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 games- etc)

 Employment  The New York Times Media Group:  New England Media Group:  Regional Media Group:  About Group: 215  Corporate/Shared Services: 411  Total: 7.665

Economic results of New York Times Group (in million dollars) Revenues Operating costs Economic results before taxes

Average daily circulation

Change of the average daily circulation between  ΝΥΤ: - 20,2%  Boston Globe: -45,8%

Revenues (in million dollars) Advertising revenues Circulation Other Total revenues News Media Group About Group

Advertising revenues of News Media Group (print and electronic editions – in million dollars) National Retail Classified Other Total

Analysis of operating costs (in million dollars) Raw materials Wages & benefits Selling, general & administrative costs Depreciation Other 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. 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. 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 long- term strategy. 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 long- term strategy.

BASIC BIBLIOGRAPHY  New York Times Corporation: Annual Reports,