Newspaper Company
Case Statement:
Your client is a newspaper company. He is facing the issue of rising costs and seeks your help to reduce costs and explore revenue sources
C: In which all languages does the client sell newspapers?
I: They sell English, Hindi, Telegu and Tamil newspapers.
C: Do they want to reduce the costs for all the languages or any particular language?
I: They want to reduce costs for all language papers.
C: I would like to understand where do we lie in the value chain –are we only manufacturing the newspaper or are we selling and distributing it as well?
I: So, we manufacture and send it to our distributors who then sell it to end customers.
C: I would like to evaluate the different costs involved in this process –
collection of information, printing (paper, ink etc.), transportation etc.
I: In printing; plate process is used wherein different plates are used every day and discarded at the end of the day.
C: Can a plate be reused?
I: Yes. It could be looked at as every language uses different plate. It could bring about significant cost reduction.
C: To reduce costs we can –change the grade of paper/ink used, hollow printing technology to save on ink, reuse plates, optimize work schedule of staff for better efficiency, employ freelance and multi-lingual journalists to develop adjacencies etc. (Refer case structure)
I: That’s right. We can close the case here.
Background Information:
Client: Regional newspaper manufacturer
Location: South India
Products: English & Regional newspapers
Competitors: Other newspaper players (have lower costs)
Case recommendations:
Accommodate the interviewer’s inputs.
Analyze the value chain of the newspaper industry.