Dynamic Capabilities In Responding To Digital: A Case Study Of The Age Newspaper

PESTLE Analysis

Brothers Henry and John Cooke started the Age newspaper of Australia in 1845. The Age newspaper is continuously giving attention to economics as well as politics. According to the media report, it is founded that The Age newspaper is most read Newspaper of Victoria. As per new figures of Australia, it is fast growing newspaper (Britannica, 2018). The digital readers of Age newspaper have also increased to 2.6 Million from 23 million in the last year. The main objective of the age newspaper is to produce balanced and fair journalism so that the readers engage and trust with the brand (Fair Fax Media, 2018).

Political and legal factors- the political condition of Australia is stable, due to which it come under world’s most stable political country. It ensures the easy of doing business with government support and low corruption. Due to its stable political condition, if any new firm enter in the market with more innovative product in the market, then it will affect the sales of the product. Besides the stable political condition, if government changes and impose a new set of rules then The Age newspaper is require to work according to that which disturbs the working of the industry. In addition to the political factor, if the industry publishes any news that is not in the interest of the public, it will lead to case against the Newspaper industry (HABC, 2018).

Economic factors- the economy of the Australia puts positive impact on the businesses. From the report published by OECD, the economic condition of Australia is continued to grow which puts positive impact on the Australian businesses. Australia is one of the world’s highest GDP growth countries (The Heritage foundation, 2018).

Social factor- social factor includes the customer preference for the product. It is founded that the habit of reading newspaper in Australia is increasing largely (Morgan, 2017). From a research, it has been analysed that over 50,000 Australian are 14 of age and 16 million people every week read newspaper. Besides this, 7.3 million Australian read print newspaper including 52 million people who read weekday issues (Kalantari and Johnson, 2018). Due to these reading habit of the people in Australia, the industry will get benefit in terms of sales and market share.

Technological factors- the technology factor can affect the Age newspaper industry in both positive and negative way. Due to the increasing technological changes, the emergence of social media and various online means, people are getting information online so this decreases the sale of newspaper. Besides this, it can start the online application through which persons can get everything online. This can increase the market share of “The Age newspaper.”

SWOT Analysis

Environmental factor- it is essential for the industries to keep the environment safe while making any product.  While making newspaper, it requires the trees to be cut that are harming the natural environment (NLA, 2018). So in order to safeguard the interest of the society it is to reduce the carbon emission in large quantity. Besides it, the recycling of waste is major thing that need to keep in mind while manufacturing the newspaper.

The main objective of the brand is to increase the market share and awareness of reading among peoples of Australia. The main purpose of the newspaper is to circulate the important information regarding the issues or any event going on in the country. Another aspect of the industry is to increase the level of education among peoples. Knowledge regarding various areas will be provided to the people. For the next 10 years, the objective is to increase the growth and sales of the product by providing various offers to the customers in the market (Kokemuller, 2018).

Demographic segmentation- In this, segmentation is done based on age and income group. For the respective newspaper industry, the target group is of all age as the range of product is too low so that every group of person can afford (Karimi and Walter, 2015). Mainly, the product is for all the age group. However, the product is mostly for aged persons and youth who prefer reading newspaper.

Behavioural segmentation -The target market for these customers is based on the spending habits and their likings about the product. For the newspaper, the target audience is those persons who read newspaper as a daily routine. From the findings, it is founded that almost of the people in Australia read newspaper either twice a week or daily.  

Psychographic segmentation- this segmentation is based on the interest, behaviour, traits, values, and attitude of people. In order to target these customers, special features will be added to the product so that customers start taking the services of these products. Usually, this type of customers stick to one brand and they rarely switches to another brand. They move to another brand only in the case if it is offering them some extra features. In order to target these types of customers, some offers will be provided.

The Age Newspaper  involves the people from all over Australia. Usually high involvement of people is held in the luxurious product as they search the various markets and check the prices. However, the newspaper is daily necessity product that is required by almost all the people in the country. It is daily use product so there is low involvement of the consumer. Due to the daily necessity of the product, the consumer behaviour for the product is low involvement.

Objectives

1. Product- a product in general sense leads to nay good or service that is offering in the market. Newspaper is a low value product with high involvement of product. it is considered as high involvement product as some readers are in habit of reading newspaper daily at morning. For increasing the more value of the product, some more features will be added to the product like some offers as well magazines. For increasing the customer, faith in “The age newspaper” door-to-door service will be provided timely.
2. Price- the price of the newspaper is such that it is affordable by all the level of customer. The price of the product will depend on the two factors- prevailing competition and cost of raw material and print.
3. Place- the services of newspaper will be provided to all the cities of Australia. The printed newspapers will be first transferred to the distributers and then the distributers will deliver the newspapers to the respective areas. All the process will be held in the early morning so that customers will be delighted to use the product. The distribution of the newspaper will be delivered door-to-door by appointing respective agents. In order to achieve the objective of increased market growth and sales, in more and more cities of the Australia this service will be provided.
4. Promotion-promotion will be done through the two components- traditional as well as modern. In the starting years of the business, promotion will be done through the traditional media such as through television. In today’s time, almost all the population is addicted to television that is included in their daily routine. The uses of traditional media will aware the people about the information source. Moreover, various salient features will be  added while doing advertisement so that customers know about the extra features that it will provide. Later on, the promotion will be done through Facebook pages or by sending links. The most popular promotion tool now a day is social media.

The implementation of the 4 Ps will be carried out after the demand of the product will increase to some extent. The promotional activities will carried out after 1 year of the establishment of product. In the initial years, the promotion of the product will be done through the traditional mode that is by television or radio (Mansi Media, 2018). This will be used in the starting years so that at least the brand will cover the cost of the product and able to sustain in the brand. As soon as the demand of the product increases, the promotional methods will change. At this time, more promotional media will add to the product such as through Facebook or by sending links to the potential customers. For keeping the timely delivery of products, it will be ensure by the company to appoint specific and timely person in order to deliver the product. Almost all the people prefer reading newspaper at early morning so to keep the customers satisfy, the arrangements of specific personnel will be ensure before starting the business.

It is necessary for every company to evaluate that their objectives are achieved or not. For evaluating the target objectives, time-to-time feedback sessions will be provided. Based on these four methods, target objectives achieved or not will be evaluated-

In order to evaluate the achieved objectives, there will be feedback program for customers. In this program, there will be questionaries’ prepare and will be allocated to the customers in order to check their satisfaction or any changes that they want in the product. This method will help in knowing the preference of the customer towards the product. In case, if any problems are faced by the customers that need to be resolve. The quick action will be taken to solve the issues so that the customer satisfaction objective will be achieved. The target for selling the product in particular time limit will be set. After the completion of the particular time limit, sales of the product will be evaluated (The age, 2018). The increment in sales will indicate the achievement of the objectives and decline is sales indicates that still there is need of some changes. All these methods will help in evaluate the performance of the Age newspaper in Australia.

Conclusion 

From the report, it is concluded that “The Age newspaper” is the fast growing and most read newspaper in Australia. It covers major information that is beneficial for the customers. The main objective is to increase the awareness of people whatever is going in their own country.  The affordable price and wider market reach is the major strength of the company but it is facing tough competition from other. The target market of the product is all age group but the major focus will be given to the aged and educated persons who mostly prefer reading newspaper. To achieve the objectives of the product, time-to-time feedback will be taken so that if any errors occur, will be solved quickly.

References

Australian Government. (2018) Updating Australia’s media laws. [online] Available from: https://www.communications.gov.au/what-we-do/television/media/updating-australias-media-laws [accessed 23/08/18]. 

Britannica. (2018) The Age Australian Newspaper. [online] Available from:  https://www.britannica.com/topic/The-Age [accessed 23/08/18].

HABC. (2018) Australia is one of the world’s most politically stable countries. [online] Available from: https://www.habc.gr/australia_geopolitical.asp [accessed 23/08/18].

IBIS. (2018) Newspaper Publishing – Australia Market Research Report. [online] Available from: https://www.ibisworld.com.au/industry-trends/market-research-reports/information-media-telecommunications/except-internet-music-publishing/newspaper-publishing.html [accessed 22/08/18].

Kalantari, H.D., and Johnson, L. (2018) Australian customer willingness to pay and wait for mass-customised products. Asia Pacific Journal of Marketing and Logistics, 30(1), pp.106-120.

Karimi, J., and Walter, Z. (2015) The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry. Journal of Management Information Systems, 32(1), pp.39-81.

Kokemuller, N. (2018) Three main advertising objectives. [online] Available from: https://yourbusiness.azcentral.com/three-main-advertising-objectives-1412.html [accessed 23/08/18].

Mansi Media. (2011) Developing Marketing Strategies for Newspapers. [online] Available from: https://www.mansimedia.com/our-services/newspaper-marketing-plan [accessed 23/08/18].

Market Research Report. (2018) Pestel Analysis of Australia. [online] Available from: https://www.marketresearchreports.com/countries/australia [accessed 22/08/18].

Marketing Mo. (2018) Traditional Media Examples. [online] Available from: https://www.marketingmo.com/campaigns-execution/traditional-media-examples/ [accessed 22/08/18].

NLA. (2018) Environmental Conditions For Storing Print And Microfilmed Newspapers. [online] Available from: https://www.nla.gov.au/content/environmental-conditions-for-storing-print-and-microfilmed-newspapers [accessed 23/08/18].

The Age. (2018) ‘The Age’ is Australia’s fastest growing masthead, new figures show. [online] Available from:   https://www.theage.com.au/national/victoria/the-age-is-australia-s-fastest-growing-masthead-new-figures-show-20180510-p4zem9.html [accessed 23/08/18].

The Heritage Foundation. (2018) Economic condition of Australia 2018. [online] Available from: https://www.heritage.org/index/country/australia [accessed 22/08/18].

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