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GP+ in a 5D Format: Strategic Ideas for
 a Business Model Advancement of a
        Regional Digital Edition

                          JCSD27 Corporate Entrepreneurship
                          and Strategic Renewal

                          Prepared by Group ONE:
                                      Yulia Kazakulova
                                      Kateryna Khozroshyna
                                      Mihai Leontescu
                                      Wei Li
                          Supervised by Leona Achtenhagen
                                      Khizran Zehra
Presentation Outline
1. Introduction
2. Theoretical Framework
3. Practical Suggestions:
  –   Product
  –   Customer
  –   Delivery
  –   Revenue & Price
4. Conclusions
Introduction
Purpose: increase sales of
  GP+ by taking it to the
  next level

                Challenge: weakened and
                  quantity-oriented
                  business model of the
                  GP+
                             Solution: utilization of
                               corporate
                               entreprenuership and
                               strategic renewal
Theoretical Framework
  Business Model in a 5D Format
      (Fetscherin and Knolmayer, 2004):


          Customer
Product GP+

• Substitute vs. Complement
  – Positioning within GP


• Product Differentiation
  – Intermedia: online features


• Collaboration vs. Competition
  – News-sharing
Customer GP+
                                  • Citizen journalism
                                     –   Readers-newsmakers
                                     –   Readers-journalists
                                     –   Readers-observers
                                     –   Best Citizen Journalist



• Interaction (feedback)
  - Comments
  - Articles evaluation, voting
Delivery GP+
• Multi-channel Delivery
   – Internet, mobile devices
      (phones, tabletes)
• Channels are complementary,
  but different in popularity
• Technical knowledge required
  for multi channel deliveries of
  GP news (Hedman, 2006)
                                    • Website Layout
                                      Improvements
                                    • Experiment: Subscription to
                                      GP+ for 24 hours
Revenue & Price GP+

                                     • Target different groups of potential subscribers

                                     • Charge different target groups differently



Why?
To charge for a certain type of articles more than
    others and customize the service and its cost
    according to these factors
How?
-   Free trial 10 day-period access to the GP+
    (registration needed)
-   Analyze readers´ online actions and
    preferences
Conclusions
Be a Corporate Entrepreneur!
•   Proactive
      - Position GP+ as a complementary product
•   Networking
      - Collaborate with competitors
•   Motivated
      - Encourage interactivity with customers
•   Creative/Innovative
      - Change Website Layout
•   Risk-Taking
      - Price Differentiation/Customization
Thank
You
for
Your
Attention!




  Team
  ONE.
Reference List
1. Bivings Group, (2008), ‘The Use of the Internet by America’s Largest Newspapers’, Retrieved on
    December 18 2008 from <http://www.bivingsreport.com/2008/the-use-of-the-internet-by-americas-
    largest-newspapers-2008-edition/>
2. Chyi I. H. and Sylvie G., (1998) 'Competing With Whom? Where? And How? A Structural Analysis of
    the Electronic Newspaper Market', Journal of Media Economics, 11: 2, 1-18
3. Evans D., (2009), ‘The Online Advertising Industry: Economics, Evolution, and Privacy’, The Journal of
    Economic Perspectives, April 2009
4. Fetscherin M. and Knolmayer G., (2004) 'Business Models for Content Delivery: An Empirical Analysis
    of the Newspaper and Magazine Industry', International Journal on Media Management, 6: 1, 4 — 11
5. Gardner J., (2009), ‘Newspaper Industry Facing Huge Challenges’, Post Independent, Retrieved on
    May 16, 2011 from <http://www.postindependent.com/article/20090105/VALLEYNEWS/901059997>
6. Hamilton О., (2004), ’All the news that's fit to sell: How the market transforms information into news’,
    Princeton University Press
7. Hedman U., (2006), ’Har ni nеt webbigt? En fallstudie av Gцteborgs-Postens flerkanalpublicering:
    Redaktionell organisering och arbetsrutiner, nyhetsvordering samt medielogik’, Goteborgs
    Universitet, Institutionen fur Journalistik och Masskommunikation.
8. Hollander A. B., Krugman M. D., Reichert T., Avant J. A., (2011), ‘The E-Reader as Replacement for the
    Print Newspaper’, Publishin Research Quarterly, Vol. 27/2011
9. Jenkins H., (2004), ‘Convergence? I diverge’, Technology Review, June: 93
10. Kaye J., Quinn S. (2010), ‘Funding Journalism in the Digital Age: Business Models, Strategies, Issues’,
    New York: Princeton University Press.
11. Klumpp D., (2009), ‘Challenges for the Media Industry’, Alcatel-Lucent Foundation / HBI 2009,
    Creative Industries, retrieved on May 16, 2011 from <http://snurb.info/node/1071>
12. Lasica J. D., (2003) ‘Are Digital Newspaper Editions More Than Smoke and Mirrors?’, USC Annenberg
    Online Journalism Review, Retrieved on May 17 2011 from
    <http://www.ojr.org/ojr/technology/1054780462.php>
Reference List (continued)
13. McKittrick D., (2011), ‘Small Town Prepares for the Biggest Day in Its History’, The Independent,
    Retrieved on May 23 2011 from <http://www.independent.co.uk/news/world/europe/small-town-
    prepares-for-the-biggest-day-in-its-history-2287800.html>
14. Nemeth, N. and Sanders, C. (1999), ‘Ombudsmen's Interactions with Public through Columns’,
    Newspaper Research Journal, Vol. 20(1): 29-42
15. Rathman A. Tim (2002), ‘Supplements or Substitution? Relationship Between Reading a Local Print
    Newspaper and the Use of its Online Version’, Communications. Volume 27, Issue 4, Pages 485–498
16. Samuelson R., (2011), ‘Stuck in a Post-Crisis Gloom’, The Washington Post, Retrieved on May 23 2011
    from <http://www.washingtonpost.com/opinions/stuck-in-a-post-crisis-
    gloom/2011/05/22/AFdx5L9G_story.html>
17. Singer B. J., (1997) ‘Changes and Consistencies: Newspaper Journalists Contemplate Online Future’,
    Newspaper Research Journal, Vol. 18, 1997
18. Statistics Sweden (2011), Statitiskacentralbyrеn, Retrieved on May 20 2011 from
    <http://www.scb.se/Pages/GsaSearch____287280.aspx?QueryTerm=tillg%C3%A5ng%20till%20intern
    et%202011&PageIndex=1&hl=sv>
19. Stockholm Illustrates Growing Wealth Divide (2011), The Local, Retrieved on May 09 2011 from
    http://www.thelocal.se/33660/20110509/
20. Quinn, S. (2004), ‘An intersection of ideals: Journalism, profits, technology and convergence’, The
    international Journal of Research into New Media Technologies, 10(4), 109-123.
21. Varian H.R, (1995), ‘Pricing Information Goods’, UC Berkeley School of Information, Retrieved on 16
    May 2011 from <http://people.ischool.berkeley.edu/~hal/Papers/price-info-goods.pdf>
22. Weezel V. A., (2009), ‘Entrepreneurial Strategy-Making Model and Performance: A study of the
    Newspaper Industry’, JIBS Dissertation Series
23. Waal De E., Schönbach K. and Lauf E, (2005) ‘Online Newspapers: A Substitute or Complement for
    Print Newspapers and Other Information Channels?’, Communications, Volume 30, Issue 1, Pages 55–
    72

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Goteborg posten case 2011

  • 1. GP+ in a 5D Format: Strategic Ideas for a Business Model Advancement of a Regional Digital Edition JCSD27 Corporate Entrepreneurship and Strategic Renewal Prepared by Group ONE: Yulia Kazakulova Kateryna Khozroshyna Mihai Leontescu Wei Li Supervised by Leona Achtenhagen Khizran Zehra
  • 2. Presentation Outline 1. Introduction 2. Theoretical Framework 3. Practical Suggestions: – Product – Customer – Delivery – Revenue & Price 4. Conclusions
  • 3. Introduction Purpose: increase sales of GP+ by taking it to the next level Challenge: weakened and quantity-oriented business model of the GP+ Solution: utilization of corporate entreprenuership and strategic renewal
  • 4. Theoretical Framework Business Model in a 5D Format (Fetscherin and Knolmayer, 2004): Customer
  • 5. Product GP+ • Substitute vs. Complement – Positioning within GP • Product Differentiation – Intermedia: online features • Collaboration vs. Competition – News-sharing
  • 6. Customer GP+ • Citizen journalism – Readers-newsmakers – Readers-journalists – Readers-observers – Best Citizen Journalist • Interaction (feedback) - Comments - Articles evaluation, voting
  • 7. Delivery GP+ • Multi-channel Delivery – Internet, mobile devices (phones, tabletes) • Channels are complementary, but different in popularity • Technical knowledge required for multi channel deliveries of GP news (Hedman, 2006) • Website Layout Improvements • Experiment: Subscription to GP+ for 24 hours
  • 8. Revenue & Price GP+ • Target different groups of potential subscribers • Charge different target groups differently Why? To charge for a certain type of articles more than others and customize the service and its cost according to these factors How? - Free trial 10 day-period access to the GP+ (registration needed) - Analyze readers´ online actions and preferences
  • 9. Conclusions Be a Corporate Entrepreneur! • Proactive - Position GP+ as a complementary product • Networking - Collaborate with competitors • Motivated - Encourage interactivity with customers • Creative/Innovative - Change Website Layout • Risk-Taking - Price Differentiation/Customization
  • 11. Reference List 1. Bivings Group, (2008), ‘The Use of the Internet by America’s Largest Newspapers’, Retrieved on December 18 2008 from <http://www.bivingsreport.com/2008/the-use-of-the-internet-by-americas- largest-newspapers-2008-edition/> 2. Chyi I. H. and Sylvie G., (1998) 'Competing With Whom? Where? And How? A Structural Analysis of the Electronic Newspaper Market', Journal of Media Economics, 11: 2, 1-18 3. Evans D., (2009), ‘The Online Advertising Industry: Economics, Evolution, and Privacy’, The Journal of Economic Perspectives, April 2009 4. Fetscherin M. and Knolmayer G., (2004) 'Business Models for Content Delivery: An Empirical Analysis of the Newspaper and Magazine Industry', International Journal on Media Management, 6: 1, 4 — 11 5. Gardner J., (2009), ‘Newspaper Industry Facing Huge Challenges’, Post Independent, Retrieved on May 16, 2011 from <http://www.postindependent.com/article/20090105/VALLEYNEWS/901059997> 6. Hamilton О., (2004), ’All the news that's fit to sell: How the market transforms information into news’, Princeton University Press 7. Hedman U., (2006), ’Har ni nеt webbigt? En fallstudie av Gцteborgs-Postens flerkanalpublicering: Redaktionell organisering och arbetsrutiner, nyhetsvordering samt medielogik’, Goteborgs Universitet, Institutionen fur Journalistik och Masskommunikation. 8. Hollander A. B., Krugman M. D., Reichert T., Avant J. A., (2011), ‘The E-Reader as Replacement for the Print Newspaper’, Publishin Research Quarterly, Vol. 27/2011 9. Jenkins H., (2004), ‘Convergence? I diverge’, Technology Review, June: 93 10. Kaye J., Quinn S. (2010), ‘Funding Journalism in the Digital Age: Business Models, Strategies, Issues’, New York: Princeton University Press. 11. Klumpp D., (2009), ‘Challenges for the Media Industry’, Alcatel-Lucent Foundation / HBI 2009, Creative Industries, retrieved on May 16, 2011 from <http://snurb.info/node/1071> 12. Lasica J. D., (2003) ‘Are Digital Newspaper Editions More Than Smoke and Mirrors?’, USC Annenberg Online Journalism Review, Retrieved on May 17 2011 from <http://www.ojr.org/ojr/technology/1054780462.php>
  • 12. Reference List (continued) 13. McKittrick D., (2011), ‘Small Town Prepares for the Biggest Day in Its History’, The Independent, Retrieved on May 23 2011 from <http://www.independent.co.uk/news/world/europe/small-town- prepares-for-the-biggest-day-in-its-history-2287800.html> 14. Nemeth, N. and Sanders, C. (1999), ‘Ombudsmen's Interactions with Public through Columns’, Newspaper Research Journal, Vol. 20(1): 29-42 15. Rathman A. Tim (2002), ‘Supplements or Substitution? Relationship Between Reading a Local Print Newspaper and the Use of its Online Version’, Communications. Volume 27, Issue 4, Pages 485–498 16. Samuelson R., (2011), ‘Stuck in a Post-Crisis Gloom’, The Washington Post, Retrieved on May 23 2011 from <http://www.washingtonpost.com/opinions/stuck-in-a-post-crisis- gloom/2011/05/22/AFdx5L9G_story.html> 17. Singer B. J., (1997) ‘Changes and Consistencies: Newspaper Journalists Contemplate Online Future’, Newspaper Research Journal, Vol. 18, 1997 18. Statistics Sweden (2011), Statitiskacentralbyrеn, Retrieved on May 20 2011 from <http://www.scb.se/Pages/GsaSearch____287280.aspx?QueryTerm=tillg%C3%A5ng%20till%20intern et%202011&PageIndex=1&hl=sv> 19. Stockholm Illustrates Growing Wealth Divide (2011), The Local, Retrieved on May 09 2011 from http://www.thelocal.se/33660/20110509/ 20. Quinn, S. (2004), ‘An intersection of ideals: Journalism, profits, technology and convergence’, The international Journal of Research into New Media Technologies, 10(4), 109-123. 21. Varian H.R, (1995), ‘Pricing Information Goods’, UC Berkeley School of Information, Retrieved on 16 May 2011 from <http://people.ischool.berkeley.edu/~hal/Papers/price-info-goods.pdf> 22. Weezel V. A., (2009), ‘Entrepreneurial Strategy-Making Model and Performance: A study of the Newspaper Industry’, JIBS Dissertation Series 23. Waal De E., Schönbach K. and Lauf E, (2005) ‘Online Newspapers: A Substitute or Complement for Print Newspapers and Other Information Channels?’, Communications, Volume 30, Issue 1, Pages 55– 72