Strategic Opportunities and Threats

Respondents were asked to stand back and look at the overall business to list the biggest opportunities and the biggest barriers/threats to the organisation......

OPPORTUNITIES: High Importance

• MAKING THE MOST OF ONLINE & DIGITAL, which is a key theme running through the whole survey. Mobile and ereaders are included in this and not just the internet. The key areas highlighted are:
  • Creating new editorial products for the new platforms.
  • Creating new added-value services for readers/users, including upselling/cross-selling other products and services.
  • Creating multi-platform advertiser packages.
  • Developing customer insight and data.
  • Diversifying into other activities (e.g. events & supplements).

• SEEING OFF WEAKER COMPETITORS through closure or acquisition is seen as a major and positive result of the recession.

OPPORTUNITIES: Mid Importance

• OVERSEAS MARKETS in terms of both readers/users and advertisers.

OPPORTUNITIES: Low Importance

• STREAMLINING THE BUSINESS, taking the opportunity to review and improve processes and working practices.
  
• NEW AUDIENCES, including niching, breaking down existing audiences into smaller sub-groups for more tailored and personalised products.
  
• DATABASE OPPORTUNITIES, improving CRM, generating names for acquisition and leveraging more value from a name.
  
• NEW PRODUCTS, both online and offline (although full-scale print launches are not a priority for the foreseeable future).
  
• SUBSCRIPTIONS, using data-driven marketing techniques.

THREATS: High Importance

• REDUCING AD BUDGETS, driven by (1) the current recession and (2) long-term structural change to specific markets, especially classified ads, as they migrate online.
  
• INCREASING COMPETITION with a resultant oversupply of news, information and entertainment, accelerated by the internet and free print sources, producing price-cutting by weaker rivals and consolidation. The internet is a complex medium, both a complement and a competitor, without a working, profitable business model and demanding a focus and knowledge beyond many publishers’ resources.

THREATS: Mid Importance

• LACK OF RESOURCES, in terms of both the people and the money required to drive increasingly complex products and diverse routes to market.
  
• FINANCING / CASH FLOW / BAD DEBTS.

THREATS: Low Importance

• NEGATIVE THINKING. Half of the battle is a positive and can-do attitude.
  
• RISING COSTS, particularly postage and retail promotions.
  
• OVER-ZEALOUS COST-CUTTING.
  
• STAFF QUALITY to manage a fast-changing environment which demands new skills.
  
• TOO MUCH RED TAPE, especially for smaller companies.