Industry evolution - Bandar Alqabbaa

Industry evolution and strategic change

Bandar Alqabbaa

MBA Student at SEU


4 July 2019


Due to the change in the technological aspects, people who work in the industry always think on strategic change to face a number of recurring questions: Is our planning appropriate? If so, when and how can an industry deal with the changing environment? They question on who should be involved in talk and take an action to do a strategy changes, and what kind of changes.

The glob we live in is changing and employing new evolving technologies, especially information and communication technologies.

They are changing the way in which businesses can create and capture value, the working model, and can change how people interact and communicate with each other.

This assignment attempts to explore the management’s greatest challenges; to ensure that the enterprise adapts to its new environment, and the changes are occurring within the proper time to be in the competitive environment. Two topics were discussed; the first is related to the challenges facing the printed newspapers, and the second is evolution of the media including entertainment and music were illustrated.


The advancement and growth of civilization is divided into three eras: the agricultural era, the industrial era, and the digital era. Each of these times was affected by the ability to obtain new information and knowledge. However, they all required the changes and additions to new economic structures, social inspiration, work methods, and cultural transformations. People used the natural elements, such as: wind, water, land, livestock, and agricultural implements in the industrial era (Bessen, 2015).

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The industrial era utilized the application of industrial power, to find appropriate resources, and to do mass production operation. The backbone of that era was the vapor and steam engines, and fuel operated machines. During this period, the focus was on increasing the productivity of the allowed space, to build factories, and to establish supply and demand models. The relationships among suppliers and consumers lead to improved productivity, and to find more efficient process. Special attentions were given to production costs and sale prices, were it was found that these are important parameters to the success of the industrial societies (Gergen, 2002).

The digital era is focusing on generating and trading products and services through digitalized data, information, and knowledge. This era is based on an infrastructure comprising IT and communication. This new infrastructure is enabling new ways of control, coordination, and collaboration of already existed activities at lower costs. The digital resources made it easier to the public accessibility because boundaries and distances became not as critical as they were. The storage affordability facilitated the ease of the digital data use as well (Barley, 2015).

The digital revolution that we are experiencing today is not the ?rst technology to have effects on jobs. Steam engines, robotic, and ATMs technologies have historically replaced humans. Over the past 30 years the digital innovations has displaced many jobs that supported the twentieth-century middle class people. These displaced people were replaced with more computer programmers and web designers (Wayne, 2016).

Printed Newspapers Challenges

The invention of the television, telegraph, and radio put the printed newspapers in great challenges over the decades. Nowadays, the Internet is proving a far more dangerous medium to the traditional newspaper model. Less than two decades ago, no newspaper producer or reader would have ever thought that print news would be declining as what we are experiencing today. The problem of the new technology towards the printed newspapers was the existence of the Internet, smartphones, and other mobile devices. These devises became an almost an essential part of everyday life that radically changed the way companies do business.

The printed newspapers industry had initially lived in a criteria defined by Cascio, et al as “absent presence”. This is where technology is unappreciated by the management team; which was the fast growing use of the internet. In this situation, the priority was given to human resources and the social structures. The result is to find the organization disconnected from the latest market changes. In this situation, the organizations drag their feet to employ the technology and underestimate the signi?cance of technological changes (Cascio, 2016).

That drove small and large newspapers to the challenge to have no choice other than to abandon their traditional methods of publishing for a more innovative approach.

Advertising earnings constitute about 80 percent of newspaper income. Currently, advertisers are relying more on cheaper and more active online advertising space. Similarly, print classified ad sections are being in a great competition by websites focusing on classified ads, social networking and help-wanted guides. As a result, revenues from daily newspaper advertising dropped 44 percent from 2005 to 2009. In fact, the only advertising medium to see an increase in advertising revenue starting of the year 2009 was the Internet (Purdy, 2016).

Online information is becoming the source of news for many readers, especially the new generation. Today, many people get their news staring at a tablet or smart phone instead of getting the newspapers delivered to their homes as used to be in the past. . In fact, it is not so common to find metro or bus travellers reading a print newspaper in the recent days.

The newspaper sale trend has declined in paid circulation. A reduction of 24% from 53 million in 2005 to 40 million in 2014 is seen in the daily distributed newspapers (State, 2016). The new innovative digital media are pulling away ad revenue; in a 10 year time period, newspaper ad revenue has fallen from $47.4 billion to $16.4 billion (Purdy, 2016).

A research conducted from 2014 to 2015 showed that the online traffic is increasing using mobile devices to access news. The time spent by readers using mobile devices is less than time spent on desktop computers. The research concluded that newspapers’ web traffic is significantly greater than print spread (Purdy, 2016).

To manage the change, companies decided to reduce their costs by dropping down their print frequency, reducing to three days per week or just weekend publications, or have eliminated print entirely. For example, the Pittsburgh Tribune has decided to become a free, digital-only publication. They were hoping to grow its readership that way (Pittsburgh, 2016). The all-digital experimentation included the Seattle Post Intelligencer and the Ann Arbor News. The former is maintaining a print edition twice a week. Some other newspapers are maintaining their daily print process, or trying to take advantage of the Internet. To maintain their revenue flow, these companies had the readers to pay to get an access to their contents. Some websites provided video advertising, therefore charged advertisers. In another strategy to raise revenues, they used statistics and information available to better target their advertising to readers. For example, if a buyer is browsing automotive websites, the newspaper would direct car ads to that visitor (Pew, 2016).

What else they should have done: Publishers should’ve considered these steps to be able to live in this new world of competition. They must modify their strategy, publishers should change their higher-priced subscription system to a free, ad-supported system. The out-of-the-box thinking should be followed to find ways to earn revenues for available data and to do alignments with ad technology partners. Publishers should develop a platform strategy to find ways to attract a larger audience across multiple channels and with an expanded ecosystem. For example, to link their publishing efforts with e-commerce, and information services companies. In addition, publisher should evaluate their core system to find out the departments that get them good value. This is to re-evaluate the newsroom, editorial, product and operations, advertising, customer management, etc., to find the core and the noncore, what is needed to expand and build to become platforms, and to find the best way of extension to serve additional monetization opportunities or new customer (Gannett, 2016).

The Evolution of the Media Industry

The current technology is transforming to provide news, information, and entertainment, while publishers will need to consider adding ways to distribute their contents.

Vice Media had implemented a creative action to explain strategic change to demonstrate the value of their creative action as an alternative way of approaching the issue of strategic organizational change. Vice Media has a changed their ways to deliver their special variety of journalism. Vice has found the way to use the new technology where good journalism, encouraging cash flow, and the young generation’s attention. To manage the change, the magazine focused on music and street-culture with bold content that was appealing to the young generation. In 1998, Vice moved to New York and extended its insides more to include video by having partnerships with CNN and MTV. Today, Vice Media is a good representative for supplying news and entertainment, with a magazine. They publish in more than 30 countries, and included films and television productions, YouTube avenues, records, ad agency, and book imprint. Vice attracted investments from Technology A&E Networks, Crossover Ventures, and 21st Century. Vice’s approach is to have as many viewers as possible to see that content, provide valuable information, and to make money to keep paying to do that content (Adweek, 2014).


The aim of this assignment is to show that a creative action perspective on strategic change offers new insights. The incorporation of a creative action perspective helps increase the adequacy of strategy implementation to change the company approach to reach of different horizon. An observation about the implications and the declining of the printed newspapers against the free internet news was illustrated. Some newspapers vanished due to the rise of the free internet newsstands; others still exist by changing their approach of attracting readers while generating revenues. With the rise of the internet medium, the media business changed to incorporate different prospects to integrate entertainment, film industry, music, news, and much more.

The success or failure of an industry is based on the strategic and innovative thinking of its management teams. When the team is willing to take the initiatives to face changing time challenge and to adjust to the new evolved technology, the industry can flourish and advance, otherwise the industry can vanish.


Adweek, (2014), How Shane Smith Built Vice Into a $2.5 billion Empire. Adweek, Shane Smith. Interview Magazine

Barley SR. (2015), Why the Internet makes buying a car less loathsome: how technologies change role relations. Acad. Manag. Discov. 1:31–60.

Bessen J. (2015). Learning by Doing: The Real Connection Between Innovation, Wages, and Wealth. New Haven, CT: Yale Univ. Press

Cascio, W.F & Montealegre, R. (2016). How technology is changing work and organizations. The Annual Review of Organizational Psychology and Organizational Behavior. 3:349–75. 10.1146/annurev-orgpsych-041015-062352

Gannett (2016), Ends Its Attempt to Buy Chicago Tribune Publishers Tronc. The Wall Street Journal.

Gergen KJ.(2002).The challenge of absent presence. In Perpetual Contact, ed. JEKatz, MAakhus, pp.227–41. Cambridge, UK: Cambridge Univ. Press

Pew (2016), Pew Research Center report

Pittsburgh, (2016) Pittsburgh Trib to cease printing WESA.

Purdy, S., Wong, P, and Harris, P. (2016) Atop the Presses, Newspapers are struggling. Can an all-digital strategy be the path to profitability? KPMG.

State of the News Media (2016) Pew Research Center.

Wayne F. Cascio, (2016) and Ramiro Montealegre, How Technology Is Changing Work and Organizations, Annu. Rev. Organ. Psychol. Organ. Behav.3:349–75.

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Industry evolution - Bandar Alqabbaa. (2019, Dec 13). Retrieved from

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