Together they incorporated their newspaper company as The Washington Post Company. In its early stages of growth, the newspaper Journalistic views were influenced and directed by the owner’s own political viewpoint. In June 1933, a public bankruptcy auction was held and the newspaper was sold to Eugene Meyer. Meyer changed the direction in which The Post Journalistic writing was applied. He had a strong conviction about publishing a newspaper which he expressed in a set of principles. He set out a mission, “The first mission of a newspaper is to tell the truth as nearly as the truth may be ascertained,” (washcloths. Mom/history). Today, the organization has grown to one of the most respected and influential news outlets around the United States. Throughout the years, The Washington Post has expanded from a newspaper into a wide range of services, educational, career, magazine publishing, cable television systems and television broadcasting. With 133 years of history, it has had a lifetime of ups and downs. Part of their survival is due to their ability to adapt and understand the changes surrounding the industry. Technology has been and continues to be an essential factor in the ability to maintain a competitive advantage.
FIVE FORCES MODEL Being a part of the media industry The Washington Post has had to keep up with trends in its industry to obtain its success. There are also many forces that they are up against in order to maintain their success throughout the company. The aspects that must be evaluated are all part of the “Porter’s Competitive Forces Model”. This model gives a full layout of how to apply and uncover true sources of profitability, trends, and maintain competitive business advantages. This model also takes a look t alert competition, market entrants, stoutest products Ana services, customers and suppliers.
The Washington Post has competitors such as other newspapers, magazines, and television. Some of the newspapers that they compete with are, Washington Times, Washington Business Journal, and Washington City Paper. Magazines within the media industry that competes against this company are, “The Georgetown Voice” and the “adopt news”. There are also a number of television networks that they compete against. Along with competitors, new market entrants play a huge role when it comes to staying ahead of the game.
In this industry the barriers to entry has collapsed thanks to new technological advancements. “The steady decline of the print Journalism industry has been caused by the collapse of the barriers of entry and the ensuing greater competition for advertising revenue due to the advent of the internet” (Chug). The many substitutes of services and products of this industry are ample. There are many alternatives from the internet to other local newspapers and magazines. Due to the rise of technology it is not as common for people to purchase anything that is paper back.
This would be the retreat competition that The Washington Post may encounter. However the post never drops it competitive forces, because they also grant their customers the opportunity to view their paper via internet. The Washington Post allows their customers to view their paper for free along with the option of paying a fee. The fee will be a onetime payment of $20 and the customer will receive text messages of news directly to their phone. The consumer is number one and the post sees that they are educated on the media.
The suppliers are at a great advantage within this industry, because there are so many businesses in this industry. Overall the media industry moves and changes on a daily basis, and the Washington Post Media is at the heart of that innovation, delivering news, entertainment and advertising to customers in formats they can use whenever and wherever they are. This particularly sets the post aside from most of their competition. Their products/ service offers a powerful local, national and global reach, providing a product for every reader and a solution for every advertiser.
New entrants will not affect the post because they have made a brand name for themselves, and they have are set on a strong foundation. Its consumers are very pleased with the access that they have to the website and news that they have to offer. As for suppliers, The Washington Post will always be accessible to their suppliers based on the many different departments that they must have secured. The relationship between the supplier and The Washington Post is mutual, because the majority of the supplier’s revenue is generated from this company.
IS STRATEGY Recently The Washington Post has expanded into new fields like; Kaplan diverse and global education businesses, television broadcasting and cable television systems. Many newspaper companies are having a difficult time with advertising and profits, which is why The Washington Post Company has decided that they will reinvent Journalism on the internet. They have begun making their papers able to be received and read digitally. The Washington Post Company has found that they need to distinguish what makes them different from many of their competitors.
The Post is more focused than ever on being Washington’s paper, which meaner covering the city both as the axis of political power and as the home of Metro Washington’s more than I nee Washington t company came p with a new revamped mobile strategy that will mainly focus on Washington. The revamp mobile strategy will allow viewers easy access to public transportation, entertainment, and weather. Eventually Washington readers will be able to make restaurant reservations, buy movie tickets, and get real-time traffic routes from the site.
Although it may seem as though the Washington Post Company has come up with good information system strategies advertising revenue still continues to be an issue. ORGANIZATION/PEOPLE It is not Just technology that makes the field of management information systems unction. There are two other elements which information systems consist of the organization and its people (Lauded, page 15). The Washington Post information system is influence by the organizations structure, its history, and culture. The Washington Post has been able to survive for the past hundred years due to its adaptation and ability to keep up with the changes in technology.
In the twenty first century it is impossible for a business to survive if it does not integrate to the changes and demands of its environment and consumer’s needs. One of The Washington Post goal is, “To be creative, adaptive, flexible and intelligent enough to adapt to the changes in our business environment”. The Washington Post began as a newspaper outlet and has evolved into a powerful educational and media business. Throughout its history The Washington Post has always integrated and has continued to grow in order to maintain a competitive advantage. In 1948 The Post acquired controlling interest of WTFO radio in Washington, D.
C. , 1953 The Post purchased a television station, 1969 the company purchase the BBC-affiliated television, and in 1986 The Washington Post purchased a cable system. This system allowed the company to provided video, internet and phone service to subscribers in 19 Midwestern, Western and Southern states (About Us). “A business is only as good as the people who work there and run it” (Lauded, page 16). The organization has been a pioneer in the media world and holds a high reputation. The Post has been led by strong individuals whose political views have kept the organization as a powerful political medium.
It is the people that make up the organization and who have helped shape and maintain the organization to its current standards. The company as set their goals based on the people, “To be not Just a good, but an exceptional place for people to work, and a leader in the hiring and promotion of minorities and women,” (About Us). With this goal, the organization has kept an environment that is not only diverse but also the expectation of high ethical and professional standards.
They have the second most visited web site on the internet and are striving to continue to grow their reputation (Newsweek. Rag). Within the last year they have introduced APS for both the phone and Android handsets. They have also made their daily paper purchasing through the Amazon Kindle. All of these are pretty much business as usual though in today’s technological world where everyone wants everything right now and the touch of their fingers. Where The Washington Post hopes to distinguish them from the competition is with the development of their new website, Trove (Sleeks).
Trove is a website which is dedicated to individuals being addle to completely personalize tenet news experience. I nee wheedles wall allow users to kick what types of stories they want to see, where the articles are coming (10,000 online sources will be available) and how often they want to receive updates. The more you use the site, the more it will adapt to your preferences and give you more of the articles you are most interested in. Trove works off of an algorithm that calculates what users are looking at and helps to find other similar articles and sources that users may like.
It is very similar to the software used by Entitle where users rate movies and then other similar movies are suggested for them ((Sleeks). The Washington Post has also teamed up with Backbone on Trove to allow user to seamlessly share stories and channels with their friends (trove. Com). The Washington Post reportedly spent almost $10 million to develop and launch Trove. They look at it more as an investment than a cost. The Washington Post looks at Trove as a long term investment that they hope to continue to grow and change over time (Sleeks). FUTURE It is no secret that the current business model of the newspaper industry is under threat.
But where does the industry, specifically the nation’s beat on politics, the Washington Post, go from here? In an essay published in June, author Michael Jones, poetically explains why democracy can’t survive without Journalism and newspapers; but Journalism and newspapers can’t survive unless they adopt a global e-commerce business strategy. “The fabric of our democracy is stitched at the seams by what historians have deemed the Fourth Estate, the entity charged with keeping any eye on government, the church and the people,” Jones writes and then questions. For our society to survive, Journalists must report what they observe, but if one of the satirically most significant avenues of those observations becomes extinct, to what extent will society suffer? ” Cones 60). To determine the future of The Washington Post, we must consider its two options: extinction or adaptation. Some people believe the extinction of newspaper is inevitable because of the electronic world-at-your- fingertips movement. Additionally, since newspapers are printed on paper, the existence of the industry directly contradicts the even bigger modern environmental movement.
But moving newspapers to complete online consumption may not be the answer either. Studies have concluded that reading the newspaper online may actually leave a larger carbon footprint than reading the news on paper. Per the September-October edition of the SST. Louis Journalism Review, Charles Seltzer published results of studies he had researched. In explaining studies reviewed for the article, Seltzer concludes that when examining the environmental effect of newspapers, people often overlook end-user activity. In one study alone, it was found that, “Reading actual newspapers generates 28 kilograms of carbon dioxide per reader per year.
Online perusal of the same newspaper for only a half-hour a day exults in 35 kilograms of carbon per year,” (Seltzer). The future of The Washington Post lies in compromise: adapting a greener distribution, without alienating its functional and historical purpose. In other words, the Post must separate the news from the paper in order to survive. We know circulation is dropping, ad sales are dropping and re-invention is needed. The Post is going to rely on other avenues of revenue like it’s Kaplan educational unit, interactivity with its’ readers, globalization and being creative enough to change horizontal readers, or readers who link to the
Post tongue toner wheedles to vertical readers, or tense won sat art at teen Post Ana rarely stray. In a 2007 Fortune article, Chairman and CEO of The Washington Post, Donald E. Graham, mused that the absolute future of his organization lies in creative journalism online, “l think the future of the newspaper business will be very challenging. The Web site simply has to come through,” (Gunter). COMPETITORS The newspaper industry as a whole is an extremely competitive business, even more so now with the technology age sending many newspapers into a tailspin.
Since 2008 sight major newspapers have declared bankruptcy, with many of them inevitably shutting down. The combination of changing technology allowing potential customers to obtain news for free on the internet and the downturn of the economy has stopped the advertising revenue from coming in (Kerchief. Due to these changing times newspapers have been forced to turn to new areas in order to remain competitive. In the past it would be easy to peg the competitors for The Washington Post. As one of the nation’s largest subscription newspaper it competed directly with other big city newspapers.
Such as, The Chicago Tribune, The New York Times, and The LA Times. But as with most industries, the competition is constantly changing. When the internet explosion happened and the news was more readily available for free online it forced these newspapers to change as well. Today the competition is coming from websites such as Yahoo! News, and Google News. They offer completely free news services that have a lot of, if not all of the same stories you will see in the newspaper (McElroy). The number one competitor for The Washington Post is going to be The Washington Post itself.
They need to continue to re-invent themselves. The old model was sell newspapers and rake in the advertising dollars. Unfortunately, with the current economic situation neither of those two things is happening. People aren’t going to pay for information they can get for free and companies simply don’t have the money to pay for advertising in newspapers anymore. The Washington Post is headed in the right direction though; they seem to have accepted the changing times and are heading in a more digital direction. RECOMMENDATIONS Although The Washington Post has expanded into new fields like; Kaplan diverse yester.
I feel as though they need to improve the way the organization is being run. The Washington Post needs to think outside the box and come up with different and unique ways of attracting new and current viewers. With the tremendous drop in adverting and profits the company is slowly realizing they need new ways of creating journalism. During the first five months of 2007 ad sales, which included print and online were down 12 percent (CNN Money). In 2007 The Washington Post launched its first mobile site, which allowed viewers to look at public transaction, weather, and entertainment. It also allowed viewers to look at the paper digitally.
After launching their new web site The Washington Post decide to end all ties with the company that developed the web site and bring the responsibility in house. Although it seems like The Washington Post is trying to keep up with their competitors, they still have a long ways to go. We feel like The Washington Post needs to focus on marketing more forcefully nationwide. They should also broaden their target market and sales distributors. The Washington Post should continue marketing their APS for phone, ‘Pads, and other mobile devices. Smart phones are really the way of the future and more people are Declining to ah things electronically.
I nee last recommendation we would give The Washington Post is to maintain and continue to hire creative and strong Journalists. As CNN money magazine states, The Washington Post is a first class newspaper that dominates its local market, and they have the best shot of any at reinventing Journalism for the Internet. CONCLUSION The Washington Post and the newspaper industry provide a valuable public service. In a 2007 Fortune Magazine article, senior writer, Marc Gunter reported, “If the Post ant build a business model for Journalism in the digital world, nobody can,” (Gunter).
The Post’s impact on society and how it relates to people, organization and technology, is the key to the newspaper’s success. It’s obvious that in relation to people, readers know they want online news instead of print, which has created a change in demand for one of the nation’s oldest businesses. In terms of organization, Journalism at the Post and abroad must redesign the business of news (the product) to become more digitized, thus creating change in how it is produced, marketed, evaluated and read.
Technology is the Post’s most current and pressing challenge, but it’s also the answer at the same time, creating a unique situation for this company. The Post must understand how to use all three concepts – people, organization and technology – to continue being successful. The Washington Post must create a successful, up-to-date product that will increase sales, decrease costs and continue to educate the world. Former Washington Post Board Director,