Research On Strategic Transformation Of Daily New Media Development Co.,LTD

Under the slogan of the state calling for media reform,Daily News Media Development Limited Company was established in 2001,which is affiliated to Tianjin Daily Newspaper Group.In the following ten years, the newspaper products of the company sold well. Under the framework of the integration strategy,the newspaper distribution and sales chains were continuously expanded, occupying most of Tianjin paper intermediary market share,and it has experienced ten-year gold development.However,with the rapid development of Internet in 2010,the newspaper business is declining rapidly. Newspaper subscriptions are decreasing year by year, and enterprise development is experiencing serious problems.The integration strategy depends on the extension of industrial chain,di versification strategy depends on the expansion of multiple platforms and diversified services.There are two very different strategic solutions, each of which has its merits.Under the impact of the Internet, the audience access to information from the media has gradually turned to the internet.Facing the challenges and opportunities of the new era, the company obviously can no longer rely on the original integration strategy to develop the comp any. Management must consider the strategic transformation problem and transform the company into a diversified expansion strategy.This paper briefly introduces the company's organizational structure,core competencies, and the main operating sources.Through the statistical analysis of the key business data, the paper puts forward the main problems that the company must carry on the transformation.In the analysis method,it uses PEST analysis method to analyze politics, law,economy,society,culture and technology.It pointed out that the tightening of public opinion environment,the decline of the real economy,the audience's dependence on the Internet,the rapid development of information technology,and these are important reasons that the company carries out diversification strategies.Using five forces model to analyze suppliers,buyers,potential competitors, substitutes, competitors in the industry,the paper pointed out that the impact of factors such as the Internet media market is gradually shrinking, companies can no longer rely on the original integration strategy,it should seek diversification. The strengths, weaknesses,opportunities and threats and their combinations were analyzed by SWOT analysis.It pointed out that SO combination - diversification and expansion strategy transformation is the best choice for the company. After determining the transformation strategy,it pointed out that the company needs to achieve diversification strategy through the establishment of a diversified omnimedia platform, diversification of operations, adjusting the institutions and staffing when it is implemented.Finally the paper pointed out that the company transformation strategy not only has many opportunities and advantages, but also accompanied by challenges caused by lack of experience.We are looking forward to the broad prospect of the whole media strategy based on platform diversification and foresee the support of national policy. After the transformation, the company should be more able to adapt to the background of the times.