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Case Study 3: Will Technology Save the Publishing Indudtry

In: Business and Management

Submitted By bpittman92
Words 258
Pages 2
The Internet has had a significant impact on newspapers. The development of online communication has led to important transformations at an organizational level. The internet has involved changes in access, production and circulation of information. These changes are distinguished by the speed with which news reaches the reader, the low cost of distributing information and the opportunity to establish more direct contact and interaction with its users. Because information is available to everyone, the Internet raises the bargaining power of customers, who can quickly find the lowest-cost provider on the web. The internet also raises the bargaining power over suppliers by reducing the barriers to entry and from the elimination of distributors and other brokers that stand between them and their users. The same reduction of barriers that increase the bargaining power of customers also increases the threat of new competition by eliminating or reducing the need for a sales force and many physical assets that might have inhibited the entry of new business that could pose a threat. With a reduction in the differences between existing companies, the number of competitor’s increases, the geographic market widens making it more difficult to sustain operational advantages and puts pressure to compete on price with rivaling competition. Internet technology is based on universal standards that any company can use, making it easy for rivals to compete on price alone and for new competitors to enter the market. Some companies are better than others at using the internet, which helps those companies in creating new and better strategic

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