Digital Marketing Optimization at Conde Nast
This technique of analysis takes a close look at the five forces that act on the companies of the same type that are present in a given market while impacting the profitability of the companies. Krumsvik (720), defines the five forces behind Competition insinuating that the environment of competition is modeled by a combination of the effects that are excreted by the five forces joined together on the business within the industry. The five forces that are depicted in this framework include barriers to entry, Threat of Substitutes, The buyer power, supplier power and Competitive Rivalry. Getting to understand the real dynamics of these five forces will give a clear outline of the how profitable operating a business within a certain environment can be profitable or not.
The relative strengths of the forces determine the profitability while operating in the industry (Steigrad, 5). The barriers to entry are characteristic of any industry. The barriers to entry tend to reduce the entry of the new firms into the industry and maintain the profit levels for the firms who are already operating in the industry. In this industry, the barriers to entry in most cases are created by the government which regulates the permit for the industry (Dobbs, 39). In some cases, the government through their policies encourages monopoly in the industry more so when the company that dwells in the industry id government sponsored. Other factors that affect the entry of a company into the industry include assets specificity which is very high in the media industry since the type of assets used in the industry can hardly be utilized in another setup.
The internet is continuously growing to be a major threat due to the improvement in the modern technologies. The buyer power is the impact that the customers are capable of exerting on the existing industry. In cases where monopsony is encouraged, the buyer tends to dictate a lot about the production dynamics. In the media industry, the customers tend to hold a lot of power in their hands on where to buy the products or not. The ability of the customers to switch is very high since all they need to do to change from one television station to another without any cost or difficulty. The industry can be said to be indiscipline since the instance s of rivalry among the firms is high.
one of the reasons why this is predominant is because the consumers of these products are the same and hence they share typically one market with the same customers. As a result of the competitive rivalry, there are other impacts that the company can incur in the process; the industry deals with perishable products like the newspapers that when not bought on time the time for the information reception expires and sales are destroyed. The threat that comes with perishability of the goods is very high. Additionally, the threat comes from the level of diversification and influence of the rival industries. and its chairman as Charles H. Townsend. The company has been so aggressive in the recent past marked by their launching of the Condé Nast Entertainment in the year 2011 which was geared towards the production of the films, digital video and the televisions (Dimmick et al.
, 195) The history of the company dates back to the owner Conde Nast, a publisher in the New York launching his magazine branded as the empire. In the flair of starting publishing, Conde Nast purchased the vogue a company under which he used to publish. The move was analyzed and a form of progress and in the same year the company bought the Fairchild publications from the Walt Disney Company. However, in the 2009 Condé Nast closed three of his company’s modern bible, elegant bride, and cookie. Leadership as well has changed in the company over time and several acquisitions like the sit reddit in the content aggregation sector of the company Dimmick et al. The company in 2011 become the first ever company to roll a subscription for the ipad, and by now they have rolled subscription for ipad in the nine of its subscriptions.
Later they announced the subscription of the android devices that initially was only available for the Samsung galaxy tab. In the year 2016, the company made decisions to improve in the expansions of the digital presents and the top ranks. in this slight they made a decisions of expanding their territory to Texas with the aim of developing third innovation team going by the recent article “The company’s Austin digital innovation center, which will employ up to 50 workers in its first year, with room to grow, will mark the first of its kind for Condé Nast and open in July, said Fred Santarpia, executive vice president and chief digital officer for the company. ” (Group, 2016). this is an example of their laid down plan towards improving their digital industry.
The most recent news by the company was “thanks to the aggressive efforts of its digital entertainment division, media giant Condé Nast Entertainment’s plans to release 2,500 original online videos for such iconic brands like the New Yorker, GQ, Vanity Fair, and Vogue. Most of the people were majorly used to the written content because the technology had not gained that advancement that was needed then to read the newspapers and the magazines in the electronic devices. With increasing age and technological advances, most of the customers now prefer more the digital means of getting the information as compared to the newspapers. The gap in the customer preferences has overtime been created by the technological gap. as technology takes over almost all the sectors of the world he prints methods of getting information is becoming more outdated, and the company stands to lose a lot of its revenues upon continuing with the same method of product provision.
The Conde Nast has striven to change over time into the digital operation; the transformation, however, requires high levels of technological efficiency. Similarly, in the first half of the year of 2016, the Glamour once seen as a jewel in the portfolio of Conde Nast witness a decrease in the circulation 18. With the fall in the circulation and readership, the advertisers become less compelled to reach their consumer via the print media. Most of the advertisers tend to migrate to other Platforms where there is a large number of traffic and where they can get more touch with their consumers making them subscribe more to their products. The Conde Nast has lost a lot of their advertisement partners because of the shift in the media industry.
The media costs for the two options are away apart. ” (Steered, 23). Not only is the self-magazine undergoing this change but also the teen edition of the Teen Vogue. The Solution The company is already in the process of solving the problem only that it needs a jumpstart project that will ensure that at the revenues are not adversely affected by the change that is affected. The business fashion stated earlier “Teen Vogue is scaling back its print presence, BoF has learned. The Condé Nast-owned publication will adopt a quarterly print publishing rhythm while increasing investment in its digital efforts. There are areas to be improved as start the company is concerned. one is to know the areas that need improvement and two the ways of optimizing the digital marketing.
The two problems can be solving effectively by information technology system known as the digital marketing optimization (Wymbs, 99). The digital marketing optimization solution is an information technology has three faces namely customer profiles, digital analytics, and the digital marketing execution. The digital marketing optimization has several features that are very critical to digital marketers. In the process of taking the brand to the market, the process should take place slowly to ensure that a balance of revenue is kept between the print media and the digital media. The feedback of the customer base is one of the key ways to ensure that the decision made to go online by a particular company in a given brand is a success. The on-premise solution, however, is designed for deployment within the local environment of the business opening the data access so that other integration to be done with business intelligence, predictive analysis amongst others.
Additionally, by using Software-as-a-Service (SaaS), the marketers gain the ability to conduct comparative benchmarks on other companies of their caliber who have successfully integrated into the digital market and are pretty successful. The digital marketing execution will lately come in in an attempt to quickly capture and retain the customer’s attention. Uniquely the website will world multiply in that that the general subscribers are only allowed to watch the videos and cannot gate the whole content that contains Ad in the magazines. A premium subscriber will have the opportunity to access the all the content, but again it will depend on the level of subscription. The website will also be designed in a way that the advert for the print media stores is added so that the system does not appear to be entirely digital.
As such the platform will work on improving the experience of the customers (Wertime & Ian, 456). The service providers will do the analytics, and this will call for the incorporation of the employees of the service providers as the applications are being integrated. PccWebWorld The vendors offer vast digital services. they offers search engine optimization, pay per click, content marketing, email marketing, SMS and YouTube marketing. These services are essential as they work to optimize the digital marketing optimization a solution that is geared to solve the problem that the company faces at this point. The company has given their vendor services to most prominent companies which are in the media industry. This fact makes us feel that they are better placed to handle the solution that the company needs.
Their consultations are free of charge for the individuals who show interest in their services. Additionally, the company gives interested parties a premium fee-based digital marketing services and SEO group training. In addition to the digital marketing optimization services offered by the company, it can be very helpful to the company as it additionally does analytics. However, the charges can be added the provisions of all the services at once can be of great importance to a company that. The vendor has wide agency services that they do lend to their subscriber companies. statesman. com/business/publishing-giant-conde-nast-open-austin-office-employ/5J7w4bIOnLPiatn6atlYHM/ Bordonaro, A. (2015, July 21). Condé Nast Grows Its Digital Media. Retrieved from Columbia Business School. Retrieved, from Business of Fashion, https://www.
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