Newspapers industry analysis from the perspective of business model dynamics
Author(s): Tedjo, F. L. F. (2014)
Abstract:
This study examines the expected viability for the business models originating from the incumbent and the new platform player within the Dutch newspapers industry. The main argument is here that the business model that acts the most proactive has the most chance of viability in the long term. In order to examine this, overview of the external factors that affects the newspapers industry are identified and categorized into the economic, technological and social external factors. The value proposition and revenue streams business model components from the two business models are analyzed and compared to each other in order to draw a conclusion on the expected viability. The findings of this study suggests that the business model of the new platform player appears to act as the most proactive towards the external factors while the incumbent player can be characterized as resistive towards the current external factors. Therefore, this study suggests that the business model of the new platform player has a good opportunity for viability in the future due to its proactive character. By knowing the external factors, this study suggests that companies should act proactive rather than resistive or ignoring the external factors in order to stay viable in the long term.