Hong Kong Economic Times Case
HONG KONG ECONOMIC TIMES
LUCAS LOPEZ - FENWAY
Hult International Business School
1. Which factors have affected the profitability of the newspaper industry in general and in Hong Kong in particular over the last twenty years?
The newspaper industry has been facing a different situation in Hong Kong compared to other countries. First, is important to know that the financial perspective of newspapers in the global scenario is not the best one, as they have been decreasing their “wallet share” in the advertising expenditure from 36% to 25% in 2015 and sales are almost flat with a total revenue growth of only 1% (See exhibit 1). On the other hand, Hong Kong has been experimenting a healthy advertising revenue
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The Company could have a privileged position as a one stop shop for their customers, but the ETVision by itself does not follow the Blue Ocean Strategy | YES, but only in some of their businesses | Make the competition irrelevant | HKET made the competition irrelevant when they launched Electronic Property Information Services. While there was information of the property market, it was all spread out; no one had this user-friendly, comprehensive information. The Company took advantage of their information management skills and created something that competitors didn’t have. On the other hand, units such as the business college has many direct competitors, for example universities, consulting companies are direct competitors. | YES, but only in some of their businesses | Create and capture new demand | HKET created and captured new demand with products such as E-zone and U magazine. This kind of publications were focused to satisfy unmet needs like leisure and lifestyle content, and you can infer that for instance the U Magazine will be a new product for the customer, something “extra” that will not directly "steal" market share from a competitor. | YES, but only in some of their businesses | Break the value/cost trade-off | They didn´t break the value/cost trade off, in fact they chose an high added value strategy for all their products that was based on better information, more technology,