Pest for Newspaper Industry
PEST Analysis
Using the PEST analysis to assess the macro environment of the newspaper industry shows that the technology and recession are two of the major factors that have been affecting the newspaper industry as well as the socio cultural side.
Technology
The Internet, a powerful and advance technology, has changed the model of mass communication. The Internet has had a major impact on the external environment of the newspaper industry and has been gradually substituting the prints. It has also increased competitiveness with easy entry barriers requiring low capital cost and resources, which has been a threat for many established prints publications.
With Internet connection in almost every home, readers open sites that offer nearly everything found in the newspapers. Many newspapers, such as Guardian and Verdens Gang (Times, 2009), have had to compliment their daily prints with online version and further updates throughout the day, instead of waiting for updates till the next day’s print. Online news medium has also attracted incremental readership from other countries that were not as accessible to news in the days of prints.
The technological progress and internet has changed readers’ habits and their perception of news, reduced readers’ demand to prints and resulted drop in circulation that has affected newspaper industry’s economy and drop in advertisement revenue - 23% drop in 2008, according to Newspaper Association of America (The Economist, 2009).
According to Levine (Time, 2009), media integration, such as audio, video and text transmissions, is a fresh angle to the traditional communication model. It is an opportunity not only for the newspaper industry, but also for readers as information consumers and citizen journalist.
Economic Environment
Technological progress has impacted the economic side of the industry’s external environment. It has been a threat for many companies that have failed to keep up or went out of business and lost
Using the PEST analysis to assess the macro environment of the newspaper industry shows that the technology and recession are two of the major factors that have been affecting the newspaper industry as well as the socio cultural side.
Technology
The Internet, a powerful and advance technology, has changed the model of mass communication. The Internet has had a major impact on the external environment of the newspaper industry and has been gradually substituting the prints. It has also increased competitiveness with easy entry barriers requiring low capital cost and resources, which has been a threat for many established prints publications.
With Internet connection in almost every home, readers open sites that offer nearly everything found in the newspapers. Many newspapers, such as Guardian and Verdens Gang (Times, 2009), have had to compliment their daily prints with online version and further updates throughout the day, instead of waiting for updates till the next day’s print. Online news medium has also attracted incremental readership from other countries that were not as accessible to news in the days of prints.
The technological progress and internet has changed readers’ habits and their perception of news, reduced readers’ demand to prints and resulted drop in circulation that has affected newspaper industry’s economy and drop in advertisement revenue - 23% drop in 2008, according to Newspaper Association of America (The Economist, 2009).
According to Levine (Time, 2009), media integration, such as audio, video and text transmissions, is a fresh angle to the traditional communication model. It is an opportunity not only for the newspaper industry, but also for readers as information consumers and citizen journalist.
Economic Environment
Technological progress has impacted the economic side of the industry’s external environment. It has been a threat for many companies that have failed to keep up or went out of business and lost