New Business Model for Heine Median Case Solution
With the passage of time; many magazines and newspaper-shave become sluggish & have been accustomed to raking in profits returns, without much rivalry. Due to the onset of internet; newspapers and magazines are realizing that they could encounter a financial crises if they don’t keep up with their technological competitors. The consumer are inclined towards spending-more time in reading online media. Furthermore, the mobile internet has taken off everywhere, hence sparking a revolution in the customers’ behavior. (Everett*, 2011)
E-reader shipment and tablet have continued to be robust & customers prefer to read digital versions of their magazines and newspapers. The audience is increasingly fragmented, and in the wake of the digital revolution and various technological trends, such as:twitter (which provides short messages in real time), Facebook + social (costing people an average of two hour and twenty-four minutes each day), Google Me, new aggregators (Yahoo, daily beast, Digg, Huffington, Google news), mobile, i Revolution, HTML5, browser war & so forth(Newman, 2019).With respect to an increase in the launch of social media platforms; there seems to be a significant need for an improvement in the use of technology at Heise Medien.
The demographic shift in the newspaper and magazines industry stipulates that the young generation, adults and millennial are more likely to read news online. Since the majority of the readers are older who prefer to use traditional modes of reading news; they are still accustomed to read news on magazines and newspapers.
There are many economic factors that affect the growth of news industry, such as:recession and low employment opportunities available in the market, because it tends to reduce the customer’s purchasing power and negatively affects the print and news industry. Hence, the economic downturn could hinder the ability of customers to purchase newspapers and magazines.
In the wake of the advertising regulations; the rules and laws are imposed to advertise the product in a particular region. Furthermore, the journalism standards and ethics most likely describe the principles of good practices and ethics which journalists need to adopt in response to the particular challenges. The political trends include:requirement of license, protection of minors, advertising rules, limitations of exclusive rights, regulation of services and transmission for the distribution of programs and so forth. Thus, the player operating in the publishing industry as well as in online media industry are required to follow these trends for smooth business operations.(Schulz, 2008).
The sociocultural factors affecting the publishing-industry include a wider acceptance of the internet commerce, customer preferences, advertising preferences and comfort with technology. The increasing prevalence of internet and digital revolution demonstrate the need for digitization and investment in the online social media news. Furthermore, the shift from the traditional news media sources is being led by the millennial and younger generation and they use social media apps particularly, for example: Instagram for gathering news information. It is pertinent to note that the consumers of Instagram news are 11 percent of the total social media population and Twitter is statistically tied at 12 percent. Moreover, Facebook tends to lead with 36 percent of social media consumer who prefer to use social media for consuming news in time-efficient manner.(Vorhaus, 2020 )………………………..
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