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New Business Expansion:
New Geographic Region Case Study
Situation
In order
to help sustain the growth of a major international media company, we
were asked to develop a business plan to introduce an existing newspaper
into a large media market in which this company had not operated before.
As part of this project we were asked to determine if it was worthwhile
to enter this new market.
Methodology
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Analyzed
reader and non-reader demographics & preferences
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Benchmarked competitors’ advertising strategies, prices
& sales
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Determined
who key advertisers are and how to meet their needs
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Benchmarked
competitors’ printing & distribution strategies
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Identified key printers and distributors
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Negotiated
contracts in order to print & distribute at key locations
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Projected
size and growth of all advertising categories based on competitive
offerings, expert interviews & past experience
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Projected pre-launch & startup costs for print, distribution
sales & marketing and administration
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Determined
P&L and NPV projections
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Results
• Newspaper has
successfully launched and is exceeding expectations
• Readers have welcomed the newspaper and make it one of the largest
in the marketplace
• Advertisers have embraced the newspaper and are including it in
their campaigns
New
Business Expansion: New Business Area Case Study
Situation
A large media company wanted to develop an internet portal in order to increase brand awareness, cross promote properties, and add a new revenue stream.
Methodology
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Determined
purpose of each existing website from company executives
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Analyzed how each website achieves its purpose
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Evaluated
performance of current websites
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Determined
best practice functionality and content
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Researched potential revenue streams
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Understood
how portal fits in with company’s strategic plans
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Determined
how to best market portal to existing & new customers
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Created a cross selling strategy in order to sell more products
to existing customers
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Determined
future revenue streams and how much could be projected from
each one
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Determined operational & launch costs
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Projected
P&Ls and NPV of new entity
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Results
• Increased market
cap of parent company by $500 million
• New entity provided parent company with a valuable new revenue
stream
• Subsidiary businesses grew due to cross promotion
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