisticated monitor cells to keep a check on its employees Uses fine quality inputs Ensures timely distribution of newspapers Huge R&D department deals with the marketing aspects as well
Core Competencies
Known for their good quality newspapers as compared to its competitors Strong research centre helps the company provide authentic information to its customers Recording financial data of Pakistan corporate sector
Total weighted score is 2.60 Having a strong research centre strengthens the position of the company Proposed Strategy
Encourage
employees to stay with the company Provide incentives for their loyalty
Generic Strategy
The Financial Daily focuses on provding a differentiated product. Differentiated themselves through a minimal change in price and assuring a good quality newspaper Proposed Strategy
Go
for broad differentiation strategy Cater new markets or new cities in Pakistan
SWOT Analysis
Strengths
Opportunities
Capturing the market of Business Recorder New publication agency Circulation of newspapers to Islamabad and Faisalabad
Strong research centre Loyal researchers Recording financial data of Pakistan Corporate sector Stock based information
Weaknesses
Reporting networks not strong Not able to retain employees Weak market coverage
Threats
Consumer migration to electronic media Decline in reading habits Economic conoditions
TOWS
Strengths 1. 2. 3. 4. Opportunities 1. Capturing the market of Business Recorder Strong research centre Loyal Researchers Financial data of Pakistan Corporate Sector Stock based Information Weaknesses 1. 2. 3. 4. Reporting networks not strong Not able to retain employees Weak market coverage Brand image not strong as compared to competitors
S-O Strategies 1. Using your specialized stock based information to capture market share of Business Recorder ( S4, O1 ) Using information of the research centre to enter markets of Islamabad and Faislabad ( S1, O4 ) Opening new publication agency using the Financial data of Pakistan Corporate Sector ( S3, O3 )
W-O Strategies 1. Establish new publication agency to strengthen reporting networks ( W1, O3)
2.
2.
2.
3.
3.
3.
Capturing the market share of Business Recorder to strengthen brand image ( W4, O1 )
4. Threats 1.
Circulation of publications in Islamabad and Faisalabad S-T Strategies Consumer migration to electronic media 1. Circulate stock based information to business organization on regular basis ( S4, W1 ) W-T Strategies 1. Increase market coverage by focusing on epaper ( W3, T1 )
2. 3.
Liquidity
Working Capital Cash flows FS Average
+4
+3 +4 +3.5
Market Share
Product Quality Financial Position Customer Loyalty CA Average
-2
-1 -2 -1 -1.5
Profit Potential
Capital Intensity Ease of Entry into New Markets IS Average
+3
+5 +3 +3.5
+3.5 -3.25
Conservative
FS +2 +1
Aggressive
CA
IS
-2
-1
+1 -1
-2
-3 Defensive ES Competitive
STRATEGIES
IE MATRIX
The IFE Total Weighted Score
Medium
The EFE Total Weighted Score
IV
VI
2.0 to 2.99
VII
VIII
IX
Quadrant III
Quadrant IV
As we discussed earlier that Financial daily is in a position where they have to;
Concentric diversification Horizontal diversification Joint venture
Critical Success Factors Strengths Strong research centre Loyal Researchers Financial data of Pakistan Corporate Sector Stock based Information
Weight
Publishing Mutual Funds magazine for Investors AS TAS 0.60 0.10 0.60 0.30
Introducing television news channel AS 4.00 2.00 4.00 3.00 TAS 0.60 0.10 0.80 0.30
Weaknesses
Reporting networks not strong Not able to retain employees Weak market coverge 0.15 0.15 0.10 3.00 4.00 1.00 0.45 0.60 0.10 3.00 2.00 2.00 0.45 0.30 0.20
0.10
3.00
0.30
3.00
0.30
SUBTOTAL
1.00
3.05
3.05
Critical Success Factors Opportunities Capturing the market of Business Recorder More market penetration for researchers New publication agency
Weight
Publishing Mutual Funds magazine for Investors AS TAS 0.40 0.45 0.09
Introducing television news channel AS 1.00 3.00 2.00 TAS 0.20 0.45 0.06
0.10
1.00
0.10
2.00
0.20
5.21
6.00
QSPM ANALYSIS
From the above QSPM Matrix We drawn conclusion that strategy 2 would be a good combination As it totals to 6 which is higher than any other Also it is a practical approach that world is moving towards paperless environment Also a decline in the reading hobbits of the youth