STRATEGIC MANAGEMENT

THE FINANCIAL DAILY

EBRAIZ ALI JAFFERY FAHAD MEHMOOD JEHANGIR KHAN MUNESH KUMAR USMAN RAJWANI

Introduction

Overview of the industry Brief History of The Financial Daily Mission of the company Competitors
Direct

Competitors Indirect Competitors

Environmental Analysis and Industry Attractiveness (PEST Analysis)

Political less significant impact on the industry compared to the affect on readership Economic overall recession in the country has hurt the industry Social customers reading behavior has led to a decline in newspaper readers Technological use of internet has affected the industry negatively

Porters Five Forces Model

Threat of new entrants Low due to high start up costs and strong brand identities Bargaining power of buyers High because of less significant costs of switching Threat of Substitutes Low since customers in this industry are less sensitive to prices Bargaining power of suppliers Low because suppliers are providing standardized inputs Rivalry among existing competitors Low since the products they offer are diversified

External Factor Evaluation (EFE)

Total weighted score of 3.24 The company would benefit by capturing the market share of Business Recorder Company must try and tackle the problem of customers moving towards electronic media Proposed Strategy

Competitive Profile Matrix (CPM)

Financial position is less than Business Recorder and Financial Post Competitors have been existing in market for a longer period of time Proposed Strategy
Financial

Daily must work in line with its customers to grab a greater market share

Internal Analysis Value Chain

Has a strong HR department and keeping a routine check on its human resource Sophisticated monitor cells to keep a check on its employees Uses fine quality inputs Ensures timely distribution of newspapers Huge R&D department deals with the marketing aspects as well

Core Competencies

Known for their good quality newspapers as compared to its competitors Strong research centre helps the company provide authentic information to its customers Recording financial data of Pakistan corporate sector

Internal Factor Evaluation (IFE)

Total weighted score is 2.60 Having a strong research centre strengthens the position of the company Proposed Strategy
Encourage

employees to stay with the company Provide incentives for their loyalty

Generic Strategy

The Financial Daily focuses on provding a differentiated product. Differentiated themselves through a minimal change in price and assuring a good quality newspaper Proposed Strategy
Go

for broad differentiation strategy Cater new markets or new cities in Pakistan

SWOT Analysis

Strengths

Opportunities
Capturing the market of Business Recorder New publication agency Circulation of newspapers to Islamabad and Faisalabad

Strong research centre Loyal researchers Recording financial data of Pakistan Corporate sector Stock based information

Weaknesses
Reporting networks not strong Not able to retain employees Weak market coverage

Threats
Consumer migration to electronic media Decline in reading habits Economic conoditions

TOWS
Strengths 1. 2. 3. 4. Opportunities 1. Capturing the market of Business Recorder Strong research centre Loyal Researchers Financial data of Pakistan Corporate Sector Stock based Information Weaknesses 1. 2. 3. 4. Reporting networks not strong Not able to retain employees Weak market coverage Brand image not strong as compared to competitors

S-O Strategies 1. Using your specialized stock based information to capture market share of Business Recorder ( S4, O1 ) Using information of the research centre to enter markets of Islamabad and Faislabad ( S1, O4 ) Opening new publication agency using the Financial data of Pakistan Corporate Sector ( S3, O3 )

W-O Strategies 1. Establish new publication agency to strengthen reporting networks ( W1, O3)

2.

More market penetration for researchers

2.

2.

Improve market coverage by circulating in Islamabad and Faisalabad ( W3, O4 )

3.

New publication agency

3.

3.

Capturing the market share of Business Recorder to strengthen brand image ( W4, O1 )

4. Threats 1.

Circulation of publications in Islamabad and Faisalabad S-T Strategies Consumer migration to electronic media 1. Circulate stock based information to business organization on regular basis ( S4, W1 ) W-T Strategies 1. Increase market coverage by focusing on epaper ( W3, T1 )

2. 3.

Decline in reading habbits of customers Economic conditions

THE SPACE MATRIX

INTERNAL STRATEGIC POSITION Financial Strength (FS) Return on Investment +3 EXTERNAL STRATEGIC POSITION Environmental Stability (ES) Ease of Exit from the market Rate of inflation Prices of Competitors Products Competative pressure ES Average -4 -4 -3 -2 -3.25

Liquidity
Working Capital Cash flows FS Average

+4
+3 +4 +3.5

Competitive Advantage (CA)

Industry Strength (IS) International Growth Potential +3

Market Share
Product Quality Financial Position Customer Loyalty CA Average

-2
-1 -2 -1 -1.5

Profit Potential
Capital Intensity Ease of Entry into New Markets IS Average

+3
+5 +3 +3.5

Y axis Financial strength 0.25 Environmental stability X axis

+3.5 -3.25

Y axis: 3.5+ (-3.25) =

Conservative

FS +2 +1

Aggressive

CA

IS

-2

-1

+1 -1

-2
-3 Defensive ES Competitive

SPACE MATRIX ANALYSIS

As from the above matrix we analyze that

Financial daily is financially strong (3.5) Also having good competitive advantage in growing industry (-1.5) So financial daily is in excellent position to use its internal strengths

STRATEGIES

Market penetration and market development

Product development Diversification

IE MATRIX
The IFE Total Weighted Score

Strong 3.0 to 4.0 High 3.0 to 3.99 I

Average 2.0 to 2.99 II

Weak 1.0 to 1.99 III

The Financial Daily

Medium
The EFE Total Weighted Score

IV

VI

2.0 to 2.99

Low 1.0 to 1.99

VII

VIII

IX

IE ANALYSIS AND STRATEGIES

According to IE Matrix financial daily has to grow and build

So for that strategies that would be adopted are Market penetration & Product development

THE GRAND STRATEGY MATRIX

RAPID MARKET GROWTH Quadrant II Quadrant I

Target WEAK COMPETITIVE POSITION STRONG COMPETITIVE POSITION

The Financial Daily

Quadrant III

Quadrant IV

SLOW MARKET GROWTH

ANALYSIS OF GRAND STRATEGY

As we discussed earlier that Financial daily is in a position where they have to;
Concentric diversification Horizontal diversification Joint venture

So diversification would be a good strategy

THE QSPM MATRIX

Strategic Alternatives

Critical Success Factors Strengths Strong research centre Loyal Researchers Financial data of Pakistan Corporate Sector Stock based Information

Weight

Publishing Mutual Funds magazine for Investors AS TAS 0.60 0.10 0.60 0.30

Introducing television news channel AS 4.00 2.00 4.00 3.00 TAS 0.60 0.10 0.80 0.30

0.15 0.05 0.20 0.10

4.00 2.00 3.00 3.00

Weaknesses
Reporting networks not strong Not able to retain employees Weak market coverge 0.15 0.15 0.10 3.00 4.00 1.00 0.45 0.60 0.10 3.00 2.00 2.00 0.45 0.30 0.20

Brand image not strong as compared to competitors

0.10

3.00

0.30

3.00

0.30

SUBTOTAL

1.00

3.05

3.05

Critical Success Factors Opportunities Capturing the market of Business Recorder More market penetration for researchers New publication agency

Weight

Publishing Mutual Funds magazine for Investors AS TAS 0.40 0.45 0.09

Introducing television news channel AS 1.00 3.00 2.00 TAS 0.20 0.45 0.06

0.20 0.15 0.03

2.00 3.00 3.00

Circulation of publications in Islamabad and Faisalabad

Threats Consumer migration to electronic media Decline in reading habbits of customers Economic conditions SUBTOTAL

0.10

1.00

0.10

2.00

0.20

0.40 0.10 0.02 1.00

2.00 3.00 1.00

0.80 0.30 0.02 2.16

4.00 4.00 2.00

1.60 0.40 0.04 2.95

SUM TOTAL ATTRACTIVENESS SCORE

5.21

6.00

QSPM ANALYSIS

From the above QSPM Matrix We drawn conclusion that strategy 2 would be a good combination As it totals to 6 which is higher than any other Also it is a practical approach that world is moving towards paperless environment Also a decline in the reading hobbits of the youth

And the popularity of the TV and INTERNET