Page 54 - Newspaper of the Future Teaching Guide
P. 54
However, how the firm reduces its costs is extremely important. In the
case of JP it appears that it has attacked its primary cost – staff and
substantially reduced journalist numbers.
Profit
Profit at JP has taken a hammering over the last decade as circulation
figures have plummeted. To some extent JP has tried to grow its way
out of the problem by acquiring more and more titles.
However, this is a strategy which is predicated on selecting the right
target, at the right price and being able to extract cost efficiencies from
them.
The problem here is that efficiencies generally have to be long term in
nature without the possibility of destroying the strategy they are
supposed to support e.g. The Newsroom of the Future has the
potential for both success and failure determined to a great extent by its
implementation.
The Newsroom of the Future is a laudable concept drawing together
the disparate part of the rapidly changing nature of print media and
restructuring it into a comprehensive online and print media presence.
