Page 624 - The Case Lab Book

Perhaps the answer lies in the relationship between product and process.
For JP it has shed so many journalists, the very people who can originate
distinctive material that the product may have lost its unique selling
property. Moreover, the process is constructed on sound-bite reporting and
regurgitated content with the result that critical analysis is diminished.

JP: Revenue/Costs/Profit

JP

JP may be seen as a holding company for a portfolio of newspapers.

Centralised control operated on a portfolio basis but with less and less
autonomy allowed to the individual units as the growth strategy unfolds.

A problem may arise in the failure to live up to the JP motto

Revenue

JP makes its revenue from selling its newspapers and advertising space
within them.

A major threat is the development of ad blockers which eliminate ads from
browsers thereby making newspapers less than attractive to advertisers.

Circulation Revenue

Circulation figures for newspapers have steadily declined as consumers
switch from print media to digital.
The result has been a corresponding decline in sales revenues to which
the media companies have in part responded by increasing cover price an
almost counter intuitive action.

Advertising Revenue

As circulation figures fall advertisers see the reach of their products
diminish and as such their potential revenues. It is unsurprising therefore,