Download SCHIBSTED CASE ANALYSIS and more Study Guides, Projects, Research Strategic Management in PDF only on Docsity! Schibsted Group-19 | Section-A Situational Analysis ● Schibsted is media group which was founded in 1839 as a newspaper company in Oslo, Norway. It is present in 20 countries. ● Currently, its management is facing some serious challenges after enjoying continued success for past few years. ● Google is threatening its profitability and core value proposition with its plan of a news aggregator in Norway. ● The company is also confronted with challenges surrounding the changing nature of its audience, the startups’ threat and its internal organisational culture. ● They are also faced with a dillemma whether or not to launch ‘free dailies’ in their core and established newspaper markets. The Transformation Years ● In 1995, they acknowledged the threat posed by the Internet to their core newspaper business and decided to act on it. ● They decided to take aggressive positions by utilising their strong finances. ● They decided to transform from a newspaper company to an electronic media company. ● They also planned to expand beyond Norway to other Scandavian nations. ● Schibsted reorganised itself into three business units - Print Media, TV/Film and Multimedia. They planned to keep them separate. ● They invested in certain new IT related projects by partnering with various such companies. ● They introduced free dailies where they did not have traditional media majorly. Going Digital ● During the ‘dot.com bubble’ burst, it suffered heavily, with its share prices going down by half. ● But, instead of scaling back like other companies, it continied to make investments in the online media. They were convinced the age of digital media would be there. ● They kept their core traditional business and the new online media business separate. They did not want to play safe anymore. ● They made huge success in the online classified ads segment. ● They also incorporated UGC (user generated content), which played a very important part of the success of their online media. ● They also have a serach engine of theirs now. Google Collaboration Pros: ● Readers are moving towards online news aggregators such as Yahoo, Google etc. for looking at varieties of news headlines. ● It will increase the customer’s base of the company as non-readers of Schibsted will also visit their site if they found the news interesting. Cons: ● It will impact the advertising revenue of the company as there will be less visit on the website. ● There is no ordering in online news feed. ● They will get very less amount from news aggregator for their offering which can not justify the effort made by the company in developing the news content.
