Strategic Purpose and Position | Plan of the Presentation | 1.Vision and Portfolio Management 1.1 Strategic Purpose 1.2 Portfolio Goals and Strategies

Strategic Purpose and

Position

| Plan of the Presentation |

1. Vision and Portfolio Management

1.1 Strategic Purpose

1.2 Portfolio Goals and Strategies

1. Strategic Position

2.1 Environmenta. Macro-environment: PESTEL analysis

b. Industry: Porter’s Five Forces analysis

c. Competitors: Strategic Groups

d. Organization

2.2 Capability (Strengths / Weaknesses)

1. The Strategic Management Process: a SWOT analysis

Management of Media Firms IIa (C. Dal Zotto). Ringier’s Strategic Purpose and Position 17th December 2010


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| Strategic Purpose |


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. . . a “multinational media company conducting business in Europe and Asia”

. . . “approximately 7500 employees”

. . . “publishes newspapers and magazines”

. . . “produces and markets television programmes”

. . . “has major holdings in television and radio stations”

. . . produces “events and concerts including ticketing”

. . . “operates web and mobile platforms and printing plants”

. . . “a fifth-generation family company, founded in 1833”


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« Ringier has made its mission in each country to adopt the role of a guarantor of the diversity of information and opinion.

Using high-quality content, Ringier seeks to stimulate its customers and exert a positive influence over their experience.

The staff play an important role here and they are the greatest asset. It is only their strength that enables Ringier to be better than the competition. »

Taken from Ringier’s Corporate Social Responsability report (2008),« Profile » chapter, « Corporate Strategy » header :


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| Portfolio Goals and Strategies |

• Ringier’s main part of their turnover: print sector (magazines and newspapers)

• But: erosion of the subscriptions and decline of the sales in kiosk

• Solution: new growth engines and diversification sources of income:

• To start from the core business to develop into two directions:

o The Digital: sale of by-products to their file of subscribers => e-commerce

o The Entertainment: inclination of the Ringier’s print products to infotainment

• To lean on Ringier’s two strong brands: Blick and Schweizer Illustrierte


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| Strategic Position: Environment |

a. Macro-environment: PESTEL analysis

• Political: value-added tax (VAT). Preferential postal rate. Allocation of radio concessions. Swiss Competition Commission’s examination of mergers.

• Economic: cyclical factors (financial crisis since 2008)

• Social and Technological: structural parameters. New habits of media consumption. Free press.

• Environment: proofs of the company’s commitment regarding sustainability. Quality certifications.

• Legal: the Federal law ruling the VTA, Law on radio and television, Law against unfair competition...


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The advertisement market: daily newspapers’ lost of share on the long run


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b. Industry: Porter’s Five Forces analysis

• Potential entrants: foreign televisions’ advertising windows || thematic websites (Aufeminin.com) || Tamedia’s , Hersant’s or Axel Springer’s new products

• Buyers: acquisition of Ringier Romandie by a French media company ?

• Substitutes: “me too” products ?

• Suppliers: providers of paper, organised in a cartel => bargaining power


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d. Organization: internal outlook


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| Strategic Position: Capability |

a. Strengths

• first-rate human resources (skilled executives in the top management)

• ‘fit’ company: workforce and expenses resized according to the new yields

• a comfortable financial situation: a lot of money available in cash

• valuable assets: latest fashion rotary press, brand-new newsroom

• excellent reputation.

• strong brands

• newspapers clearly and well positioned

• diversified sources of income

• leader in many of its activities


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| Strategic Position: Capability |

b. Weaknesses

• restricted journalistic liberties (‘corporate journalism’) / editorial campaigns

• lack of know-how in the entertainment business

• lack of know-how in R&D

• industrial overcapacity


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| The Strategic Management Process: a SWOT analysis |

Longterm objective

The print sector (core business) is declining => diversify the sources of income, to find new growth engines (repositioning the company where there is growth, like the mobile phones market / compensate the losses of structural yields by occupying growing niches)

Environment (external)

Opportunities: ? || Threats: foreign TVs’ advertising windows; thematic websites; new products form Tamedia / Hersant / Axel Springer; Ringier Romandie’s acquisition by a French media company || Industries (competitors): Tamedia/Edipresse, the NZZ Group, Axel Springer, Swisscom, Microsoft, Google

Company (internal)

Strengths: first-rate RH; a lot of money available; valuable assets (rotary press / newsroom building); excellent reputation; strong brands; well positioned newspapers; diversification of the income sources; leader in many of its activities / Weaknesses: “corporate journalism” / editorial campaigns; lack of know-how in the entertainment business and in the R&D departments; industrial overcapacity (private rotary press)

Strategy formulation

« Moving Minds »

Strategic choice

reorganization of the company in three poles (print, digital, environment). || Disvestments: 12 / 13 TV magazines. || Ringier undertook several other disvestments in the recent years, like the health magazine Gesunheit Sprechstunde and the newspapers Cash

Strategic Implemention

implementation in the minds => communication of the strategy. In practice, the implementation results into the nominations of executives for the three poles, a concrete rearrangement in the offices, the Human Resources have to apply the ‘change management’ directives, etc.

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Documents

Strategic Purpose and Position | Plan of the Presentation | 1.Vision and Portfolio Management 1.1 Strategic Purpose 1.2 Portfolio Goals and Strategies