The Future of The

New York Times

Presented To:

Ravinderjit Singh

Presented By:

Baliram Yadav

Asfak Hussain Khan

Mohammad Aslam Mu.

Mohomad Shaveen Hassim

Jambugaha Gedara Mohamed Nisthar Shaan

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CONTENT

INTRODUCTION
PROBLEMS
ANALYSIS OF THR ISSUE
SOLUTION

PRESENTATION
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ABOUT US
Launched New York Company by a Henry
Jarvis & George Jones in 1851.
•The Sulzberger family take over the company in 1967.
•Launched the NYtimes.com in 1995.
•A major players and leaders in print media and top
performers in internationally news in 2012.

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PROBLEM
 The NYT`s is the structure of it cost and it low income from the
online NYT`s.
 The weakness of the work inefficiencies and a lot of obligation
weight on the organization.
 Mostly based on traditional way of marketing.
 Profitability’s issue of Digital Market.
 Having low investment budget as compared to their competitors.
 The bargaining leverage is not given to clients by New York Times.
 Not having quality of journalism.
 Financial crisis.
 Digital generation of NYT`s confronts rivalry from a few competitors
of online news like The Washington Post, News Corporation, Ex.
Gannett Co.
 Lack of Innovation. 4

 Political Pressure.
 •The NYT`s is the structure of it cost and it low income from the online
Analysis of The NYT`s.
NYT suffered a recession under the leadership of Bill Keller
Issue (previously who ran the business successfully) by 25% from 53.80 to
40 per stock in mid-2002. During the tough times of NYT the owners
(Sulzbergers) invested in the company. This led them difficulties in
managing their cost and to invest newly growing technology or to
adopt to the online systems. So, they entered the online market pretty
late compared to their competitors. This led the NYT to generate low
income.

•The weakness of the work inefficiencies and a lot of obligation weight on

the organization.
Since the organization is mostly favorable in following the traditional
way of newspapers and sudden change along with the traditional way
led to interrupt the smooth functioning of the organization and the
employees were given more responsibilities ultimately employees
were under work pressure. This led to the work inefficiencies and put
more weight on the employees in order to perform well.

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Analysis of The •The NYT`s as well has the weakness as the daily paper business which is
slacking back because of the expansion in the utilization of innovation by
Issue individuals and the advancement of the assets which is making the daily
paper an old technique for pursuing.
Due to advancement of technology the NYT was forced to enter into
the digital world (online system) rather than following their traditional
way. This new technique had attracted many of the customers and felt
the users of newspapers as an old technique and motivates and attracts
new customers day by day in a huge way. This led NYT to have a
huge impact in their form of business.

•Digital generation of NYT`s confronts rivalry from a few competitors of

online news.
New competitors were attracted into the digital generation due to the
betterment of the technology and low cost entry strategy and ease of
doing business so because of that NYT had to dealt with some more
newly entered competitors and also the previously existed rivalries.

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Analysis of The •Many competitors in the market with better positioning:- The Washington
Post, News Corporation, Ex. Gannett Co.
Issue NYT entered the digital market pretty late and because of this many
competitors like The Washington Post, News Corporation, Ex.
Gannett Co. had entered the market early and they were in a better
position or they had studied the competitive advantage.

•Profitability’s issue of Digital Market.

NYT had performed very well in their traditional form of business and
by entering into the digital generation the NYT company at the
beginning were facing severe problems and were more into losses and
their performance in the digital market was relatively bad compare to
its traditional way.

•Having low investment budget as compared to their competitors.

NYT were having low investment budget since they were under a
recession and their share price became less during the period and
they had a very low budget compared to its competitors. So this led
the competitors to have an extra benefit over the NYT Company.

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Analysis of The •The bargaining leverage is not given to clients by New York Times.
Since the NYT digital market was not performing well or they were
Issue into losses the customers or clients were not given any bargaining
leverage where they had a fixed price in order to move into profits.
This led NYT to lose many clients at the beginning of their entry to
the digital market.

•Not having quality of journalism.

NYT were performing relatively bad and they were in a need to sack
some employees and later on because of this the quality of the
reporting news which they had produced before had been reduced
ridiculously and they were not having quality of journalism which they
had before.

•Financial crisis.
Since NYT were not performing well, the share price of the company
fell down and this led to demotivate many new investors to invest in
the company and ultimately the company was facing financial crisis.

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Solution
As we notice that the most income for NYT`s
are from the digital clients, no matter what is
the devices or technology used such as laptops,
IPad, Smartphone's. However, NYT`s most
income generated from the distribution and
advertising. Up to Sep 27th 2015, NYT`s Co
income fall 1% to $1.13B.with a net revenue
before extraordinary items of $11.6M vs. loss of
$574K. The advertising revenue reduced with
4% to $433.9M. Net Income reflects Selling,
general and administrative cost decrease of 6%
to $533.1M (expense), Depreciation and
amortization (b) decrease of 22% to $46M
(expense), early termination charge decrease
from $2.6M (expense) to $0K (Source, 2016).
Process Perspective
•Process change empowers NYT to
advance its hidden processes to reach
valuable returns which requires ideal
utilization of it digital initiative to
enhance it services provided to the
clients, and reach wider range of
segmentation in the market.
Financial Perspective •The processes KPI can be evaluated
•The evaluating of NYT’s business as a KPI
by, quality, market power, news
measurement can be by evaluating their profit
margin, current and profit ratio.
delivery, cycling time and the
• In the year 2014 NYT`s has picked around employee cost.
33,000 new digital subscription which
increase the total to 760,000 (Chittum, 2014).
• 2015 NYT`s launched the NYT VR, The
New York Times takes a step into virtual
reality for it new App (NYT, 2016).
•The NYT`s Launches The Upshot, Times
Premier, Launched NYT Now for iPhone,
Launched T Brand Studio (NYT`s, 2016).
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Solution
Learning and Growth Perspective
• Key sources for NYT`s learning and growth
are it associates, and journalist, this
employees are the sources of financial
income and costumers loyalty, however
system and processes of learning and
development required ongoing investment in
its employees and the improvement of it
internal system.
• Turnover ratio in organizations are key to
indicate the success of NYT`s, the KPI
measurement of learning and growth of
NYT`s can be according to its turnover.
Customer Perspective
• The increase in the circulation number and
subscriptions are indicator of the repetition
growth and client’s satisfaction.
• Advertising revenue will automatically
increase with the expanding of the circulation
and reach.
• Social media are the generation trend and
will support the increase of globally reach
and different audience segmentations (age
segment).
• Customer’s retention are one of the most
important key measurement for the NYT`s
performance and growth, and it support to
increase the market share for NYT`s.
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 COMPETITORS

The Washington Post News Corporation

Ex. Gannett Co.

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 Balance Sheet (Additional Research)
Breakdown 2019 2018 2017
Total Assets 2,089,138 2,197,123 2,099,780
Total Liabilities 915,275 1,154,482 1,202,417
Total Equity Gross 1,173,863 1,042,641 897,363
Total capitalization 1,172,003 1,040,781 1,140,683
Common Stock Equity 1,172,003 1,040,781 897,279
Capital Lease Obligations 55,136 6,832 6,805
Net Tangible Assets 1,033,329 900,499 753,730
Working capital 279,136 220,642 334,042
Invested capital 1,172,003 1,287,579 1,140,683
Tangible book value 1,033,329 900,499 753,730
Total Debt 55,136 253,630 250,209
Net Debt 5,294 60,493
Share issued 175,046 173,962 171,080
Ordinary Shares Number 166,175 165,091 162,209
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2500000

2000000

1500000 Total Assets

Totial Liabilities
1000000
Total Debt
500000
Total Debt
0 Totial Liabilities
Total Assets
2019 2018
2017

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 OUR TEAM
(Peer Rating)

Baliram Yadav “10” Asfak Hussain Khan “10” Mohammad Aslam Mu.
11802692 (A12) “10”
11800341 (A06)
11814190 (A37)

Mohomad Shaveen Jambugaha Gedara Section: Q4E31

Hassim “07” Mohamed Nisthar Shaan “10”
11800439 (A07) 11813867 (A32)

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THANK
YOU!
Questions ?
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