All media enterprises face the imperative to grow and change with their customers, or be left behind. There are three ways to grow – through research and development of new products, through partnerships and through acquisition. The culture of a organization often changes in tandem with the life stage of a firm. Successful start-ups create products and services that meet unfulfilled customer needs and wants. They employ offensive strategies, seeking to build market share. Mature firms are often in a defensive position, fending off attackers and preserving market share. The pace of change and innovation has picked up considerably in recent years. In order to keep pace with change in the marketplace, media organizations need to continually re-evaluate and reinvent their culture and their business model. In the digital world, the emphasis for news organizations is on retaining and growing audience. Here are the questions you’ll consider in this chapter:
- What are the various stages in the typical life of a company? How does this affect a company’s ability to grow customers, revenues and profits, and the strategies that it pursues?
- How can companies grow revenues and profits?
- How fast must companies change their business model in order to survive?
- How did the Internet challenge the economics of existing media companies?
- What will be the business models going forward?