Case Study on "Analysis About Fairfax Media Limited"

Case Study 8 pages (2519 words) Sources: 10 Style: APA

[EXCERPT] . . . .

Media Analysis

The following pages focus on analyzing the situation of Fairfax media, one of the most important companies in the media industry. The paper presents the most important factors in the external environment of the company that are able to influence the evolution of the media industry, but also the internal environment factors that characterize Fairfax Media. In addition to this, the paper identifies some of the most important problems that affect the situation of Fairfax Media. The factors that determine these problems are also presented. The Recommendations section presents certain strategies that the company can develop in order to improve its situation.

Situation Analysis

External Environment

Industry Situation

Competitor Analysis

Market Analysis

Internal Environment

Evaluation of the Company's Internal Capabilities and Core Competencies

Segmentation, Targeting, and Positioning Strategies Evaluation

6

Evaluation of the Company's Marketing Mix

6

1.2.4. Financial Evaluation

6

2. Problem Identification and Discussion

Recommendations

Reference list

12

1. Situation Analysis

1.1. External Environment

1.1.1. Industry Situation

The media industry is influenced by a series of factors that determine its characteristics. The intense competition in this business field is one of the most important factors that affect this industry. In other words, companies in this business field are competing for the same number of customers. Their strategy is based on differentiation, because their costs are similar. In addition to this, the media industry is influenced by the technological advancements that must be addressed by companies in this industry. The use of technological developments significantly increases the costs associated with the activity of these companies.

However, the media industry is likely to produce significant incomes to investors. This situation can be attributed to the advertising on different media channels that companies in different industries must address. The needs and preferences of customers in this industry are determined by the Internet.

1.1.2. Competitor Analysis6

There are numerous competitors that Fairfax Media must address. Some of the most important competitors are represented by APN News, News Corporation, Consolidated Media Holdings, and others. The business activity of these companies is structured same as the activity of Fairfax Media. This makes it difficult to develop a strategy based on differentiation (My Share Trading, 2012). However, these companies have been significantly affected by the financial issues determined by the crisis. The profits levels of these companies have reduced. It is important that Fairfax Media uses the situation of these companies in order to improve its situation.

1.1.3. Market Analysis

The situation of the media market does not resemble that of other markets. The characteristics of this market determine its evolution that is affected by other factors in comparison with other services industries. It is difficult to analyze the media market. It is more useful to analyze the situation of different segments in this industry. This is because the media market is represented by different segments, with different evolutions.

The TV segment is characterized by a reduction in profits of investors in this segment. Numerous viewers prefer to focus on online stations instead of following them on TV. In addition to this, the availability of the Internet has significantly influenced the development of the online media segment. The online segment requires reduced investments in comparison with other media segments, which makes it easier for smaller companies to address this market.

1.2. Internal Environment

1.2.1. Evaluation of the Company's Internal Capabilities and Core Competencies

There are several capabilities and competencies that Fairfax Media relies on. Such capabilities are represented by the tradition that the company has on the country's industry, the high quality of its products and services, the flexibility of its strategy, the performance of its employees, and the interest in customers' needs. These are some of the most important factors that influence the success of Fairfax Media.

It seems that people trust companies with important tradition on the market that reflect their capabilities in their success and in the fact that they satisfy their customers. In addition to this, it is important that Fairfax Media supports the quality of the products it offers its customers. The company has established high quality standards that must be reached by other companies in this field also. This helps Fairfax media have a better position on the market in comparison with other companies.

Another important capability that characterizes Fairfax Media is represented by its flexibility. This means that the company is able to identify and to adapt to market trends, to environmental factors that affect companies' activity, and to customers' needs and preferences that are in accordance with technological advancements. The skills of the company's managers and employees are another factor that the company benefits from in its attempt to improve its position on the market. In order to be successful, companies must satisfy the needs and preferences of their customers. But these needs change in accordance with different environmental factors. Successful companies have an increased interest in identifying these needs, and in developing strategies intended to address these needs. This situation also characterizes Fairfax Media.

1.2.2. Segmentation, Targeting, and Positioning Strategies Evaluation

The most important customer segments targeted by Fairfax Media are represented by customers that prefer digital media. The company has identified the digital segment as an important growth factor in this industry. Therefore, Fairfax Media is trying to develop its online activity with a series of applications intended to increase its number of customers.

1.2.3. Evaluation of the Company's Marketing Mix

The most important factor in the marketing mix of Fairfax Media is represented by its product segment. The product development investments made by the company reflect its interest in addressing large customer segments. The distribution strategy benefits from technological developments addressed by the company on its online media segment (Wilson, 2009). The pricing strategy must be developed by the company in accordance with the needs of its targeted customer segments.

1.2.4. Financial Evaluation

The profits levels of Fairfax Media have reduced. This situation can be attributed to a series of factors. The most important factor is represented by the financial problems determined by the crisis to the company's customers and business partners.

2. Problem Identification and Discussion

The situation of Fairfax Media does not reflect the objectives established by its managers. In other words, Fairfax Media has certain problems that must be addressed by strategies intended to identify the causes of these factors, and to improve the company's situation. Some of these factors refer to the external environment, while others are determined by internal issues.

The problems determined by the external environment are represented by increasing competition, technological developments, reduced incomes of customers. The company cannot influence the increasing competition on the media industry. This industry cannot be influenced by companies in the media and by the government. It is the customers that influence this market and investors in media companies. Therefore, it is important to identify the characteristics of competitors that help them increase their number of customers. This analysis must be used by the company in its attempt to develop strategies based on market trends. The increased competition that affects the activity of Fairfax Media can be found on the digital media segment. This is because the reduced investments required in order to address this market allow numerous companies in the online environment to enter the media industry. Therefore, the company should focus on intensify its research and development process for the online media segment.

The numerous technological developments in the telecommunications field represent an important factor that influences the situation of Fairfax Media. It is important that the company invests in technological advancements that can be used in the media industry (Fairfax Media, 2011). The technological developments that address the Internet and mobile phones allow users to read news on their computers or on their mobile phones (Fairfax Media, 2007). This leads to a reduced number of customers that purchase newspapers. The customers that prefer to purchase newspapers are represented by older categories that do not like technology, and that prefer to read their news in regular ways. The customers that focus on reading news through computers and mobile phones are represented by younger categories of customers. Therefore, it is important in investing in business development in the digital media segment (Inside Business, 2010). Fairfax Media should focus on the needs and preferences of professionals and of younger categories of customers. This is intended to help increase the customer satisfaction level of these customers, which leads to improved customer loyalty.

The problems that are determined by internal factors at Fairfax Media are represented by the reduced interest in corporate social responsibility, reducing profits, and strategies that are not in accordance with market needs. It has been observed that customers seem to purchase from companies that associate themselves with corporate social responsibility activities. This is because the importance of problems of communities where these companies develop their activity, and the importance of environmental issues determine the help of companies (Financial Review, 2012). In order to improve their image, numerous companies invest in corporate social responsibility activities. They have… READ MORE

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