Key Drivers of the Firm (Western Australian Newspaper)

The success of any company that operates in a media environment strongly depends on such characteristics as profitability, accessibility to potential customers, ability to keep in touch with new technologies, and diversity of the content that this firm provides. Various strategies can be employed to increase efficiency. In this paper, we are going to discuss some of them and give a specific example of such a firm as West Australian Newspapers Holding (WAN). We need to assess the key drivers or those elements which contribute to the continuous growth and development, for instance, its Web site and Internet, circulation and advertising, networking, and a wide range of content. Apart from that, it is necessary to measure their contribution to the overall result.

WAN should not be considered only as a newspaper, because much of its content has been digitalized, and it is readily available on their website. In the age of information technology, every enterprise has to change the standards of operation. The website serves two purposes: 1) it conveys a wider scope of information (news bulletins, entertainment, commercials, videos, audios, and so forth). Secondly, it can be reached at any time and from any region. This only boosts the popularity of this media group. The major task of the Internet is to popularize WAN. It is rather difficult to evaluate its contribution as the website does not bring any financial reward at least directly. However, with its help more and more people in Australia and all over the world learn about the company and its services.

The second element which is essential for good functioning is circulation and advertising. It is directly connected with the profitability of the firm and its position in the market. In this respect, we should speak about buyers of newspapers, sponsors, and major advertisers. They choose WAN as the channel to promote their products. The cost-effectiveness of this firm relies on its investments. But mass circulation is impossible without a well-established population. This is the reason why Western Australian Newspapers have to find ways of attracting the target audience.

Thus, we need to discuss such a driver of this company as networking. Now, this form includes nine radio stations, more than twenty newspapers and magazines, an electronic website, and video news. In this way, WAN tries to find more customers, either average people who may want to read newspapers or manufacturers who need to present their goods to the public. Networking helps the firm stay firmly on the ground. Finally, we should mention the fourth driver, diversity of content. West Australian Newspapers give information about politics, international relations, entertainment, fashion, the life of celebrities, and even gossips. Therefore, a great number of people find it very interesting to read their magazines, listen to their radio programs, or enter their website. These are the key elements or drivers that lay the basis for success or at least stability.

It is rather difficult to determine the exact degree of their contribution. Of course, the income comes mostly from two sources: advertising and circulation. Without them, WAN would simply go bankrupt. However, the website (or Internet in general), networking, and diversity must not be overlooked. They ensure that this media group enjoys demand among potential clients. One can say that they do not bring money or any financial benefits. But they help to draw new segments of the Australian population. This is why they are equally important, and none of them should be viewed as unnecessary. This case illustrates the methods used by media companies in an effort to remain productive.