Hi, share your knowledge with the community!

How to generate revenue from the new website for a newspaper company?

Anonymous A

Hello,
Our client is a traditional newspaper company (only hard-copy) that is considering to establish a website to increase revenues. What factors would you consider to help the client?

How would you structure the case? Where would you include subscription, advertising revenue etc?

Customer preferences
*Key segments
*What do they want?
*Their preferred dist channel (hard-copy vs online)

Company specifics
*Content (match or mismatch with the customers)
*Capabilities (IT, design etc)
*Financial resources

Competitor Analysis
*Key players
*Market share
*What are they doing on that angle and prod/ content differentiation if any?

Strategic Issues
*Risk of losing current customer base (maybe they are old and does not prefer online channels)
*Brand confusion

Thank you very much.

(edited)

  • Upvotes
  • Date ascending
  • Date descending
Carlos replied on 04/02/2018

Hello!

I would suggest the following structure:

1. Newspaper market: hardcopy vs. online: size (readers), growth, customers (segment by age, interests, preferences -price, quick access, quality of contents,...), competition (key players, evolution, product -general, sport, economic news-, response to our move), barriers (they should be lower in online segment).

2. Company: capabilites, recognizition, customers base, current revenues and costs, financial situation.

3. Effect of establishing a website: on revenue (subscription fees, advertisement, synergies with hard-copy (access to more readers, increase visibility) and cannibalization of hard-copy selling), on cost (labour -same content as hard-copy?-, maintenance, marketing), cultural integration).

Anonymous B replied on 03/31/2018

Hi there, the overall structure seems good, I would recommend to add a bucket "profitability" and include there the economics of the website.

You would then consider the revenues from subscription and advertising as some of the new revenue streams and you would also have to think about key cost elements (website development and maintenance; cost for writing the content - if incremental vs paper edition).

I would also add any positive/negative synergies with the paper edition (content creation cost, cannibalization of paper edition readers) directly in this profitability bucket

Related BootCamp article(s)

Focusing on The Core: Mock Interviews

It is to practice as many cases as possible - both as interviewee and as interviewee. Here are a couple of guidelines to help you get started

2 Comment(s)

Case Studies

The case study is the most important element of the case interview, which you'll have to nail in order to get into strategic consulting. Here you can learn the specific skills and concepts necessary to solve them.

4 Comment(s)

Related case(s)

Bain case: Asian lubricants producer

Solved 51.7k times
4.7 5 25397
| Rating: (4.7 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Deloitte Consulting case: Footloose

Solved 31.8k times
4.5 5 11864
| Rating: (4.5 / 5.0)

Duraflex is a German footwear company with annual men’s footwear sales of approximately €1 b. They have always relied on the boot market for the majority of their volume. In this market they compete with three other major competitors. In the fall of 2013, Badger – one of Duraflex’s competitior ... Open whole case

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Roland Berger case: Light on!

Solved 24.7k times
4.7 5 12620
| Rating: (4.7 / 5.0)

LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve ... Open whole case

DHL Consulting case: Bike Shop

Solved 24.3k times
4.3 5 10145
| Rating: (4.3 / 5.0)

You have been hired to support the owner of a bike-shop as a business consultant. The bike-shop has suffered a significant revenue decline during the last year, and now the owner would like you to assess the situation and options for the way forward. They want to know last year’s profit, i.e. how i ... Open whole case