New Business Model for Heise Medien Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

New Business Model for Heise Medien Case Solution

Industry analysis

Porter five forces

Bargaining power of buyers

The bargaining power of buyer is of high force, because the internet TV are driving new innovation in products and services. The freely available online content makes the bargaining power of the buyer strong for the print media. Furthermore, through the advent of internet and the mobile news; the consumers could access to news any time via tablet or phone.(Garibian, 2013).Additionally, the cost of switching is also low, hence more power is yielded to the consumers.

Bargaining power of suppliers

In the publishing industry;the suppliers have little bargaining power,because journalists and printers all compete for the same business. However, some personalities could exert a greater impact over the content, such as: Rachael Ray & Winfrey.

Threat of new entrants

The threat of new entrant is low force in the publishing industry because of high barriers, such as: capital investment, brand identity, high customer switching cost, customer loyalty, regulatory clearance and so forth. Furthermore, the new entrants would need to illustrate both print and online business to keep pace with the new competitors.

Threat of substitutes

The threat of substitute is of high force in the wake of the digital news, social media apps and digital revolution. The preferences and habits of consumers are changing from traditional modes of reading newsto new modes of reading news. The substitutes of print media include:Facebook, Instagram, Twitter and YouTube. The internet has eroded the customers’ loyalty &it is offering a tractable and cheap marketing channel. With the iPods, magazines publishers are offering better service to the advertisers, but the results-based marketing pressure would be huge, particularly in the age of Google.

Intensity of rivalry

The intensity of competition is strong in the publishing industry. Freely available online offerings come into direct competition with the classic printed magazines. This in turn causes the readership & above all, the market of advertising to shrink. Thus, the competitors in the publishing industry are required to follow the emerging trends and to exploit the opportunities to lead the market.

Competitors analysis

In the publishing and print industry; the competitors includes: Computerworld, Computerworld, Chip, PC Magazine, Macwelt, and many others. Heise Medien is confronted with the competitive pressure and is exposed to an intense competition in the print segment where most of the subscription-based magazines have been serving the target group of IT professionals & very ambitious private users. The structure of the industry drives competition & profitability, regardless of the reason that the given market produces a product, is high tech or low tech, emerging or mature and regulated or unregulated. Despite the fact that Heise Medien provides high quality content to its consumers and there is no other print magazine on the market that has been able to match the Medien’s content’s quality.

Internal analysis

SWOT analysis

The major strengths that the company possesses are: experience, highly qualified journalists and powerful brands. Furthermore, it is one of those first companies that made online telephone book available on tablets and mobiles. Along with this, the company is strongly positioned in the print and online businesses. Additionally, the company with its Heise Online and c't makes up a second significant part of the media group. It has added new sub-brands and has taken majority shares in Preinstalled Internet Services AG, in Vienna. Furthermore, it has also earned 60000 YouTube subscribers& over 22000 Facebook fans through their offerings.

The major weaknesses of company includes the challenges in establishing a business design for the actively running Heise Medien, with its offline and online formats.

In addition to this, the company could exploit the opportunity of investing in Audio books and introducing new digital products and re-launching as well as revamping the existing digital tools and publications. Also, the company must focus on eBooks as more millennial and young generation readers prefer eBooks, which is a very important market segment, which also depicts that eBooks have the potential of having an increased demand in the near future. (Noblit, 2020)..........................

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New Business Model for Heise Medien Harvard Case Solution & Analysis