the impacts of the shifts in news environment on radikal's business

Outline Introduction Radikal’s Business Overview Vision & Mission Competition External Analysis SWOT Analysis Porter’s Five Forces Model for Radikal Value Chain Analysis Strategy Overview Recommendations / Conclusion

Radikal’s Transition to Digital Journalism

www.radikal.com.tr No. 123456

Prepared by Atilla Eren YILDIRIM, Çağrı Bilici and Murat Doğan

Introduction• Radikal began in 1996 with support from the powerful Dogan

Media Group

• Mehmet Y. Yılmaz was the Founder and the first Publishing Director

• The purpose of this paper is to evaluate the impacts of the shifts in demographics, innovations, technological developments and audience expectations on Radikal’s business

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Radikal’s Business Overview• In 1996, Radikal was founded

by Dogan Media Group

• In 2004, Radikal was awarded the Turk Democracy Associations "Democracy Media Award" (jointly with Zaman)


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Radikal’s Business Overview• The Dogan Media Group's

economics daily Referans merged to Radikal in 2010, with Referans editor-in-chief Eyüp Can becoming editor-in-chief of the combined paper, replacing İsmet Berkan

• Later in 2010, the paper moved to a tabloid format and introduced new columnists Dilek Kurban of TESEV, Cüneyt Özdemir, and Sırrı Süreyya Önder


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Radikal’s Mission & Vision

• Radikal is a newspaper which is innovative with a deep and wide editorial point of view that urban readers look for. Its audiences are young, intellectual, well educated, middle and high income groups who prefer to read accurate news and unbiased comments

• The main purpose of Radikal, are to reach more audiences, increase its relative market share, to enable its audiences to reach multilateral expert comments


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Competition


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• Radikal is the 43rd biggest and most widely visited website in Turkey (by over one million visitors per day) for news and information. Additionally, 1,152,249 and 977,105 followers are on Facebook and Twitter, respectively.


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External AnalysisPolitical• Unexpected

Resignation• Terrorist Acts• Elections

Economic• Technological

progress which might lead to companies’ bankruptcy and increase in unemployment rate

• Financial crisis (high printing costs, declining advertisement revenues, loss of classified advertising, falling margins and drops in circulation)

• No revenue from the sale of newspapers (in printable version) after transition to digital journalism

Socio-cultural• The effects of the

Internet on the audiences’ reading behaviour and objection towards reading newspaper in published versions

• Demographical change (increase in news readers between the age of 18 to 24)

Technological• Internet substituting

the prints• Increase in the

competitiviness with easy entry barriers requiring low capital cost and resources

• Enabling readers to access all news free

• Demographical change (increase in news readers between the age of 18 to 24)


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SWOT AnalysisStrengths• Leading company known to be, since 1996• 43rd biggest website in Turkey• Most widely visited website for news and

information in Turkey• Transition to the tabloid format in 2010• Adaptation of the shifts in the news environment• Appealing design of the whole website filled with

colorful photographs, graphs and charts

Weaknesses• No charge made for online news services provided

to the audiences and/or readers• Deficiencies in the management of Radikal

Opportunities• Constant innovation in providing more valuable

news to the diversified readers• Diffusion of digital journalism, and• The opportunity to increase digital advertisement

Threats• Increasing competition from other online news

providers both local and global, and• Negative reviews and criticism by users and/or

audiences as well as competitors


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Threat of new entrants – Extremely High• The emergence and diffusion of radical innovation and disruptive technologies have increased competitiveness

with easy entry barriers requiring low capital cost and resources

Bargaining power customers – High• The audiences have the choice to read newspapers either online for free or at cost on paper. Large advertisers

(another type of customer) have a greater power to bargain

Threat of substitutes – Extremely High• Most markets have multiple news sources where people can derive news from TV stations or national

publications. However, individuals are not only limited to one source. Rather, they have more than one option such as business journals, magazines, competing newspapers

Bargaining power of suppliers – Fairly low• The inability to charge for online content resulting to low supplier bargaining power

Intensity of Rivalry – High• Radikal’s local competitors including Habertürk, Hürriyet, Milliyet, Posta, Sabah, … , Zaman and thousands of

online competitors are large-size Companies with high circulations and reach competing for the same customer

Porter’s Five Forces Diagram


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Value Chain

Traditional Journalism vs. Digital JournalismValue Chain


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Value ChainTraditional Journalism

Journalist & Photographers

Journalist & Photographers

Content creation, Editing, Publishing

Advertiser

Printing

WHOLESALER

RETAILER

READER

Content Creation Manufacturing Distribution


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Value ChainDigital Journalism

Content Creation

Management of creative Content

Aggregation, Publishing, Distribution- Hosting & Platform Provision(portals)- Online retail

Customer

Digital content support services Access technologyg


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Strategy Overview

• Quality of the Content • Mobile Access


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RecommendationRadikal should …

• follow shifts in the news environment (i.e. digital media trends) utilisation of star bloggers and social media top rating stars

• be flexible for social network • enhanced and implement the mobile application strategies


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Thank You !