USA Today Summary of Marketing Case Study

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3. Democratization of the Internet and blogging is making the entire area of news capture and dissemination increasingly difficult to manage and deal with. For USA Today the challenging aspects of this will be recruiting enough bloggers of high enough quality to further differentiate their content delivery strategy.

4. Shrinking advertising revenues throughout the industry will force consolidation of national papers, and will also drive down overall market capitalization levels of all companies. USA Today is seeing this in their advertising revenues in the case study.

Opportunities

1. The potential exists to re-define the business model of USA Today and make it more focused on selective news consumption, further differentiating the company from competitors. USA Today needs to think about customized news to a level not done before, delivered in real time to subscribers.

2. Redefining the business model to place greater emphasis on advertising and selective market programs for each demographic and psychographic segment the company can reach with its publications.

3. Greater focus on share of customer market share by offering expanded news and information programs customizable to their needs.

4. Partner with globally-based newspapers and customize content to specific needs of customers and practice more micro-segmenting.

Threats

1. USA Today's core competency isn't technology, it is news aggregation. This will make the shift to technology platform all the more difficult.

2. Continued consolidation of the industry will force a shakeout and drive down market valuations -- which will make USA Today a potential takeover target.

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3. Operating costs will be very significant over the long-term as materials to produce the print version continue to escalate in price.

Problem Statement

USA Today faces the challenge of strategically re-inventing itself and growing its share of customer while attracting new subscribers from the Echo Boomers and Gen X segments.

Three Strategic Alternatives

1. Create a news aggregation and customization service focused on the individual needs of the Echo Boomers and Gen X markets. Make the selections more psychographically focused.

2. Play the role of industry consolidator and start buying up other companies, like Oracle is doing in the enterprise software industry. This could include buying Yahoo very cheap.

3. Create a spin-off to create entirely new technologies for information delivery including creating an alliance with Google for context-based computing in Google Glass, the new innovation that shows contextual search in real-time.

Strategic Recommendation

Pursue a very targeted Echo Boomer strategy aimed at the highest per capita incomes of news and sports junkies and license the Google Glass technology to create glasses that automatically create contextual search based on surrounding coordinates. This is a video of Google Glass: http://www.youtube.com/watch?v=9c6W4CCU9M4

Marketing Implementation

Pursue the strategy of being the most forward-thinking content providers globally by partnering with Google on Google Glass and target the most affluent members of the Echo Boomers and Gen X….....

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