CASE STUDY
The New York Times
Group’s response to the
challenges posed by
technological
transformation and
economic crisis
EXERCISE
Analyze the core resources that a
firm has at its disposal and its
strategic intent
Basic bibliography:
Hamel, G. and Prahalad, C. (1994) Competing for the Future.
Boston: Harvard Business School Press.
Mintzberg, H. (2000) The Rise and Fall of Strategic Planning.
London: Prentice Hall.
Porter, M. (1985) Competitive Advantage: Creating and
Sustaining Superior Performance. New York: Free Press.
Thompson, A. and Strickland, A. (2001) Strategic
Management. Concepts and Cases. New York: McGraw –
Hill.
After Months of Tension, Globe Votes on Cuts
John Blanding/The Boston Globe
Michelle Bezanson and other employees rallied April 24 to try to save the paper.
The NYT Group
(1) The New York Times Media Group, which
includes The New York Times (“The
Times”), the International Herald Tribune
(the “IHT”), NYTimes.com and related
businesses;
(2) The New England Media Group, which
includes The Boston Globe (the “Globe”),
Boston.com, the Worcester Telegram &
Gazette (the “T&G”), the T&G’s Web site,
Telegram.com and related businesses; and
(3) The Regional Media Group,
which includes 14 daily newspapers
in Alabama, California, Florida,
Louisiana, North Carolina and South
Carolina, their Web sites, other print
publications and related businesses.
(4) The About Group consists of the
Web sites of About.com
ConsumerSearch.com,
UCompareHealthCare.com and
Caloriecount.com and related
businesses.
(5) Other interests (a Canadian
newsprint company, a 17.75%
interest in New England Sports
Ventures, LLC -“NESV”-, which owns
the Boston Red Sox, Fenway Park
and other real estate, approximately
80% of New England Sports Network
-the regional cable sports network
that televises the Red Sox gamesetc)
 Employment
 The
New York Times Media Group:
3.222
 New England Media Group: 1.989
 Regional Media Group: 1.828
 About Group: 215
 Corporate/Shared Services: 411
 Total:
7.665
Economic results of New York Times
Group (in million dollars)
2005 2006 2007 2008 2009 2010
Revenues
3231 3290 3195 2940 2440 2393
Operating
costs
2912 2996 2928 2783 2308 2137
Economic
results
before taxes
408
-552
185
-72
4
177
3500
3000
2500
2000
1500
1000
500
0
-500
2005
2006
2007
2008
2009
2010
-1000
Revenues
Operating costs
Results before taxes
Average daily circulation
1200
1000
800
600
400
200
NYT
Boston Globe
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
19
96
0
Change of the average daily
circulation between 2010-2005
 ΝΥΤ:
- 20,2%
 Boston
Globe: -45,8%
Revenues (in million dollars)
2005
2006
2007
2008
2009
2010
Advertising
revenues
2139
2154
2047
1771
1336
1300
Circulation
874
890
890
910
937
932
Other
Total
revenues
218
249
258
260
168
162
3231
3290
3195
2940
2440
2393
News Media
Group
3187
3210
3092
2925
2319
2257
About Group
44
80
103
115
121
136
3500
3000
2500
2000
1500
1000
500
0
2005
2006
Advertising
2007
Circulation
2008
Other
2009
2010
Total revenues
Advertising revenues of News Media Group (print and
electronic editions – in million dollars)
2005 2006 2007 2008 2009 2010
National
948
938
946
858
668
664
Retail
500
495
452
398
301
277
Classified
590
579
489
358
214
191
59
65
64
50
38
39
Other
Total
2097 2077 1950 1664 1221 1171
2500
2000
1500
1000
500
0
2005
2006
National
2007
Retail
2008
Classified
2009
Other
2010
Total
Analysis of operating costs (in million
dollars)
2005
2006 2007 2008 2009 2010
Raw materials
321
331
260
251
166
160
Wages & benefits
Selling, general &
administrative costs
652
665
647
621
525
498
1379
1398 1397 1328 1153 1054
Depreciation
135
162
190
144
134
121
Other
424
439
434
439
330
303
Total operating costs
2912
2996 2928 2783 2308 2137
3500
3000
2500
2000
1500
1000
500
0
2005
Raw materials
Depreciation
2006
2007
2008
Wages & benefits
Other
2009
2010
Selling & adm. Costs
Total operating costs
CORPORATE STRATEGIES
 Our
results in 2010 reflect our ability
to manage the business during a
period of transformation for our
industry and amidst uneven
economic conditions. We anticipate
that the challenges we currently face
will continue, and we believe that the
following elements are key to our
efforts to address them.
 Extending
the reach of our brands
Because of our high-quality content,
we believe we have very powerful
and trusted brands that attract
educated, affluent and influential
audiences. We are addressing the
increasingly fragmented media
landscape by building on the
strength of our brands, particularly
The Times.
 Strengthening
our digital businesses
Our goal is to grow our digital
businesses by broadening our
audiences, deepening engagement
and monetizing the usage of our Web
sites. We are pursuing a
multiplatform strategy across our
Company with new digital products
and new platforms, such as mobile,
social media networks and reader
application products.
 Restructuring
our cost base
Over the past few years, we have
focused on realigning our cost base
to ensure that we are operating our
businesses as efficiently as possible,
while maintaining the quality of our
journalism and achieving our longterm strategy.
BASIC BIBLIOGRAPHY
 New
York Times Corporation: Annual
Reports, 2005-2010