1.
Strengths
The first strength is the diversified portfolio of newspapers that cater to various customer segments. Further, the newspaper covers entertainment, sports and celebrity news adequately. The newspaper has also scaled its national and international coverage of its news.
Weaknesses
The major weakness is that the newspaper obtains income from a single source that is advertising. Additionally, the newspaper lacks adequate online presence.
Opportunities
The first opportunity is the introduction of an online edition of the magazine.The second opportunity is the introduction of the newspaper's website
Threats
The first threat is stiff completion from the internet. The second threat is the declining demand or the newspapers in general. The last threat is the stiff competition from other newspapers such as London elite.
2.
The internet has posed stiff competition to the newspaper industry and as such the newspapers have been forced to create online editions that can be accessed instantly by the readers. The internet has reduced the number of opportunities for the traditional newspapers because the internet has reduced the costs of printing that are common in the traditional newspaper industry.. Further, the internet has reduced the amount of revenues that newspapers obtain from advertising. Associated Newspapers and News International could use the internet to increase profitability and to foster growth by introducing a website that will offer links to the latest stories. Accordingly, the introduction of electronic news will help the company to gain a competitive advantage in the news industry.
3.
The Porter’s competitive strategies that would be recommended for Associated Newspaper are focus, differentiation and cost leadership strategies. The differentiation strategy will enable the company to use the internet to advertise its transition from paper to electronic media. The change will help the company to be relevant in the dynamic world of technology. Consequently, it will gain the funding opportunities that come with the internet, and they include subscription fees, pay per use and advertising.
The strategies that will not succeed are focus strategy and cost leadership strategy. The focus strategy will not succeed well in the company because it will reduce the company’s revenues. The cost leadership strategy will not succeed because it will lower the company’s profitability and force it out of the market.
