Hong Kong Economic Times Group Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Hong Kong Economic Times Group Case Solution

Question 1:

Porter Five Forces:

Threat of new entrants:

The threat of new entrants in the newspaper industry has increased drastically with the transformation of the industry and introduction of internet in the society in not just the Hong Kong but, in the entire world. The populations all over the world including the Hong Kong have inclined greatly towards the internet and this has provided newer platforms and means for conduction business for the companies.

The introduction and launching of the free online newspaper have changed the dynamics of the industry as a whole. Although the business structure of such organizations is different to the traditional newspaper companies however; the services they provide to the consumer are same.The services that these platforms provide to their customers are comprehensive, simple and complete and that to without any charges.

This has attracted a significant and dominant customer segment towards them and the revenues and margins of the traditional newspapers have declined due to shift of advertiser’s priority towards the free newspaper platforms.

Threat of substitutes:

The threat of substitutes is high in the industry and it is due to the rapid transformation of the internet which has enabled availability of various newer platforms for information services. The introduction of mobile phones, computers, laptops and tablets along with the internet has provided organizations with newer ways of conducting business. The introduction of online and electronic media in the news reporting industry has influenced the demand of the newspapers negatively as their sales and revenues are declining globally. Although the business is still witnessing a phenomenal growth of above 7% annually however; these new platforms are a significant threat for the business in terms of substitutes in the markets.

Bargaining power of buyers:

The bargaining power of the customers is quite high in the industry and this has been due to the introduction of newer forms of media and news services platform that have been developed and introduced over the time. The trends and preferences of the customers in the markets have changed over time.

Nowadays, the customers prefer not just the news however, the entertainment and gossips with them. The customers tend to skip the advertisement and tend to utilize different platforms for the services simultaneously. The introduction of the electronic media has also shifted the demand of the customers towards graphic and entertainment materials and this is something that the traditionally written newspapers cannot provide.

The demand of the newspaper of the company is still very healthy along with positive growth rates however; the business will have to shift towards newer means of the business as the industry is rapidly changing.......................

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