• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18
  19. 19
    19
  20. 20
    20
  21. 21
    21
  22. 22
    22
  23. 23
    23

Many Swedish newspapers publish all or parts of their articles and advertisements on the Internet. The Internet newspapers are faced with several problems - one of them is to reach profitability.

Extracts from this document...

Introduction

Introduction 2 The Relevant Market 2 Description of the Present Market Situation 2 A Marketing Channels Approach 4 External Analysis 5 A Network Perspective 6 How is the Internet Newspaper Different from the Paper Version? 6 How is the Paper Version Affected by the Internet Version? 8 Is the Paper Version Threatened? 8 Other Aspects 8 General market trends 8 Convergence of Markets 8 Technological Development 9 Internationalisation 10 Strategies and Future Scenarios 10 Will the Internet Newspapers Survive? 11 1. The Coexisting of Internet Papers and Printed Newspapers 12 Strategies 12 2. The Elimination of the Paper Newspaper 18 Will the Printed Newspapers Survive? 18 Strategies 19 Conclusion 20 References 22 Printed Material 22 Internet Material and Newspaper Articles 22 Introduction Many Swedish newspapers publish all or parts of their articles and advertisements on the Internet.1 The Internet newspapers are faced with several problems - one of them is to reach profitability. Today many Internet newspapers are not profitable. An example of this is the Internet Version of Dagens Industri that had a loss of 1 million S.E.K in the year 2000.2 A big challenge for the Internet versions is thus to come up with strategies that will make their business profitable. However, the main business in a newspaper industry is the paper version of the newspaper and it is important that the strategies of the Internet version does not cannibalise on the paper version, at least in the short run. In this report we will examine and define the market for Internet newspaper. In doing this we will draw comparisons to paper versions and present some different future scenarios. Based on this we will suggest different strategies for the Internet newspapers, strategies that if possible avoid cannibalisation of the paper version. The Relevant Market Description of the Present Market Situation In this analysis we focus on the Swedish Internet newspapers that have a paper version. ...read more.

Middle

An important aspect of profitability is gaining income. We believe that to avoid cannibalisation of the paper version, the different newspaper versions must cooperate. The major strategies that we suggest are finding ways to gain income from the online paper and managing a constructive cooperation between the paper version and the Internet version of the newspaper. Strategies The strategies suggested can be divided into different levels. On the highest, structural level are strategies to position and differentiate the Internet newspapers as well as cooperation between the Internet version and the paper version. On a lower level we suggest strategies to earn income - an important aspect of profitability. Differentiation and Positioning As mentioned before, the newspapers on the Internet are facing economic problems. One solution to these problems would be to differentiate themselves from the printed newspaper and thereby provide a different product. This could also facilitate the customers' willingness to pay for the service. The Internet newspaper has to utilize the Internet phenomenal characteristics and abilities. The site must develop and renew the services that already exist. The head of the department of media-science Nils Enlund at the Royal Institute of Technology, KTH Stockholm, claims that the development has to go in a leisure-emphasized direction. This could be one way to get the customers to pay. However, before the sites have developed in this direction it would not be possible to charge the customer. Some examples of leisure activities could be shorter cuts from movies, easy computer-games, and different chat functions available on the site. A very important point however, is that you as a manager try to create your own site that differs in one-way or another from competitors.29 This strategy would be most appropriate and easier to implement for the group Evening Newspapers since they are already inclined towards leisure and entertainment. An activity that could be used for both entertainment and business is chatting. ...read more.

Conclusion

Customers could be charged indirectly through cooperation with Internet distributors. This method has however also some difficulties. Another way to gain income is to sell articles to sites that function as "information centres". We believe that the major source of income for the online papers will come through advertising. The clicking-system with pop-ups that exist today is annoying and has a relatively very small value for the online papers. Online newspapers should in the future be able to match the high incomes TV gets through commercials. One factor that we believe can make this happen is the increased usage of the Internet and the convergence of media. Advertisements and commercials on the Internet have to be made more entertaining. We think that in a longer perspective the paper version of the newspapers might be eliminated from the market. E-books may then have taken over the role of the paper newspapers, offering the same advantages that these have offered in the past. We believe that many of the strategies suggested for the online papers in a shorter perspective will be applicable even after this development. A new business opportunity that could be explored is offering "subscription packages" where the customer buys an E-book together with the services of a company. Another business opportunity that companies should look out for is the convergence of markets. Companies might be able to offer customers much more than news alone as their product. Internet newspapers might not be profitable today but they can all probably see the great future opportunities. We believe that a key success factor in this process will be to understand the behaviour of customers. A criticism to the question examined in this paper is that the coexistence of printed newspapers and Internet newspapers might not be desirable for a company. During a panel debate held at SSE, Mattias Fyrenius (SVD N�ringsliv), implied that newspapers would gladly get rid of their distribution and printing costs and sacrifice the printed newspaper for a profitable digital alternative. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Internet section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Internet essays

  1. Marked by a teacher

    "Digital Media is having a big impact on many things in this age. Examine ...

    3 star(s)

    Actually what is the difference between digitally streaming a novel through headphones or ear buds to the reader and opening the paper pages of a book? One is more eco-friendly than the other, that's all. Some argue that literacy is a major issue, but surveys show that literacy rates have never been healthier.

  2. Marked by a teacher

    ict online service

    * It can often take a huge amount of mb to a computer which can slower down your computer. I fink that thius is very similoiar to online as they were both made to do the ssme thing which was to help people learn.

  1. Online Business Activity

    The principal disadvantages within this online activity are: virus and trojans and identity theft and crimes of fraud. To prevent from this we must never give out personal information/details and never meet anyone offline. Examples Some chatrooms websites are: www.ukchatterbox.co.uk, www.messenger.yahoo.com and www.chat-avenue.com.

  2. Which sources of knowledge - books, web sites, the media, personal experience, authorities or ...

    Both people were misguided by their personal experience. These examples demonstrate the impact that bias and prejudice and have on personal experiences. Authority is usually given from people to people or a person. Consequently one would draw the conclusion that the elected authority is a reflection of the voters, due to the fact that the voters elect the

  1. In assessing the competitive position of a large online trader, we would use the ...

    Therefore threats of substitutes were quite low. Conclusion After analyzing online bookstore industry, we can conclude that the degree of competitive intensity was in the moderate level. The online bookstore industry would still be attractive and had an opportunity to make a profit since it is quite difficult for new

  2. Tesco PLC has an effective Recruitment and Selection however the are advantages and disadvantages ...

    This in turn could be given to the department which consists of this job and then be examined.

  1. An explanation of the impact of availability of electronic information on individuals and society.

    The college will be closed. A reason why some people may not want internet access may be because they are scared as they may not understand the internet or because of the cost. And argument which is often used by the elderly is that they have got so far through life without it they can manage a little bit longer.

  2. The Values Of Online Recruitment To Organisations

    Many recruitment specialists and the Chartered Institute of Personnel and Development (CIPD) agrees that the main advantages of online recruitment are that it is quicker, and reaches a wider range of jobseekers than traditional advertising. It is also cheaper, as companies can minimise printing and postage costs.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work