News Corporation SWOT Analysis

adam April 7, 2012 Conglomerate No Comments

News Corporation is among the largest media conglomerate, it is operating in multiple segments which include news, entertainment, advertising, direct broadcast satellite television, publishing and other assets.

Strengths

• It is amongst the top media conglomerate in terms of revenues.

• It has large number of subsidiaries and most of them are profitable and well-known.

• It has huge employee base of 51,000 as of 2011.

• It is operating worldwide.

• It is public traded company listed in NASDAQ and secondary listed in Australian security exchange.

• Healthy financials and has been enjoying good profits.

• Consistent in expansion.

• It is operating in eight segments which includes Television, entertainment, Cable TV, programming, newspapers, books publishing and etc.

Weaknesses

• Involve in different scandals which negatively impact its image,

• Decline in sales of publishing industry perhaps reduce the sales of News corporation

• Free downloading of movies has reduced the purchasing of DVD’s.

• Book publishing and magazines segment sales are low as compared to other segments of News corporation

• Lack of succession planning.

Opportunities

• Acquire online more news and magazine websites and blogs to increase its advertising profits.

• Online streaming services over internet.

• High demand for HDTV.

• Broadcasting market.

• Distance education via Television, online streaming and DVD’s

Threats

• Alternative free sources of information on internet.

• Increase in Piracy.

• It is facing strong competition from major player in entertainment industry.

• Slowdown in economy perhaps reduces the consumer spending on entertainment such as buying DVD’s.

• Change in government regulation.

References

http://www.newscorp.com/ retrieved on 8th April 2012

http://www.wikinvest.com/stock/News_Corporation_%28NWS%29 retrieved on 8th April 2012

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