Metro News and Porter
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- Date Submitted: 12/09/2010 03:13 AM
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Market and submarket profitibilty analysis
Existing Competitors
Metro is an international firm publishing specific papers for their operating markets. As we showed in Chapter 3, their competitors are local and do not operate on a global scale like Metro does. Every market has a different amount of competitors, mostly depending on the scale of the market. If you would brake down every market (100+) metro operates in to all the competitors they have you would get in the hundreds of competitors and it would be to many to handle. So competitors will have to be broken down by their specific market. Anyhow, competition in the market of (free)newspapers is huge. As described in chapter 3 competition can be approached as a whole by the use of general strategic groups appearing in generally most countries.
Strategies and product offerings usually don´t differ much to that of Metro and mostly similar product offerings are found. Most free newspapers have similar strategies and usually do exactly the same. Every competitor want´s to reach as many daily readers as possible. They´ll adjust their content over time to achieve this. In the end this means that most free newspapers offer very similar papers. Nearly all competitors rely on advertising and reaching a specific reader contributes to high margins.
It´s easy to exit a market for metro as they don´t have very strong commitments to distributors and consumers. They only operate small local offices with limited staff as much of their content is written globally for all copy´s of their paper
Potential Competitors
To enter the market of free newspaper is a complicated process and requires a lot of investment. The largest barrier is to built an editorial staff. Most other activities like printing and distribution are outsourced, if available in the market.
Again, the thread of potential competitors depends on the market Metro operates in. Metro introduced their free newspaper in Mexico city recently and was the first...
Existing Competitors
Metro is an international firm publishing specific papers for their operating markets. As we showed in Chapter 3, their competitors are local and do not operate on a global scale like Metro does. Every market has a different amount of competitors, mostly depending on the scale of the market. If you would brake down every market (100+) metro operates in to all the competitors they have you would get in the hundreds of competitors and it would be to many to handle. So competitors will have to be broken down by their specific market. Anyhow, competition in the market of (free)newspapers is huge. As described in chapter 3 competition can be approached as a whole by the use of general strategic groups appearing in generally most countries.
Strategies and product offerings usually don´t differ much to that of Metro and mostly similar product offerings are found. Most free newspapers have similar strategies and usually do exactly the same. Every competitor want´s to reach as many daily readers as possible. They´ll adjust their content over time to achieve this. In the end this means that most free newspapers offer very similar papers. Nearly all competitors rely on advertising and reaching a specific reader contributes to high margins.
It´s easy to exit a market for metro as they don´t have very strong commitments to distributors and consumers. They only operate small local offices with limited staff as much of their content is written globally for all copy´s of their paper
Potential Competitors
To enter the market of free newspaper is a complicated process and requires a lot of investment. The largest barrier is to built an editorial staff. Most other activities like printing and distribution are outsourced, if available in the market.
Again, the thread of potential competitors depends on the market Metro operates in. Metro introduced their free newspaper in Mexico city recently and was the first...