presented by: luis carrerarichard gonzalez jimmy sanabriamiriam lopez regina prietorosie b....
TRANSCRIPT
Presented by:Presented by:Luis CarreraLuis Carrera Richard GonzalezRichard GonzalezJimmy SanabriaJimmy Sanabria Miriam LopezMiriam LopezRegina PrietoRegina Prieto Rosie B. VillanuevaRosie B. Villanueva
Tuesday, April 15, Tuesday, April 15, 20032003
Chicago Tribune Chicago Tribune
TRIBUNETRIBUNE One of country’s premier media companiesOne of country’s premier media companies Businesses in publishing, broadcasting and on the InternetBusinesses in publishing, broadcasting and on the Internet Reaches more than 80 percent of U.S. householdsReaches more than 80 percent of U.S. households Only media company with newspapers, television stations and Only media company with newspapers, television stations and
Web sites in the nation’s top three marketsWeb sites in the nation’s top three markets
Tribune’s CEO and President is Dennis J. FitzSimons.Tribune’s CEO and President is Dennis J. FitzSimons.
Tribune's Divisions in Three Industry SegmentsTribune's Divisions in Three Industry Segments PublishingPublishing Broadcasting and EntertainmentBroadcasting and Entertainment InteractiveInteractive
MissionMissionBuild businesses that inform and entertain ourBuild businesses that inform and entertain our
customers in the ways, places andcustomers in the ways, places and
at the times they want.at the times they want.
Tribune’s DivisionsTribune’s Divisions
Tribune Broadcasting
and Entertainment
Tribune Publishing
Tribune Interactive
26 TV stations
Radio stations
Chicago Cubs
12 market-leading daily newspapers
Spanish-language newspapers.
Magazines
50 interactive news and information web sites.
Chicago DivisionsChicago DivisionsBroadcasting and Entertainment DivisionBroadcasting and Entertainment Division
26 Major-market television stations (WGN, CLTV, KTLA and 26 Major-market television stations (WGN, CLTV, KTLA and Superstation WGN on national cable)Superstation WGN on national cable)
Ownership in multiple radio stations (WGN-AM)Ownership in multiple radio stations (WGN-AM) Ownership of Chicago Cubs baseball teamOwnership of Chicago Cubs baseball team
Publishing DivisionPublishing Division Nation’s second-largest newspaper publisher in terms of revenue and Nation’s second-largest newspaper publisher in terms of revenue and
No. 3 in total circulationNo. 3 in total circulation Operates 12 market-leading daily newspapers such asOperates 12 market-leading daily newspapers such as
Los Angeles TimesLos Angeles Times Chicago TribuneChicago Tribune NewsdayNewsday
Plus targeted publications Spanish-language newspapersPlus targeted publications Spanish-language newspapers La OpinionLa Opinion ExitoExito HoyHoy El Sentinel.El Sentinel.
Divisions Cont’dDivisions Cont’d
Tribune InteractiveTribune Interactive operates approximately 50 operates approximately 50 interactive news and information web sitesinteractive news and information web sites
Sites rank among the top 20 in the news and information Sites rank among the top 20 in the news and information networks in the country. networks in the country.
Some of the sites are:Some of the sites are:
CareerBuilder.com, CareerBuilder.com,
Apartments.com, Apartments.com,
Cars.com Cars.com
BlackVoices.com.BlackVoices.com.
Tribune – General EnvironmentTribune – General Environment DemographicsDemographics
Younger audiences (18-34) and minorities offer unique Younger audiences (18-34) and minorities offer unique challengeschallenges
TechnologicalTechnological Major player in the evolving marketsMajor player in the evolving markets Leading Trend SettersLeading Trend Setters
EconomicalEconomical Cost CuttingCost Cutting Reduced Advertising Expenses (all industries)Reduced Advertising Expenses (all industries)
RegulatoryRegulatory Digital BroadcastingDigital Broadcasting Relaxed cross-ownership rules and TV-ownership capitalsRelaxed cross-ownership rules and TV-ownership capitals
Merger & Acquisition TrendMerger & Acquisition Trend Publishing highly fragmentedPublishing highly fragmented Increase circulation and achieve economies of scale Increase circulation and achieve economies of scale
Newspapers
100
12
32
25
19
TV Stations
22
26
0
3
8
Web Sites
100+
50+
50+
8
40
Other
8
11
0
3
5
Gannett
Tribune Co.
Knight Ridder
Dow Jones
New York Times
Main CompetitorsMain Competitors
Internal AnalysisInternal Analysis
President and CEOPresident and CEO
- Dennis FitzSimons (July 2001), promoted - Dennis FitzSimons (July 2001), promoted
from within after 19 years of servicefrom within after 19 years of service Research and DevelopmentResearch and Development
- Demographic trends- Demographic trends
- Technology- Technology
Internal Analysis Internal Analysis (continued)(continued)
Computer Information SystemsComputer Information Systems EfficientEfficient Links all three divisionsLinks all three divisions
Loyalty to EmployeesLoyalty to Employees Required senior management to take a Required senior management to take a
5% 5% salary cut salary cut
Strengths and WeaknessesStrengths and Weaknesses
StrengthsStrengths- Innovator in digital media- Innovator in digital media- Increasing market share- Increasing market share- One of the largest media companies- One of the largest media companies- Strong legal team- Strong legal team
WeaknessesWeaknesses- Only operational domestically- Only operational domestically- Possess low performing radio and TV stations- Possess low performing radio and TV stations- Decreasing advertising sales- Decreasing advertising sales
Opportunities and ThreatsOpportunities and Threats
OpportunitiesOpportunities- Growing minority population - Growing minority population - Aging population- Aging population- Lower internet costs- Lower internet costs- Changes in regulatory climate- Changes in regulatory climate
ThreatsThreats- Continued economic recession- Continued economic recession- Increasing globalization- Increasing globalization- Fierce competition within industry- Fierce competition within industry
Strategy FormulationStrategy Formulation(matching stage)(matching stage)
SPACE Matrix-financial and industry strengthsVs environmental stability and competitive advantage-Competitive Quadrant: intensive, integration, joint venture
Boston Matrix
-goal: star status
-ex: product development-successful products (maturity)
Strategy FormulationStrategy Formulation(matching stage)(matching stage)
Grand Strategy Matrix-excessive resources-risk-ex: market development-good at what it does
EI Matrix-hold and maintain-market penetration and product development-ex: market penetration-economies of scale- competitive advantage
Strategy FormulationStrategy Formulation(decision stage)(decision stage)
QSPMQSPM Market developmentMarket development Product developmentProduct development Market penetrationMarket penetration Internal/ExternalInternal/External WeightsWeights Discarded-ex: increasing free cash flowsDiscarded-ex: increasing free cash flows
Four Strategies ConsideredFour Strategies Considered
1.1. Joint venture with UnivisionJoint venture with Univision
2.2. Serving the International Latin MarketServing the International Latin Market
3.3. Internet to Replace Paper Version Internet to Replace Paper Version
4.4. Medical Web Site with Walgreen’sMedical Web Site with Walgreen’s
Four Strategies ConsideredFour Strategies Considered
1. Joint venture with Univision1. Joint venture with Univision
Parallel Interests, similar companyParallel Interests, similar company Acquisitions in Radio – Hispanic Acquisitions in Radio – Hispanic
BroadcastingBroadcasting Existing Core CompetenciesExisting Core Competencies Lower Initial Cash OutlayLower Initial Cash Outlay
Four Strategies ConsideredFour Strategies Considered
2. Serving the International Latin Market2. Serving the International Latin Market
Minority and growing International Minority and growing International market in Central and South Americamarket in Central and South America
Antitrust legislation not as great an Antitrust legislation not as great an issueissue
Global PerspectiveGlobal Perspective
Four Strategies ConsideredFour Strategies Considered
3. Internet to Replace Paper Version3. Internet to Replace Paper Version
Younger ReadershipYounger Readership Lower costs for production and Lower costs for production and
distribution distribution Speedier and more timely DeliverySpeedier and more timely Delivery Greater Detailed InformationGreater Detailed Information Core competenciesCore competencies
Four Strategies ConsideredFour Strategies Considered
4. Medical Web Site with Walgreen’s4. Medical Web Site with Walgreen’s
Existing working partnership with Existing working partnership with Walgreen’s (Walgreen’s Presents Walgreen’s (Walgreen’s Presents RxTV)RxTV)
Small initial capital outlaySmall initial capital outlay Core Competencies to design and Core Competencies to design and
operate web-sitesoperate web-sites
Our Choice of AlternativeOur Choice of Alternative
Joint venture with UnivisiónJoint venture with Univisión Leading Spanish-Language media Leading Spanish-Language media
company in USAcompany in USA Univisión’s programming base Univisión’s programming base Strong Management Information SystemStrong Management Information System Reputation of UnivisiónReputation of Univisión
Our Choice of AlternativeOur Choice of Alternative
Sabado Gigante (Giant Saturday) Sabado Gigante (Giant Saturday) Univision has premiere Spanish-language Univision has premiere Spanish-language
website.website. Hispanics are largest minority and most rapid Hispanics are largest minority and most rapid
growinggrowing Galavision is the largest Hispanic cable Galavision is the largest Hispanic cable
network in the U.S.network in the U.S. Univision’s radio programmingUnivision’s radio programming
ImplementationImplementation
Both companies have strong R & D departments.Both companies have strong R & D departments. Change cultures and structure of organizationsChange cultures and structure of organizations Linking management information systemsLinking management information systems Hiring more competent bilingual staffHiring more competent bilingual staff No major acquisitions neededNo major acquisitions needed Use major existing assetsUse major existing assets Controlling committee will have equal sayControlling committee will have equal say Bringing legal aspects togetherBringing legal aspects together
Questions and AnswersQuestions and Answers