New York Times Digital Case Study

A recent Pew Research Center survey noted that more than 70 percent of Americans were worried about automation’s impact on jobs, while just 21 percent of respondents to a Quartz survey said they trust Facebook with their personal information. Nearly half of millennials worry about the negative effects of social media on their mental and physical health, according to the American Psychiatric Association.

So what now?

As much as we might fantasize about it, we probably won’t delete our social media accounts and toss our phones in the nearest body of water. What we can do is to restore some sense of balance over our relationship with digital technology, and the best way to do that is with analog: the ying to digital’s yang.

Thankfully, the analog world is still here, and not only is it surviving but, in many cases, it is thriving. Sales of old-fashioned print books are up for the third year in a row, according to the Association of American Publishers, while ebook sales have been declining. Independent bookstores have been steadily expanding for several years. Vinyl records have witnessed a decade-long boom in popularity (more than 200,000 newly pressed records are sold each week in the United States), while sales of instant-film cameras, paper notebooks, board games and Broadway tickets are all growing again.

This surprising reversal of fortune for these apparently “obsolete” analog technologies is too often written off as nostalgia for a predigital time. But younger consumers who never owned a turntable and have few memories of life before the internet drive most of the current interest in analog, and often include those who work in Silicon Valley’s most powerful companies.

Analog, although more cumbersome and costly than its digital equivalents, provides a richness of experience that is unparalleled with anything delivered through a screen. People are buying books because a book engages nearly all of their senses, from the smell of the paper and glue to the sight of the cover design and weight of the pages read, the sound of those sheets turning, and even the subtle taste of the ink on your fingertips. A book can be bought and sold, given and received, and displayed on a shelf for anyone to see. It can start conversations and cultivate romances.

The limits of analog, which were once seen as a disadvantage, are increasingly one of the benefits people are turning to as a counterweight to the easy manipulation of digital. Though a page of paper is limited by its physical size and the permanence of the ink that marks it, there is a powerful efficiency in that simplicity. The person holding the pen above that notebook page is free to write, doodle or scribble her idea however she wishes between those borders, without the restrictions or distractions imposed by software.

In a world of endless email chains, group chats, pop-up messages or endlessly tweaked documents and images, the walled garden of analog saves both time and inspires creativity. Web designers at Google have been required to use pen and paper as a first step when brainstorming new projects for the past several years, because it leads to better ideas than those begun on a screen.

In contrast with the virtual “communities” we have built online, analog actually contributes to the real places where we live. I have become friendly with Ian Cheung, the appropriately opinionated owner of June Records, up the street from my home in Toronto. I benefit not only from the tax revenues that June Records contributes as a local business (paving the roads, paying my daughter’s teachers) but also from living nearby. Like the hardware store, Italian grocer and butcher on the same block, the brick and mortar presence of June adds to my neighborhood’s sense of place (i.e., a place with a killer selection of Cannonball Adderley and local indie albums) and gives me a feeling of belonging. I also have no doubts that, unlike Twitter, Ian would immediately kick out any Nazi or raving misogynist who started ranting inside his store.

Analog excels particularly well at encouraging human interaction, which is crucial to our physical and mental well-being. The dynamic of a teacher working in a classroom full of students has not only proven resilient, but has outperformed digital learning experiments time and again. Digital may be extremely efficient in transferring pure information, but learning happens best when we build upon the relationships between students, teachers and their peers.

We do not face a simple choice of digital or analog. That is the false logic of the binary code that computers are programmed with, which ignores the complexity of life in the real world. Instead, we are faced with a decision of how to strike the right balance between the two. If we keep that in mind, we are taking the first step toward a healthy relationship with all technology, and, most important, one another.

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Transcript of New York Times Case Analysis

(cc) photo by Metro Centric on Flickr
(cc) photo by Franco Folini on Flickr
(cc) photo by Metro Centric on Flickr
Krista Pagan
Jaclyn Singer
Blessing Ayeni
Company Overview
Value Chain Analysis
Corporate Strategy
New York Times:
Seeking Salvation within a Declining Industry
Case Analysis
High speed rail is a type of passenger rail system significantly faster than traditional rail systems.
•They are used all over Europe, and places like China
•They are being developed so that some trains reach speeds of over 300km/h
•Very safe because of a predictable course, and it lowers the possibility of collisions
•Less weather related delays than airplanes
•Produce less noise
•Shortens trip time
•Reduce dependence on oil
•High speed rail is environmentally friendly and will cut down carbon emissions
What alternative forms of transportation would you recommend? (think about social, environmental, economical issues)
High Speed Rail System

Teleconferencing is a live exchange of information between several people

•It would be a positive alternative for flying for business people

•With technology being developed it is getting easier to communicate and share data

•Meetings could be held between two parties without having to leave the city
Primary activities
“The New York Times Company, a leading global, multimedia news and information company with 2012 revenues of $2.0 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, ,, and related properties. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news and information.”
Support activities
“The New York Times Company selectively invests in digital media start ups to support our innovation efforts.”
Current investments include:
Continue to use social media and charge subscribers for in-depth internet access.
Continue to make acquisitions of internet companies and learn from them.
Expand customer base to other growing countries.
Create or shift focus to a younger audience.
Look for ways to merge with media giants such as Apple, YouTube, Google, or BBC so as to gain non-substitutable capabilities.
The Industry Organization Model
The Resource Based Model
Business Level Strategy
Core Capabilities and Competences
NY Times main competitors are: 
The New York Times company is also making acquisitions of small technology companies, learning from them and selling them.
Companies sold by The New York Times include:
Resource Based View
Porters Five
Potential Entrants
Rivalry Among Competitors
Bargaining Power of Buyers
Bargaining Power Of Suppliers
The New York Times Media Group
The New England Media Group
International Herald Tribune
Worcester Telegram & Gazette

906,100 newspapers on weekdays and 1,356,800 on weekends
Top Three Circulated Newspapers in the USA
1.) The Wall Street Journal
2.) USA Today
3.)The New York Times
Founded in 1851
Sold for a penny, now sells for $2.50 daily and $5 dollars for the Sunday Specials founded in 1996
NYT first mobile application in 2008
@NYTimes on Twitter has 8,235,704 followers
NYT on Facebook has 2,934,589 fans
New York Times PayWall subscription service started in 2011
Company Overview
National Circulation
Free news information available online
Digital newspapers and magazines
Decrease of spending on advertisement
Industry has been in decline for the past five years
Industry restructure
Industry is seeking new ways to generate revenues
Total revenues of the newspaper industry for 2012 is 38.6 billion
22.5 billion in advertising revenue
Digital ads take up 17% of total advertising revues
10.5 billion in circulation revenue
Mobile Ad revenues doubled since 2011
The Newspaper Industry Almost Out Of Ink
The width of the paper was narrowed by six inches
To a new style of a 48 inch web styled width
5% reduction in news coverage
Changes to Survive
Online Media-
Do not need a lot of capital to enter the market
Social Media Websites & Blogs
Printed Media-
Various Established competitors in the market.
Thin profit margins.
Dying Business.
No Licensing Requirements

Social Media Websites
Paper/ Ink Suppliers -
Limited Items that are still printed due to changes in Technology.
Limited Number of Suppliers (plant closures, mergers, bankruptcies)
Low Switching costs.
NYT is large company with market power
Equity in a Paper Mill
Subscribers -
They have several ways to get their news/ entertainment.
Switching costs are low.
They control advertisers.

Established newspaper companies in the print & online market.
Various other competitors in the online market.
Product differentiation and innovation is key.
Dominant Business

Donohue Malbaie
Madison Paper Industries
Other Investments
Recession/ Economic Uncertainty
High Unemployment
Print Sales are Down
Audience does not want to pay for online subscription
Companies cut advertising budgets
Preferences shifted to digital media
Can obtain free news information on-line
Audience is now browsers instead of readers
Audience's perception of news has changed
Want to "Be Green"
Move to digital content
Social media, blogs & other sources
E-Readers & Apps
Joint Ventures
Journalists -
Key people to differentiate their products
Advertisers -
They have several outlets to advertise.
"Enhance Society by creating & distributing high quality news, information & entertainment."
Newspaper industry does not have licensing requirements
Libel Laws
Press Monitors
Core Capabilities
Customer Loyalty
Differentiation Strategy
Business Level Strategy
Market Segmentation
Broad - Various sections
Ages of 35+
Product availability across different platforms
Share knowledge
Increase Market Power &
Bargaining Power with Suppliers
Bargaining Power with Supplier (Vertical Movement on Supply Chain)
What Needs?
Deliver Information & News
Deliver across various platforms
High Quality Journalism
Journalism Integrity

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