Chicago Tribune

Essay text:

real estate companies developing their own websites for advertising purposes) · There is strong presence for susbsitutes, marketers have many ways of advertising on the web Rivals (strong) · The internet is extremely saturated and there are many companies providing similar services · Customers are not bound to specific websites and are able to switch at no cost · Moderate levels of product differentiation (many websites offer similar news content and shopping opportunities through different delivery methods) · Very high fixed costs with economy of scale resulting in high entry costs · Exit barriers are moderate (computer equipment could be adapted for different use) · Industry growth is moderate · Switching costs are virtually non-existant · Brand identity is low · Diversity of Rivals is moderate (each website tries to differentiate itself from the rest) New Enrants (moderate) · Virtually any media company can enter/exist the market · Moderately easy access to inputs (news is public domain) · Expected retaliation from existing members is moderate, depending on the size of the entrant · Lack of patents, but some proprietary knowledge exists · Equipment is specialized, but can be converted for other use Substitues (strong) · Large number of substitute products · Product demand is highly affected by the price (most people will not pay for news content) · Not a commodity product · Differentiation costs are moderate · Buyers are constantly inclided to substitute by other providers SWOT Analysis Strenghts · Company has experience 8 consequtive years of earnings growth · Daily newspapers’s operating cash flow margins are 35%, which are among the best in the industry · Operating cash flow margings from Tribune’s television stations expanded to more than 41% · Tribune’s television group is the largest station group not owned by a network · The first newspaper to build a team of reporters whose primary responsibility was to produce online content...