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News Corporation Case

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Background
News Corporation’s (News Corp) background illustrates a story of a business empire built around a family business. Rupert Murdoch, New Corp’s CEO took over operations of The Adelaide News, in Australia, when his father died in 1952 (News Corporation, 2011). About 10 years later, he had a chain of newspaper companies. His acquisitions went on taking over media companies in the UK such as the News of the World, and in the US such as the San Antonio Express News. By 2010, this company had become a conglomerate with revenues of about US $33 billion and assets of over US $50 billion. The company’s portfolio includes Fox News, 20th Century Fox, Sky, MyNetworkTV and National Geographic Channel Worldwide among others (Cable Network Programming, 2012; Direct Broadcast Satellite Television, 2012; Television; 2012).
SWOT Analysis
Strengths
News Corp’s ascent to the top media conglomerates in the world is a tale of strategic choice of products to make up its diverse portfolio. Subsequently, this company has a substantial stake of the market because it has businesses in major types of media. In addition, it is involved in publishing, and its cable network undertakes production and licensing of programs and news for cable television systems in USA. The scope of this company’s activities extends to various parts of the world; News Corp operates in the US, Latin America, Europe, Asia and it has interests in Turkey and Israel among other countries (News Corp Ltd. SWOT Analysis.2012).
News Corp also gains from its position as one of the top five companies in the world, based on the millions of homes that access its media services. For instance, Fox News’s reach stood at 99 million households by 2011. Its corporate image gains because of the position it has in the mind of the audience. Therefore, News Corp can add other successful media chains and corporations to its fold without facing problems that companies experience with acquisitions. For instance, New Corp’s acquisition of DirecTV satellite television service saw it increase customer reach with about 10million households in the United States of America (Madapati, n.d.). The financial strength of News Corp helps it dominate the market because it can acquire any media company much to the chagrin of competitors. Every year sees a rise in the company’s revenue with several million dollars. For instance, the company raked in over $2,500 more in operations between 2009 and 2011 (News Corp Ltd. SWOT Analysis, 2012).
Weaknesses
The company faces unmatched competition in some areas of the media industry. Hence, when it acquires a new chain or channel it must tune it to match the company’s policy or expectation. This can be expensive or it can face resistance. For instance, the Fox TV Network was no match for other established networks such as ABC and CBS that had already cut their niche in news production. It meant that affiliates of this network, most of which were not engaged entirely in the news, objected to the expectation to provide news content only (Jensen, 1996).
Opportunities
Acquisitions into untapped markets present the best opportunity for Murdoch’s business empire. Since the profits show sufficient working capital for the company, increasing its portfolio can double expected income levels annually. The start of 2012 saw News Corp acquire Suomi TV, which is a Finnish FTA TV channel, through its subsidiary Fox International Channels. This competitive advantage even helps subsidiaries that may be underperforming. The company can also move into new and emerging markets such as Pay TV in some Asian countries (News Corporation SWOT Analysis, 2012). The Audience level projected in 2010 alone shows a growing market that stood at over 360m subscribers. Getting into new markets is Murdoch’s popular strategy that saw him increase the number of businesses from the single newspaper left by his father.
Threats
Top on the list is the proliferation of new media that seeks to take the old guards off the market. Social networks dilute news content. They are a popular spot for people instead of watching television, and so has DVD duplication prospered against the effort of filmmakers. This threat, coupled with increased competition in the media industry. News Corp competes with companies that specialize in various productions such as film (News Corporation SWOT Analysis, 2012). One of the worst setbacks is the number of cases filed against News Corp. The most recent was the phone hacking scandal that saw News of the World, a newspaper that has survived decades, go under. This case had other effects on News Corp’s growth because it had to withdraw its bid to acquire BSkyB in July 2011 (Duthel, 2011, p. 541). It was not the first case filed against News Corp. Another controversy involved its subsidiary-News America (Benjamin, et al., 2011), which was charged with hacking into a competitor's email.
Competitor Analysis
News Corp’s major competitors include Walt Disney, Concast, Viacom/CBS, Time Warner, and Bertelsmann among others (Fitzgerald, 2012, p 4). Walt Disney was ahead of the game based on the financial standing of 2009 (Walt Disney World Competitor Financial Analysis, 2010).
News Corp has over 50, 000 workers in different parts of the world where it operates which is less than Walt Disney’s over 100, 000 by 2011. Murdoch has been in the CEO’s seat for decades, and his experience and strategies have seen the company become a success. This company’s advantage over competitors is the range of businesses with about 200 affiliates (News Corporation: Company Description, 2012; The Walt Disney Company: Company Description, 2012).

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