The paper "Market Segmentation and SWOT Analysis of Fairfax Media in Australia" is an outstanding example of a marketing case study. Fairfax Media is among the leading Australia media companies. Its operations are diversified and have branches in Australia, United States and New Zealand (Australian Securities Exchange 2013). Some of its operations include magazines, newspapers, digital media, and radio. Fairfax Media is a publically listed company and it was established in 1841 (Fairfax Media, 2013). The operations of Fairfax Media is based on three parts, which are defending and growing newspaper line, increase earnings from Internet and enhancement of digital media. Industry Analysis – Media Industry Industry Definition The media industry brings together governing bodies, people and businesses that are involved in processing, manufacturing, creating and distributing both print and digital materials to the end-users (Koekemoer, 2008).
The print and digital media incorporate print media e. g. newspapers and periodicals, audio media e. g. radio stations, video-audio e. g. television and online media e. g. Internet publications. Product Market Definition Fairfax Media operates in general media provisions to its consumers. The general media including online, print, audio and video in which Fair Media operates. Porter’ s Five Forces Factor Attractiveness Why The threat of New Entrants Low Constraints associated with getting access to important media space and channels and public frequencies that are regulated by the government (Shimp, 2010) Difficulty in attracting and retaining important talent is challenging and expensive (Carroll & Buchholtz, 2009) Engagements are usually based on long term relationships Difficulty in deep connection with consumers attitudes, regional demographics, values, and behaviors (Hunt, 2002) Bargaining power of suppliers High Spaces and premier are limited while supply is lower than demand Seasonal campaigns/programs affect supply (Kotler and Amstrong, 2010) The suppliers are industry independent Possibility of forwarding integration Bargaining power of buyers High Consumers can switch easily between channels/prints Substitutes such as the Internet and social media can affect the entire process (Jonathan and Smith, 2004) Rivalry among existing competitors High High stakes because each organization aims to increase market share Larger budgets for infrastructural development Niche based competitors (Burrow, 2011) The Threat of Substitute products High No substitute to media dispensation based on Fairfax Media operations but there are numerous companies offering similar services (Vega, 2001) Allows for forwarding integration because of constantly evolving technological background but should be utilized inappropriate manner (Kant, 2011) Macro-Environment (PESTn Analysis) Factors Why Political/Legal Legal and legislative requirements that guide the business (Keillor, 2007) Positive diplomatic relations with New Zealand and the United States Socio-Cultural Many people are utilizing different means and strategies to access information (Yeshin, 2012) Expansion of consumer segments Differentiation and diversification of contents Economic Stable economy Technological Online competition Numerous means of service and product payments Diversification of network and technologies on the media industry Natural A disruptive climate that can prevent the distribution of content Fairfax Media strategic decisions Investing heavily in innovation and technological development to ensure Fairfax Media becomes more competitive on analog and digital platforms (Jain, 2008) Entering positive collaborations and acquiring additional media outlets to maximise on economies of scale Addressing production costs with the aim of producing at a cheaper rate and hence increase in revenues generation Competition (Porter’ s Generic Strategies) In ensuring that Fairfax Media succeeds in a competitive market that is continuously facing decline sin terms of revenues and profits, the most appropriate strategy base on the following image are focused strategy and differentiation strategy with the aim of championing product uniqueness. Integrating these two strategies will ensure: The focus strategy concentrates on satisfying the needs of a specific segment with the aim of achieving coast advantage(Koekemoer, 2010) Improves on customer loyalty and preferences to the company’ s brand resulting in higher sales compared to competitors Differentiation enables the development of services and products that are unique and can easily be valued by customers Differentiation is based on quality, additional services, and product image Customers (Market Segmentation) Source: http: //www. asiamedia. net. my/segmentation-media-industry Fairfax Media consists of digital and print forms of media.
These types of media appeal to different segments. To fulfill the requirements of different segments, Fairfax Media has: Developed products that satisfy the requirements of each segment (Kitchen & De Pelsmacker, 2004) Diversification through the use of new technologies (Yeshin, 2006) Strategic acquisitions and mergers to increase market share Targeting Fairfax Media has developed products and services that satisfy the requirements for specific consumers.
For example, there are magazines aimed for women while at the same time online services for business consumers are available (Australian Securities Exchange 2013). In addition, there is print and digital information that brings together all the consumers such as news. Therefore, Fairfax Media maximizes on sourcing information from numerous sectors and structuring the information based on the targeted market (Belch et al. , 2011). Internal Analysis Marketing
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