The Strategy that The Chronicle Gazette Must Implement to Further Essay

The Strategy that The Chronicle Gazette Must Implement to Further Penetrate and Maintain Its Market - Essay Example This research will begin with the statement that one among the leading newspaper in a major metropolitan area in the United States, The Chronicle Gazette, has a paid circulation of 225 customers. It is one among the highest rated newspaper in America. In fact, its writers have been recognized and awarded for their excellent works. Despite this fact, the Chronicle Gazette is challenged by a steady decline in its customer base subscription as well as its advertising revenues. It has been observed in the past 8 years that there has been a drop of a total of 35 percent among the customer base subscription to Chronicle Gazette. As a result, its advertising revenues have also deteriorated by a total of 28 percent. This is not only true for the case of Chronicle Gazette but also valid for the cases of other huge newspapers like New York Times and Wall Street Journal. Meanwhile, this continuous decline in subscription and advertising revenues to Chronicle Gazette and the whole newspaper publ ishing industry in the United States are largely caused by the increasing dominance of the Internet. This is because the Internet has largely become today’s means of news and information dissemination. Unlike newspapers, access to news to the Internet is for free. Aside from the free subscription, news accounts are indeed up – to – the – minute. The Internet is certainly more advantageous than a newspaper for having also video recordings on hot topics that can be played and watched. The Internet is very fast, up – to – the – minute, and has different features, unlike newspapers. Moreover, videos can be watched and more topics can be further explored by just a click on the Internet. According to Hoover’s Inc., there are approximately 2,000 companies that comprise the newspaper publishing industry in America today. The total annual revenues of the newspaper industry in America amount to approximately $30 billion in which majority of this earning come from the advertising revenues followed by customer base subscriptions. On the one hand, the circulation of the newspaper industry in America sums to an almost $50 million daily. Nonetheless, a constant decline in the circulation, as well as advertising in newspapers, has been observed over the past few years. This is because of the technological advancement of the Internet. People can readily access news and information any time they want for free. Internet news is up – to – the – minute and can be accompanied by videos and other details with just a click on the internet. 2.1 Data on the Declining Circulation and Revenue According to the Newspaper Association of America, there is an observed decline in the circulation of newspaper copies in the United States over a ten – year period. From the total number of 115,194,000circulated newspaper copies in 2000, it has significantly reduced to 97,712,000 in 2008.