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Strategic Planning at The Chronicle Gazette

MGT 195-1

Business Policy and Strategy

Term Paper

INTRODUCTION

1. The purpose of this report is to explain the current state of printed newspaper publishing and where it is headed over the next decade. In addition, it will provide a strategic vision to assist the Chronicle Gazette in implementing strategies that will allow the newspaper to survive in today’s economy. I will also highlight what challenges other newspapers in the industry are facing, external and internal assessments to understand why circulations and revenues are declining.

2. I will identify strengths and weaknesses of the Gazette and try to provide the publisher with ideas and feedback to remain competitive in the newspaper industry.

STATE OF THE NEWSPAPER PUBLISHING INDUSTRY

1. The newspaper industry has been in decline over the past five years. Research has revealed that during 2009, revenue decreased by 26%. The total reported loss over the last three years was 43%. In addition, printed circulation has declined by 5%. The Newspaper Association of America has estimated 2009 revenues at $10 billion dollars, which was a 10% decline from its apex in 2003.

2. In 2010 for the first time in 5 years, newspaper businesses suffered a revenue decline in the single digits. However, the online revenue stream increased by 14% the last quarter of the year.

3. Newspapers still remain the largest source of information for news in the United States. Studies have shown that newspapers have reached two-thirds of America’s Internet users and an estimated total of 164 million people read printed copies each week.

4. This decline has had an impact on all major newspapers, statistics show that in 2010 among the top 25 selling papers, the San Fransico Chronicle lost 22.7% in weekday sales. New York Times

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