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The Cat and Dog

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Case 1 USA Today: Innovation in an Evolving Industry*

Synopsis: As the entire newspaper industry sits on the brink of collapse, Gannett and USA
Today work to avoid disaster and transform the nation’s most read newspaper into tomorrow’s best resource for news and information. This case reviews the history of USA Today, including its continued use of innovation to stay on top of the technological and sociocultural shifts that are rapidly changing the newspaper industry. In the face of continual competition across a variety of media sources, the future of USA Today depends on its ability to continually push the envelope of innovation and offer value-added, proprietary content to ensure continued differentiation and the future of the USA Today brand.

Themes: Product strategy, innovation, target marketing, distribution strategy, changing technology, changing sociocultural patterns, customer relationships, competition, differentiation, strategic focus, SWOT analysis

Case Summary

USA Today is the most successful and highly visible newspaper that students have seen and read on a national basis. The case provides an overview of Gannett's strategic marketing approach to launching and growing this unique newspaper. When USA Today debuted in 1982, it achieved rapid success due to its innovative format. No other media source had considered a national newspaper written in shorter pieces than a traditional paper and sprinkled with eye-catching, colorful photos, graphs, and charts. Designed to address the needs of a sound-byte generation, readers found USA Today’s content refreshing and more engaging than other papers. Circulation grew rapidly from roughly 350,000 in 1982 to approximately 5.9 million daily print and online readers today (1.8 million in daily circulation). This compares to approximately 2.12 million for second-place Wall Street Journal and 1.58 million for New

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